RFID still facing barriers

The cost of radio frequency identification (RFID) products has come down, and the technology is no longer reserved for big business, says Zebra Technologies regional manager Andrew Robinson. However, he notes that there are still many barriers to its uptake.

The main advantage of RFID technology is that it offers companies real-time monitoring of goods, says Robinson. "You can find out exactly where any of your products are at the touch of a button. Obviously this offers a massive security benefit, but also costs saving in that no products go missing, and punctual deliveries become easier to achieve. RFID tagging can also survive environments hostile to bar codes."

Robinson adds that a Proctor and Gamble case study indicated a 40% increase in pallet loading rates after switching to RFID.

While RFID tagging is more widely available today, there are still a number of barriers to overcome. One of the main issues is the lack of an international standard, he says.

"At the moment, RFID is just an enabling technology. There are no physical standards in place. Whoever implements it could be pioneering it, but at the same time, they risk producing something that simply isn`t accepted due to lack of international standards."

It is because of this lack of standards that RFID printers are mainly ideal for internal company use, says Robinson. "As soon as you send something elsewhere, what standard is that tag complying to?"

On the global market, there are a number of initiatives to put standards in place, he adds. "Walmart has told its top 100 suppliers that it will set RFID pallets as a prerequisite to business. By 2007, they will extend that to all of their pallets. I think this initiative will go a long way towards introducing standards."

Robinson adds that a number of other companies are also working towards a similar goal. "There are a lot of proof of concepts going on at the moment on RFID. It`s like anything: the industry will have leaders, and there will be followers."

Another factor in the uptake of RFID is the significant cost involved, meaning it is unlikely to ever be viable for low-cost goods, says Robinson.

"The problem is that 60% of the cost is involved in the manufacturing process. This means that driving up demand won`t necessarily bring down the price. Still, I think RFID tagging is possible on more expensive products, because the additional cost can be added onto the product.

"But I don`t think you`ll ever get away with adding, say, R6 onto a chocolate bar."

In SA, RFID uptake is particularly complex, says Robinson. "We`re a bit of an anomaly. On the one hand, we are a First World country that wants to make use of the efficiencies of technology. On the other hand, we are a Third World country that wants to be more labour-intensive."

With the complex South African market in mind, the company has launched a range of lower-cost RFID printers that open the technology to small and medium enterprises, says Robinson. "The price ranges from around R11 000 for the entry-level model up to R40 000 for the top of the range."

The printers are designed for use where space-efficient low-volume applications are required.