Radio frequency identification (RFID)-enabled data collection systems have been widely described as the next big thing for supply chain management and the likely replacement of bar coding systems.
However, a local RFID solution vendor has warned business against being misled.
"Although RFID has enormous potential for automating processes, business needs to be aware of the technology`s limitations," says James Briggs, SCM Solutions director.
Briggs blames the media hype surrounding the technology for the fact that RFID has been oversold. He says unrealistic expectations have been created because there has not been enough emphasis on the limitations of certain RFID technologies such as low penetration and signal interference.
"The classic example of a trolley of goods being scanned at the checkout and the total cost automatically calculated is a long way from being achieved because of the limitations of RF penetration, especially where metal or liquids are concerned."
According to Briggs, the most common use of RFID systems locally is in closed-loop implementations to track and trace high value items, particularly in the fashion, medical and automotive industries.
He emphasises that for low-cost goods, tagging is only at pallet, container and case level, and that bar coding is likely to remain dominant at an item level for a long time to come.
"Only in situations where 100% accuracy of tag reading can be guaranteed is RFID a viable and cost-effective data collection method and therefore organisations must be sure they are choosing the appropriate equipment for specific applications."
Despite the limitations of standard RFID tags using integrated chips and the new ultra-high frequency standard proposed by EPC Global, Briggs says cost-effective applications of RFID-enabled systems have been identified and implemented using alternative RF technologies where necessary.
He says organisations should ensure they are aware of the latest developments in RFID technology to avoid "burning their fingers" by investing in solutions that do not provide the level of accuracy needed to be cost-effective and deliver a reasonable return on investment.
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