Pros and cons of RFID technology

I. RFID Benefits

Radio Frequency Identification is a valuable service to revolutionize the way business is able to track products. There are many benefactors of this technology: the military, retailers, suppliers, consulting firms, manufacturers of the technology, and consumers. RFID offers companies a better alternative to the bar code, since no line-of-sight is required to read a pallet, a carton or a product with an RFID tag. RFID tags alsocontain information about the product that easily readable and accessible to the reader. RFID technology will also begin to enterprise supply chain automation, reducing labor costs, human error and time for check-in products.

In 2005, manufacturers and suppliers have any new offers from the military to be RFID-compliant at four different levels: operational packaged food, clothing, tools and weapons system parts and components. The military requires that all cartons and palletsship with a Military Shipping Label, which displays the navigation data. The Department of Defense, the RFID military compliance solution as a way to help suppliers and manufacturers to meet the military created new standards for RFID. The program will be run by Avery Dennison Retail Information Services, and they were taken from the RFID military compliance solution in operation. Avery Dennison Retail Information Services sells the RFID tags for companies that must be applied in the vicinity of the military --Shipping labels meet Department of Defense regulations.

The U.S. military is so saves a lot of money by the active and passive RFID systems. Through the use of communication and transportation possibilities for RFID systems in Iraq and Afghanistan, the military situation is to diagnose and fix problems much faster than before. The introduction of RFID in this area will only save the military close to half a million dollars this year. The U.S. government has asked IBM to do research onOn the current RFID is currently used in the military and the possible future applications for RFID in the army. The military has been successful in creating better visibility into their supply chain to increase their productivity and stability.

Retailers and other companies that have a sophisticated supply chain can gain an advantage on the field by getting into the supply chain RFID. By demanding that all levels of the supply chain RFID is capable of is a considerable investment. TheIncrease productivity, that the initial investment and implementation of the business are required to follow their investment pay. Wal-Mart was the first retailer in its distribution centers and warehouses RFID application, following which many companies in their tracks when Wal-Mart's success has been realized to follow.

RFID is very successful with commercial enterprises, because it improves productivity, saves costs of human labor and gives companies real-time visibility of all their products. RFID tagsUse an Electronic Product Code (EPC), which is an upgrade and a replacement for the Universal Product Code (UPC) system. "EPC has a 96-bit code to call the number that has the manufacturer, product category and the individual items. Manufacturers will mark and arrange these products. Each number is unique to a particular item."

The cost of one days is somewhere between twenty-five to fifty cents. Be reduced in the next five to ten years to five cents per day. In somePoint in the near future could fall tags, tempting companies to use one cent RFID tags on every product in a store. Wal-Mart says that because their business now have RFID makes it easier to keep shelves stocked allows employees to interact with customers.

The goal was able to save on their investment in RFID implementation, once it's in Wal-Mart tracks such as Wal-Mart had already paved the way and let the pitfalls in implementing a new technology. In addition tothe lower cost of implementation had begun, many of the vendors, the goal is already preparing for the transition to RFID adoption would be followed by Target, Wal-Mart. Target as the big retailers know how important it is capable of data in real time on pallets, cartons and shipments and provide down-stream through its supply chain.

A breakthrough in RFID technology has been made by Intermec, Inc. Tags in May 2006, with new, robust and reusable RFID. These tags can be written thousandsTimes, it may hazardous chemical exposure to residents and also temperatures of -50 degrees Celsius to 250 degrees Fahrenheit. In October 2006, Intermec has published a new version of the rugged, reusable RFID tag, including broadband antenna that can be used on any surface in any part of the world.

RFID makes the economy seem like a small place, even companies like Wal-Mart, which are very large and have a large integrated supply chain. RFID allows companies to moreefficient with their time and space. Companies to combine some of the newer supply chain with RFID technology could see good results. Combining the Auto-picking with RFID would reduce man to power is needed, the time required to move pallets and cartons at a camp, and needs the time to send pallets to their correct destination. The goal of a company's supply chain should be to reduce the time needed to be productive, by automating as much of the supply chain as possible. It reduces human error andMachines are capable of running twenty hours a day and costs less than human labor. The
Use of RFID in a big company like Wal-Mart or Target, as well as smaller retail stores can store a better shopping experience with in-stock items and more knowledge.

The RFID market is booming and many technology companies have in the game to get the production of RFID components and systems. In many cases, a manufacturer of RFID components and systems is you can alsoa consulting firm for the technology. Hewlett-Packard (HP) is one of the largest companies developing RFID systems. HP's goal is it so easy and affordable as possible for a company on RFID technology. HP has experience in the area of RFID, as they were an early adopter of technology and were highly successful and integrated them into their business. HP began with two major customers, Hasbro (toys produced) and Conros (agreat Wal-Mart suppliers). Hewlett Packard has two RFID Center for Excellence, one created in California and one in Taiwan to demonstrate new uses for the technology and how it can be converted into a business. Other centers are planned for throughout the world be opened, including Britain, Singapore and Tokyo RFID Center for Excellence.

