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

Use of RFID among Logistics Companies is Increasing

Mark Roberti’s blog in RFID Journal referenced an interesting article that  appeared June 27 in the magazine DC Velocity. The article describes how logistics companies are increasingly turning to RFID-based solutions to streamline operations. DC Velocity, in conjunction with Baylor University and Bryant University surveyed 175 supply chain and logistics companies to ascertain their existing and planned usage of RFID-based solutions.

Quoting both the original article and Roberti’s blog, there are some interesting take-aways in the article:

• About 33% of the survey respondents are already using, piloting, or in the midst of implementing RFID technologies in their logistics operations. Another 27 percent are considering implementing RFID in the next two years.  That represents nearly 60% of the respondents.
• The majority of those applying or planning to apply RFID solutions are doing so to streamline internal operations.  59 percent of the survey respondents who already have some sort of RFID experience are focusing their implementations on internal improvements.
• 43 percent see it as a strategic move to improve efficiencies of multiple, connected processes within the company.

While we are also finding increased interest in applying RFID to improve internal operations, we are actually seeing a significant interest in supply chain applications that span multiple companies, particularly in the perishable and pharmaceutical market where condition monitoring is important.  We’re finding that it is increasingly important for cold chain companies to have documented chain-of-custody information for goods as they move through the supply chain.

It’s an interesting article and blog post by Mr. Roberti – well worth the read.

 

Kevin Payne

Senior Director of Marketing

 

“RFID in Construction” Video Replay with HCSS

Learn how HCSS – a leading solution provider for the heavy construction industry, is using RFID to improve load counting and deliveries at worksites.  The replay of the February 15 RFID Journal Virtual Event “RFID in Construction” can be found here.  It’s an informative 20 minute session featuring Jim West and Jeff Kimmel of HCSS, and Peter Mehring of Intelleflex.

Let me know if you find it of interest!

Kevin Payne

Senior Director of Marketing

RFID Market Poised for Growth

A new report published by Global Industry Analysts states that the RFID market is poised for strong growth…the analysts estimate a $12.7 billion market for RFID by 2015.  The report confirms that RFID remains strong in core markets such as supply chain management and cargo tracking, among others.  The report also cites that new applications for RFID, including asset management and product tracking in retail, will represent additional growth.

Despite the recession, the RFID market grew over the last few years because RFID can help improve operational efficiency, reduce costs and provide competitive differentiation.  Even when money is tight, the ROI for many RFID implementations still makes solid financial sense.

While interest in RFID remains strong, we’re still seeing some hesitation around the cost and functionality of active and passive RFID.  On a recent RFID Journal Virtual Event titled “RFID in Construction” presenters referred to projects that started but were either stopped or delayed because the cost of active tags was prohibitive or the performance of passive tags was too limiting.  We believe ISO/IEC standards-based battery assisted passive (aka semi-passive or semi-active) successfully addresses these issues.  By cost-effectively delivering read ranges of 300 feet, the ability to reliably read inside packaging and containers, and on-tag memory for capturing and storing information about an item’s history or condition, Battery Assisted Passive RFID further enhances the value proposition and should encourage more rapid adoption.

The “RFID in Construction” virtual event includes a case study showing how HCSS is applying Intelleflex RFID solutions to improve load counting and tracking at remote and mobile worksites.  You can view the HCSS case study and other presentations from this virtual event on the RFID Journal website.

Here’s to market growth in 2011!

Kevin Payne

Senior Director of Marketing

RFID in Construction – Online Event

On Tuesday, February 15, RFID Journal is hosting a free virtual event “RFID in Construction“.  Among other content, this two hour online event features a presentation by HCSS and Intelleflex:

Automating Load Counting With RFID to Improve Accuracy
Counting and tracking vehicle loads into and out of a construction yard or work site has typically been a manual, error-prone and-time consuming process. Manual processes inhibit productivity and increase costs. Learn how new applications, coupled with battery-assisted passive (BAP) RFID technology with superior range and portability, automates the process in order to improve efficiency, accuracy and profitability.

You can learn more about the virtual event and register for it here.

How are you applying RFID to worksite and construction applications?  Please let me know.

 

Kevin Payne

Senior Director of Marketing

Intelleflex