Pros and Cons of Rfid Technology

California Department Of Labor Overtime - Pros and Cons of Rfid Technology

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I. Rfid Advantages

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California Department Of Labor Overtime

Radio Frequency Identification provides a considerable service that is capable of revolutionizing the way associates track products. There are many benefactors of this technology: the military, retailers, suppliers, consulting firms, producers of the technology, and consumers. Rfid provides associates with a better alternative to bar-coding because no line-of-sight is needed to read a pallet, a carton, or a stock with a Rfid tag. Rfid tags also contain data on the stock that is of course readable and accessible for the reader. Rfid will also begin to automate company's furnish chain, reducing labor costs, human error and time spent checking in products.

In 2005, manufacturers and suppliers requesting new bids from the troops must be Rfid compliant on four dissimilar levels: packaged operational rations, clothing, tools, and weapon law heal parts and components. The troops requires that all cartons and pallets are shipped with a troops Shipping Label which displays shipping data. The group of Defense has created the Rfid troops compliancy clarification as a way to help suppliers and manufacturers meet the military's new standards for Rfid. The program is run by Avery Dennison sell data Services, and they were commissioned by the Rfid troops compliancy Solution. Avery Dennison sell data Services sells the Rfid tags to associates which must be affixed close to the troops Shipping Labels to comply with group of Defense regulations.

The U.S. troops is salvage an great amount of money by using active and passive Rfid systems. By using Rfid for communication and communication systems in Iraq and Afghanistan, the troops is able to diagnose and fix problems much faster than before. The implementation of Rfid in just this area will save the troops close to half a million dollars this year. The U.S. Government has contracted Ibm to do study on the current Rfid being used currently in the troops and the potential future applications for Rfid in the military. The troops has been victorious in creating better visibility throughout their furnish chain increasing their productivity and stability.

Retailers and other associates that have a demanding furnish chain can gain an advantage on the field by using Rfid in the furnish chain. By demanding that all levels of their furnish chain be Rfid capable is a great investment. The productivity growth that follows the first venture and implementation for associates will pay for their investment. Wal-Mart was the first retailer to use Rfid in their distribution centers and warehouses, prompting many associates to consequent in their footsteps once Wal-Mart's success was realized.

Rfid is very victorious with sell associates because it improves productivity, saves on human labor costs, and gives associates real-time visibility with all their products. Rfid tags use an Electronic stock Code (Epc) which is an upgrade and a replacement for the Universal stock Code (Upc) system. "Epc has a 96-bit code that has digits to recognize the manufacturer, stock kind and the individual item. Manufacturers secure registration numbers & assign them to products. Each amount is unique to a given item."

The cost of a tag is everywhere between twenty-five to fifty cents. In the next five to ten years it could be reduced to five cents per tag. At some point in the near future tags could fall to one cent tempting associates to use Rfid tags on every stock in a store. Wal-Mart says that since their market now have Rfid, it makes it easier to keep store shelves stocked allowing employees to interact with customers.

Target was able to save on their venture for implementing Rfid, following in Wal-Mart's footsteps as Wal-Mart had already paved the way and suffered the pitfalls of implementing a new technology. In increasing to the lower implementation costs, many of Target's suppliers had already begun preparing for the switch over to Rfid assuming Target would consequent Wal-Mart. Target as a large retailer knows how prominent it is to be able to furnish real-time data on pallets, cartons and shipments up and down-stream straight through their furnish chain.

A break-through in Rfid technology was made by Intermec, Inc. In May of 2006, with new rugged and reusable Rfid tags. These tags can be written thousands of times; it can cope perilous chemical exposure, and withstands temperatures from -50 degrees Fahrenheit to 250 degrees Fahrenheit. In October of 2006, Intermec released a new version of the rugged, reusable Rfid tag, including wide-band antenna that can be used on any covering in any part of the world.