The RFID market is located at approximately one billion U.S. dollars in 2006 and has different estimates, the growth potential of thethe market. The estimates of the RFID market size in 2008 vary widely from $ 1.3 billion by IDC, to $ 4.2 billion by the Yankee Group. As shown in Figure 1 in the Annex, is the largest part of the industry of the sale of hardware, tags, readers and other physical products of RFID. Approximately 20-25% of the market is the consulting work for the technology and the last 5% of the software for RFID-up were made. The two largest areas of business focus on production and consulting pagesof RFID.

The biggest challenges for manufacturers and consultants, both the reliability and durability of RFID systems and products. It is difficult to simulate, to know the wear and tear of a product over time. HP does provide a test of RFID products to their standards and offers extensive field testing of RFID on its durability and quality. A competitor from HP, IBM, according to AMR Research is the leader in RFID. IBM has over eleven years of experience in working withRFID and like HP, they were an early adopter of RFID technology. The benefit is that IBM has about HP there are world-renowned consulting services, coupled with their immense network functions. IBM services promise greater results than RFID systems from HP mainly because of IBM's consulting expertise. IBM works with companies to find the best ways to implement RFID to try to return on investment (ROI) by reducing one person per shift from hand-tracking maximization Products with which they focus on value-added manufacturing activities. IBM is focused to improve in other ways, including ROI and provides a one-time savings of $ 230,000 in operating costs, continuous production line operations, better customer services provide real-time information on products and reduce errors and delays cause by human error .

RFID began to take off when companies like Wal-Mart and Target and the U.S. military requested that its top 100 suppliers adopt RFID, to> Technology. Many suppliers were not ready for a step like this, a step that would complete the ongoing business retrofitting at a high price to the vendor. There were several vendors that welcomes the change in the technology and already started in anticipation of the implementation of RFID, Wal-Mart and the U.S. military's demand that its suppliers adopt the new technology. Wal-Mart requested that its top be a hundred vendors of RFID ready in January 2005 and would requireWal-Mart, by surprise, twenty-three additional suppliers have been willing to make the change of RFID. There is a new generation of tags that the market hit in 2005 when the Gen 2 standard, to enhance the attractiveness of the RFID suppliers, RFID systems do not have available. The Gen 2 RFID to improve the first generation of RFID read by the increase in times of increasing reading ranges, and tags to read more.

Suppliers and manufacturers of the benefits of RFID note in the implementation of theirOrganizations streamline parts of its activities. Return on investment is the most important factor for a company implementing RFID. Suppliers will increase their return on investment than the manpower to see hours have declined, reducing human error and interoperability will be increased. RFID increases the visibility of the suppliers so that they can do to ensure their work in real time, that the correct package will be sent to the right place. It also saves money in the long term for manufacturers and suppliersbecause RFID inventory and save time spent tracking products. One advantage for suppliers and manufacturers using RFID is the adaptation of products in a shorter period. Smaller suppliers and manufacturers, it will have heavy deployment of RFID, as the cost of $ 100,000 to $ 5 million to implement the technology, but as costs drop and more companies will adopt RFID.

RFID is to give another potential benefit to the provider could, that they are of inestimable valueInformation. For Wal-Mart suppliers, readers are set up at the back door so that suppliers know when their shipments arrive, the visibility for both companies. A second reader is placed at the entrance to the shop, so the provider can see what on-hand in the showroom and the warehouse. This allows the suppliers, what products are selling better than others, so that they can be replaced, and it also allows the suppliers to develop more accurate sales forecasts. Asecondary benefits of RFID is that the actions build merchandisers that spend a lot of money, are also inserted at the warehouse too long or improperly left of it. Now, merchandisers and suppliers to ensure that their actions will be dealt with properly. Suppliers and manufacturers have the potential for money to save on production costs to earn money while on customized products.

Consumers should implement the ultimate winner with RFID across a company's supplyChain. In the long run saves money is the whole supply chain to store away in order to reduce the cost to consumers. Consumers should also expect more useful and informative customer service with companies that RFID can be found. These companies now have to share data in real time with the customer. A consumer complaint about retail stores has always been that there are too many out-of-stock items should be maintained with RFID place in many of these businesses will see a significant dropOut-of-stock items. Since RFID tags on certain products and the lives of the people can be much easier, such as a microwave oven that a reader is and recognizes the day of food you made and will automatically cook according to directions on the day. It also helps the environment because the companies will make more efficient use of resources to benefit all. When RFID tags are able to be used on foods, it will make a callback to a point much easier, and it could saveLife.

Consumers are using RFID to know everyday life and not many: the benefits they receive from the technology. Contactless payment has developed a technology whereby the card being used contains a tag and the payment section contains a reader. Exxon Mobil and use a "speed pass" as a contactless form of payment, allowing customers to pay the card against a reader shaft for gas or anything in the store. Visa and Mastercard are the two biggest developers ofthis technology, claiming that it will benefit all consumers and businesses. It allows people to preset for money on a card (either debit or credit card), which takes time waiting at check-out stands and increases loyalty to the company that can offer this feature. Another use of smart cards is keyless entry, is to become a powerful trend in America, with just one card reader and swipe it across the sensor for entry. RFID is a technology beneficial to save consumersTime and offers comfortable traditional bar codes, credit cards and keys can not.

