How real is RFID in SA?

There are two types of RFID systems operating in SA. The first one is the closed loop, where RFID technology is cost-effectively used to track and trace larger items within an organisation. For example, a medical waste disposal company and packaging producer use RFID tags and readers to track items through their lifecycle. These tags are then rewritten to and reused.

The second type of RFID system, which will occur in the near future, will be driven by compliance tagging. As tagging is adopted by large retailers in the US and Europe, South African exporters will be forced to use RFID track and tracing systems on a pallet level in order to comply with their customers` requirements.

Compliance tagging is one of the key drivers in the marketplace, where industry, led by retailers in the US, demand RFID track and tracing on a palletised level. As this trend proliferates worldwide, the cost of the RFID tags will dramatically reduce to make it an affordable and viable option.

I predict that in two years, RFID will be used extensively on a pallet and case level, and in 10 years on an itemised level worldwide.

Wal-Mart Stores in the US has mandated that by January 2005 all pallets from its top 100 suppliers must be tagged.

RFID-enabled systems complement rather than replace traditional barcode-based data collection systems. For the foreseeable future, I do not see RFID replacing the barcode, but in fact working alongside it. As the cost of RFID tags drops, they will be used at pallet and case level. However, I believe the barcode will still be used at item level for many years to come.

I predict that in two years, RFID will be used extensively on a pallet and case level, and in 10 years on an itemised level worldwide.

Andrew Fosbrook, MD, ProScan Systems

Barcode and vision systems rely on optics and require a relatively clean and moisture-free environment. RFID tags, which do not use optics, do not require a clean environment or direct line of sight. RFID handles dirty, oily, wet or harsh environments. As RFID tags and readers have no moving parts, they require no maintenance. RFID tags can be read and written to, are intelligent, and carry larger amounts of data compared to other identification systems. Unlike barcodes, RFID tags are virtually impossible to copy or counterfeit.

In addition, RFID is as fast as the tag can be read and can communicate back in milliseconds. RFID systems can also read multiple tags at once, much faster than barcode.

Many systems in the near future will use a combination of barcoding and RFID tags through the use of barcode labels with embedded RFID tags in order to cover both systems and allow users to upgrade in the future.

Originally, RF tags were designed to operate like a barcode or number plate as read only, with a server providing the information. This technology was rejected by leading US retailers in favour of read and write or `one-up-one-down` system, which would provide full visibility through a company`s supply chain. This technology was also driven by the food industry and health authorities in Europe.

Ideally, companies should provide read and write tags, which means the user can add information to the tag or write over existing information when the tag is within range of a reader, or interrogator, as many times as desired.

Here`s an example of how a tag provides full visibility through a company`s supply chain: An RFID tag is embedded in a component item. The item tag can then be read and written to during the manufacturing process in order to gather and exchange work-in-process data. The same tag can then be read or written to by shipping personnel at the manufacturer`s shipping dock to release the original manufacturer`s item from their inventory. Shipping information can then be written to the item tag by the transportation carrier as it`s transported from the manufacturing plant.

This process continues through the supply chain. Finally, that same individual item can be read and written to at the retail store level, providing the retailer with additional pricing, receipt date, inventory and theft prevention information.

A major move in the up-take of RFID worldwide has been compatibility and the setting of standards.

Leading manufacturers and technology providers of data collection and RFID recently submitted an RFID protocol definition that will pave the way for rapid adoption of a new worldwide RFID standard - known as EPCglobal UHF Generation 2.

The proposed definition meets user requirements outlined by the world`s leading retailers and others, including the US Department of Defence. It fully meets user requirements, works worldwide, meets international standards and provides a path to low-cost RFID tags and readers.

Together these companies represent multiple sources for every aspect of a fully implemented RFID system - chips, tag and readers - as well as manufacturers of barcode and 2D symbology equipment, wireless networks, mobile computers and terminals, software companies and RFID system manufacturers and integrators.

EPCglobal UHF Generation 2 RFID technology has rewritable non-volatile memory, which adds the capability to change and update the information on each tag as it proceeds through the supply chain, providing new levels of up-to-date information for better decision-making.

RFID data collection technology is no longer hype. It`s a reality, although in its infancy. The need, demand, technology and expertise are all available.

The current state of RFID can be compared to barcoding in the late 1970s and early 1980s. We have the early adopters who`ve benefited from the advantages of RFID technologies within their operations for the past few years. Compliance demands and industry standards are the key drivers that will take care of the other inhibitors, such as costs and compatibility issues, to bring it to the current sophisticated levels of the barcoding industry, but in a much shorter time.