Supply Chain Digest: 7 Reasons why RFID will dominate the Supply Chain

 

More easily tracking goods in motion is another benefit of RFID

Supply Chain Digest is bullish on RFID.  In a July 27th article titled The Seven Reasons RFID will Eventually Win in the Supply Chain, states that they believe RFID will dominate over bar codes and other auto-ID technologies.  Interestingly, they don’t think this will be due to apparel-related applications that were once thought to be RFID’s nirvana but rather due to these seven advantages:

  1. Basic technical advantages of RFID over barcodes.
  2. Decreasing price points that will enable new applications.
  3. The desire to eliminate the manual scanning required with barcodes.
  4. Automated (RFID) processes will create competitive advantage and draw others into adoption.
  5. Increased regulatory requirements, especially relative to food and pharmaceuticals.
  6. The need to track lineage, chain of custody and inventory status at higher levels.
  7. The increasing use of RFID in smart phones and payment systems.

The article includes a handy chart that compares bar codes and RFID.  The challenge with this chart is that it only compares active and passive RFID against barcodes.  It doesn’t include battery assisted passive RFID.  This is troublesome as battery assisted solutions can more rapidly – and positively – address some of the reasons the article cites for improving adoption including lower costs, an improved ability to track chain-of-custody and creating competitive advantage.  Still, the article makes several valid points and is well worth the read.

 

Kevin Payne

Senior Director of Marketing

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