Rfid makes the business world seem like a smaller place, even associates like Wal-Mart who are very big and have a large integrated furnish chain. Rfid enables associates to be more productive with their time and space. associates that integrate some newer furnish chain technologies with Rfid could see great results. Combining auto-picking with Rfid would sacrifice man-power needed, time needed to move pallets and cartons around a warehouse, and time needed to send pallets to their proper destination. The goal of a company's furnish chain should be to sacrifice time needed to be productive, by automating as much of the furnish chain as possible. It reduces human error, and machines are capable of running twenty-four hours a day and cost less than human labor. The
application of Rfid for a large business like Wal-Mart or Target, as well as smaller sell market can ensure a better shopping touch with more in-stock items and a more knowledgeable store.

The Rfid market is booming and many technological associates have gotten in the game producing Rfid parts and systems. In many cases being a producer of Rfid components and systems also allows you to come to be a consulting firm for the technology. Hewlett Packard (Hp) is one of the largest associates developing Rfid systems. Hp's goal is to make it as easy and affordable as potential for a business adopting Rfid technology. Hp has touch in the Rfid field, as they were one of the early adopters of the technology and have been very victorious integrating it into their business. Hp began with two larger clients, Hasbro (produces children's toys) and Conros (a large Wal-Mart supplier). Hewlett Packard has created two Rfid Centers for Excellence, one in California and one in Taiwan, to demonstrate new potential uses for the technology, as well as how it can be implemented into a business. More centers are slated to be opened throughout the world, including Great Britain, Singapore, and Tokyo Rfid Centers for Excellence.

The Rfid market sits at almost one billion dollars in 2006 and has varying estimates as to the growth potential of the market. Estimates of Rfid market size in 2008 vary everywhere from .3 billion by Idc, to .2 Billion by the Yankee Group. As shown in outline 1 in the appendix, most of the commerce is made up of sales of hardware, tags, readers and other corporal products of Rfid. almost 20-25% of the market is made up of consulting work for the technology and the last 5% is made up of software for Rfid. The two biggest areas firms are concentrating on are the output and consulting sides of Rfid.

The biggest challenges for producers and consultants alike are the reliability and durability of Rfid systems and products. It is hard to simulate the wear and tear a stock will touch over time. Hp has made testing Rfid products one of their benchmarks, providing intense field-testing of Rfid to ensure its durability and quality. A competitor of Hp is Ibm, who according to Amr study is the market leader in Rfid. Ibm has over eleven years touch working with Rfid, and like Hp, they were an early adopter of Rfid technology. The advantage that Ibm has over Hp is there world-renowned consulting services, coupled with their immense networking capabilities. Ibm's services promise more results than Hp's Rfid systems mainly because of Ibm's consulting expertise. Ibm works with associates to locate the best avenues to implement Rfid, attempting to maximize Return on venture (Roi) by reducing one someone per shift from manually tracking products allowing them to focus on value-added manufacturing activities. Ibm also focuses on other ways to heighten Roi including, gift a one-time savings of 0,000 in operating costs, continuous fabrication line operations, better customer service providing real-time data on products, and less errors and delays cause by human error.

Rfid began to take off once associates like Wal-Mart and Target, and the U.S. troops demanded that their top 100 suppliers must adopt Rfid technology. Many suppliers were not ready for a move like this, a move that would thoroughly retrofit their current operations at a high cost to the supplier. There were some suppliers that welcomed the turn in technology and already began implementing Rfid in anticipation of Wal-Mart and the U.S. Military's interrogate that their suppliers adopt the new technology. Wal-Mart demanded that their top one hundred suppliers would need to be Rfid ready by January 2005, and to Wal-Mart's surprise, twenty three extra suppliers have volunteered to make the turn to Rfid. There is a new generation of tags that hit the market in 2005, called the Gen 2 Standard, which make Rfid more sharp to suppliers who have no Rfid systems in place. The Gen 2 Rfid improves on the first generation of Rfid by increasing read times, increasing read ranges, and read tags more accurately.

Suppliers and manufacturers will notice the benefits of implementing Rfid into their organizations streamlining parts of their operations. Return on venture is the most prominent factor for a business implementing Rfid. Suppliers will see their Roi growth as human labor hours are decreased, human errors are decreased and interoperability is increased. Rfid increases the visibility of the suppliers so they can do their job in real time, assuring that the literal, package is sent to the literal, location. It also saves money in the long-term for manufacturers and suppliers because Rfid will save time spent inventorying and tracking products. An advantage for suppliers and manufacturers using Rfid is customization of products in a shorter duration of time. Smaller suppliers and manufacturers will have a harder time implementing Rfid, as costs range from 0,000 to million to implement the technology, but as costs go down more associates will adopt Rfid.

