RFID
Future
We know due to
so many benefits and functionalities of RFID, the RFID Future seems
to be bright. So let’s have a look at various points regarding RFID
Future. Many regard RFID as a technology in its infancy with as yet
untapped potential. The technology has many benefits to offer. Its
stumbling point seems only to be a variety of issues outside the
technology itself: marketing problems, false promises, and a lack of
standards. Industry members, however, have become painfully aware of
these problems and are trying to do something to remedy the mistakes
of the past. If they are able to successfully unify the industry
with standards, deliver on future promises, and convince end users
of the technology's benefits, then RFID Future looks
favorable.
The RFID Future
Is Brighter: Developments in RFID technology continue to yield
larger memory capacities, wider reading ranges, and faster
processing. It is highly unlikely that the technology will
ultimately replace barcode — even with the inevitable reduction in
raw materials coupled with economies of scale, the integrated
circuit in an RF tag will never be as cost-effective as a barcode
label.
However, RFID
will continue to grow in its established niches where barcode or
other optical technologies are not effective, such as in the
chemical container industry and live stock industry. If some
standards commonality is achieved allowing RFID equipment from
different manufacturers to be used interchangeably, the market will
likely grow exponentially. Until then, the full scope and potential
of RFID technology has yet to emerge. Undoubtedly the RFID Future is
much brighter than expected with few
exceptions.
The RFID Future
In Technology: Currently, RFID technology is still too expensive to
be used by retailers en masse. The cost per electronic tag now
stands at about 30 cents apiece, but is expected to fall to as
little as three cents in the next three years. RFID tags will
probably not become pervasive until the per chip cost dips below one
penny. Retailers will still have to purchase sensors to read the
tags, which can cost $1,000 each.
In spite of the
costs, some retailers are willing to pay the price for the insight
RFID tags provide into the lives of consumers. Over the next few
years, industry experts expect to see a broad range of RFID pilots,
and even several fully integrated systems, launched. A handful of
corporations have already signed on, and are moving ahead with plans
to embed products with RFID tags. Recently, Microsoft Corporation
announced that it would develop software that will enable retailers,
manufacturers, and distributors to use RFID tags to track goods
within stores and factories, as well as programs specifically
designed to use the new retail tagging technology. So that would
boost up the RFID Future to a great
extent.
The RFID Future
for the Pharmaceutical Supply Chain: Radio Frequency Identification
(RFID) is hardly a new concept. For some, RFID is already a
mainstream technology—it is used every day to pay tolls, secure
building access, control manufacturing subassembly movement and
track assets. Until recently its impact in supply chain management
has been limited to niche roles due to cost barriers as well as a
lack of accepted standards, technology challenges and performance
limitations.
RFID presents
the potential to provide tremendous benefits to the pharmaceutical
and health care industries. The technology's capability for
individual unit tracking and overall visibility will greatly reduce
product diversion, making this and counterfeiting difficult.
Dispensing errors will also be decreased, thus increasing patient
safety. If product diversion does occur at any point, RFID's ability
to identify the security gap will allow focused efforts to prevent
it in the future. By being able to track individual units, RFID tags
will reduce dispensing errors thus increasing patient safety. The
tracking enabled by RFID will greatly reduce product diversion, and
the data coded in the RFID tag will make counterfeiting and product
diversion nearly impossible.
RFID Future in
Smart Tags: The RFID Future in smart tags has already begun in
numerous companies. They have given this new technology a high
priority in their business strategies. Wal-Mart, one of the world’s
largest retail companies, has already informed its suppliers that
the company expects all items delivered to its stores to carry RFID
tags by 2006. Germany’s Otto Versand, one of
Europe’s largest mail-order
companies, has been gathering experience with the smart tags in its
distribution centers, with the focus on inventory management.
German
drugstore discount chain “dm” (Drogeriemarkt) is also testing the
technology to see how the company can track palettes, boxes and
individual items more effectively. British upscale retailer Marks
& Spencer has meanwhile equipped all 3.5 million shipping crates
with RFID tags in six of its local distribution centers. Following a
joint RFID test with the U.S. shaving product
company Gillette, British retailer Tesco has begun testing the use
of the smart tags in conjunction with “smart shelf” technology,
which alerts staff when merchandise needs to be
replenished.