Rfid does have other potential advantage for suppliers that could give them invaluable information. For Wal-Mart suppliers, readers are set up at the back door so suppliers know when their shipments have arrived increasing visibility for both entities. A second reader is settled at the entry to the sales floor so the victualer can see what is on-hand on the sales floor and in the stock room. This will allow the victualer to see which products sell better than others so that they can be replaced, and it also allows the victualer to build more literal, sales forecasts. A secondary advantage of Rfid is that the promotions that merchandisers spend a lot of money to set up are often left in the stock room for too long or are improperly placed. Now merchandisers and vendors can make sure their promotions are being handled correctly. Suppliers and manufacturers have the potential to save money on output costs, while making money on customized products.

Consumers should be the greatest winner with Rfid being implemented throughout a company's furnish chain. In the long-run, market will save money throughout their furnish chain, thus bringing down costs to consumers. Consumers should also expect to find more helpful and more informative customers service with associates that have Rfid. These associates now have real-time data to share with the customer. A consumer complaint about sell market has all the time been that there are too many out-of-stock items; however, with Rfid in place many of these market should see a considerable decrease in out-of-stock items. Having Rfid tags on confident products can also make people's lives much easier, such as a microwave that is a reader and recognizes the tag of the food you put in and will automatically cook it according to the directions on the tag. It also helps environmentally because associates will use resources more efficiently, benefiting everyone. Once Rfid tags are able to be used on food products it will make a recall on a confident item much easier and it could potentially save lives.

Consumers use Rfid everyday and many do not comprehend the benefits they are receiving from the technology. Contactless payment is a developing technology, the card being used contains a tag and the payment area contains a reader. Mobil and Exxon use a "Speedpass" as their contactless form of payment allowing customers to wave the card in front of a reader to pay for gas or anything in the convenient store. Visa and Mastercard are the two biggest developers of this technology, claiming that it will advantage everybody from consumers to businesses. It allows people to have preset money on a card (either debit or credit) which decreases waiting time at check-out stands and increases loyalty to associates that offer this feature. other use of smart cards is keyless entries, which is becoming a popular trend in America, using just a card and swipe it over the sensor to allow entry. Rfid is a useful technology for consumers salvage time and gift conveniences former bar codes, reputation cards and keys cannot offer.

Rfid contains many advantages over former ways of coding pallets, boxes and products. It allows for non-line of sight reading of the tag which market all the stock information. Rfid reduces human labor costs and human errors straight through the furnish chain salvage associates money, as well as reducing theft in the store and warehouses. Rfid can save lives as well if there is a recall and the recalled food item or stock is tagged, then it would be easier to secure all the units.

Ii. Disadvantages

Radio Frequency Identification has been around for over fifty years, but it has been the rapid development and deployment of the technology over the last five years that has raised people's awareness and comprehension of the technology. While there are many potential benefits for Rfid, there are many pitfalls as well. Every level that could advantage from Rfid can also reap negative rewards from the technology.

The U.S. troops was one of the early adopters of the technology using it for over ten years in a itsybitsy area of their operations. In 2003 they upgraded their usage of the technology by demanding that all suppliers must affix a Rfid tag to every pallet, carton and big-ticket item being shipped to the military. The biggest problem the troops faces is an issue of security. With unblemished stock data on a tag it is easy for an enemy of the United States to pull data off a tag. This could consequent in loss of life of U.S. Soldiers or even U.S. Civilians if the wrong stock ended up in the wrong hands. The tags could fill in enemies of potential weaknesses and strengths of our troops and give them a view on how to attack us at our weakest points.

Large associates like Wal-Mart and Target who use Rfid face many potential problems with the technology. Rfid has no proven infrastructure making it difficult for suppliers to keep up with these company's demands to come to be Rfid-ready. If the suppliers cannot effectively implement Rfid into their business, then retailers cannot fully view their furnish chain. If retailers cannot get all their data in real time across their entire furnish chain, then the issues they are trying to solve will remain problems. Out-of-stock items, first-in-first-out products and last-in-last out products will still cause problems for these large retailers.

Epcglobal is a start to an international standards body for Rfid. It has yet to be stylish by the International assosication for Standardization (Iso) and there is still not a global frequency standard. While 900 Mhz appears to be the best frequency due to its long read-range capability, 13.56 Mhz is still used delaying the standardization of global frequency for Rfid. High costs of Rfid implementation is the think many mid-size and smaller retailers have not adopted the technology. The short-term outlook for associates who use Rfid isn't impressive, although long-term benefits will be realized.

Privacy issues are the amount one pitfall for Rfid and retailers. As long as the tags are only affixed to pallets and cartons then the retailers would not have any definite data on the consumer. However, when Rfid tag prices fall, associates like Wal-Mart and Target plan on using Rfid tags on individual products which they can trace consumer's buying habits and other data consumer's wish to keep private. It was privacy issues that force Benetton to cease their pilot Rfid system. They wanted to embed a tag in articles of clothing to stop theft, settle consumer buying habits and keep their list at an suitable level. Privacy advocate groups such as the Consumers Against Supermarket Privacy Invasion (Caspian) fight associates using Rfid to track consumer behavior. A study showed that up to 78% of America was against Rfid based solely on privacy issues. It will be difficult for associates in the future to tag individual items without a group outcry without some form of security for the public's privacy rights.

Consumers have the largest disadvantage of any other entities complex with Rfid technology. There are five privacy issues that consumers must try to protect themselves from: hidden placement of tags, unique identifiers for objects worldwide, immense data aggregation, hidden readers, and individual tracking and profiling. hidden placement of tags by associates is an easy way to get data from consumers. The consumer will feel safe buying a stock with no knowledge of an Rfid tag embedded in their clothing. These tags theoretically could track a someone around the world if there were readers in definite locations throughout the world. Personal data may also be embedded in these tags giving data as detailed as your curative history. Prada and Swatch use embedded tags in their clothing, and Benetton did as well, but a boycott of Benetton was victorious and they removed their tags. There is no law against associates embedding tags, and only California and Utah have made official requests to turn the situation.

Companies who use Rfid can compile immense amounts of data on consumers, including stock likes or dislikes, buying power or even prescribe history. Rfid makes it easy to amass this data and to prescribe correlations. If a corporation owns many market they can integrate data between associates and create new data on buying habits.

Hidden readers violate people's privacy much the same way hidden tags do. Gillette and Accenture are introducing "silent commerce" which embeds tags on people's products and readers in strategic locations without the consumer's knowledge. These associates have experimented with dissimilar reader locations ranging from hidden carpeting locations to shelve locations and even hidden in floor tiles. Readers could even be installed in doorways on road lights, everywhere that people have to pass through, and instantly all data embedded in the tag is broadcast to the reader. If this were to happen privacy would be impossible because you would never know if the products you have contain tags, and you never know when you are within proximity to a reader.

The disadvantages of Rfid hinge mainly on privacy concerns, technological imperfections, cost of the technology and no proven way to set up an Rfid law for a company. The government and corporations are the two groups that offer the most concern for privacy issues. hidden tags and readers threaten to take away human mystery, gift a world where people see, feel and hear only what the government and large corporation want people to.

Iii. future of Rfid

The future of Rfid is uncertain, however, the technology is here to stay. associates have many obstacles to overcome to make the technology a feasible option to be implemented. Privacy issues and will persist, although cost for Rfid systems will decrease. In order for Rfid to be successful, associates must work with privacy advocate groups to build a fair way to implement Rfid without alienating their customers.

Technology will continue to build for Rfid and many new applications will be realized. Automation will be a side-effect of Rfid development, in the furnish chain and in everyday activities. Contactless payment methods are already available, as well as automated keycards to open doors. Rfid tags installed in cars with readers on the roads and freeways will alert the authority if you are breaking the law. Supermarkets will eventually be able to comprehend their shopping cart checkout law once prices fall to a more affordable price. Fresh foods, metals and liquids will all be Rfid compatible in the near future. If privacy issues are not watched closely, people will come to be tagged and there will all the time be someone watching and analyzing every person's decisions.

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