RFID has many advantages over traditional forms of coding pallets, crates and products. It allows not in the line of sight reading the tag, which stores all product information. RFID reduces costs of human labor and human error in the entire supply chain saves the company money, as well as reducing theft in the stores and warehouses. RFID can save lives if there is a recall andrecalled food or product is, then it would be easier to collect all the units.

Disadvantages II

Radio Frequency Identification has been around for over fifty years, but it has the rapid development and deployment of the technology over the past five years, people's awareness and understanding of technology has been raised. Although there are many potential benefits of RFID, there are many pitfalls and. Each level that could benefit fromRFID can also reap negative rewards from the technology.

The U.S. military was an early adopter of the technology to use it for over ten years in a limited range of their activities. In 2003 they expanded their use of technology by requiring that all providers of an RFID tag to each pallet, carton and big-ticket item must be shipped as bringing the military. The biggest problem is the military, is a question of safety. Throughout its entire product rangeAbout one days it is draw an enemy of the United States is simply to get information on a single day. This could be the loss of lives of U.S. soldiers, or even U.S. civilians, when landing the wrong item into the wrong hands. The tags can inform potential enemy weaknesses and strengths of our military and give them a vision of how to attack us in our weakest points.

Large companies like Wal-Mart and Target, the application of RFID will see many potential problems with the technology. RFID hasno proven infrastructure makes it difficult for providers to keep with the requirements of this society to become RFID-ready. If the provider does not effectively implement RFID into their business, then retailers can not fully see their supply chain. If retailers can not address all their information in real time over the entire supply chain, then the questions they are trying to solve, problems will remain. Out-of-stock items, first-in-first-out products and last-in, last out products will continue toProblems for these large retailers.

EPCglobal is a start for the international standardization organization for RFID. It must still be approved by the International Organization for Standardization (ISO) and there is no global frequency standards. While the 900 MHz frequency seems to be the best because of its long read-range capability, 13.56 MHz is still used, delayed the standardization of the global frequency for RFID. High cost of RFID implementation is the reason why many medium and smallerRetailers have not adopted the technology. The short-term outlook for companies that use RFID is not impressive, although long-term benefits to be realized.

Privacy issues are the number one pitfall for RFID and retailers. As long as the tags for pallets and cartons then the retailers would have attached no specific information for the consumer. However, if RFID fall day, the rates that companies like Wal-Mart and Target plan to use RFID tags on individual itemswhere they consumer buying habits of consumers, and other information wants to keep private lane. There were issues of privacy, the strength of its pilots not Benetton RFID system. They wanted to incorporate a day in the clothes, to stop theft, to determine the buying habits of consumers and keep their inventory at an acceptable level. Privacy advocate groups, such as the consumer against Supermarket Privacy Invasion (CASPIAN) battle company's RFID track consumer behavior. One study foundThat was down to about 78% of America against RFID exclusively on privacy issues. It is difficult to set aside for businesses in the future for individual items without a public outcry day without some form of protection for citizens' privacy rights.

Consumers have the greatest disadvantage of any other organizations involved with RFID technology. There are five questions of privacy that consumers have to try to protect themselves: Hidden placement of tags, unique identifiers for objectsWorldwide massive data aggregation, hidden reader and individual tracking and profiling. Hidden placement of tags by companies is an easy way to obtain data from consumers. The consumer will feel safe to buy a product without having knowledge of an RFID tag integrated in the clothes. These tags could theoretically follow a person around the world when it readers in certain locations around the world. Personal information may also be in these tags, the information is embedded asdetail how their medical history. Prada and Swatch tags embedded in their clothing, Benetton and did as well, but a boycott of Benetton was successful, and they removed the tags. There is no law against companies embed tags, and only California and Utah have made official requests to change the situation.

Companies that RFID can be used like large amounts of data on consumers, including product or compile dislikes, purchasing power, or even prescription history. RFID makes it easy tocollect these data and relationships to appoint. If a company has many operations the data between companies and new data can be combined on shopping patterns.

Hidden readers violate the privacy of the people doing the same manner hidden tags. Gillette and Accenture launch of "silent commerce", which include tags on products, people and readers at strategic locations without the knowledge of consumers. These companies have experimented with different locations between the readerCarpet secret places to places, and even floor tiles in the files hidden. Readers could be installed even in the doors on street lights everywhere, where people have to go through, and immediately all the information is embedded in the day, transfer the reader. If this had happened to privacy impossible because you would never know if the products that you have included tags, and you never know when you are close to the reader.

The disadvantages of RFID mainly to protect the privacy Hinge Concerns, technical deficiencies, the cost of the technology and no proven way to set up an RFID system for a company. The government and the companies are the two groups that have concerns about issues of privacy. Hidden tags and readers threaten to take away human mystery offers a world in which people see, feel and hear only that, what the government and big business people.

III. Future of RFID --

The future of RFID technology, however, is uncertain, the> Technology is here to stay. The companies have overcome many obstacles to implementing the technology a viable solution. Privacy issues and will continue, despite falling costs of RFID systems. In order for RFID to be successful, companies need to cooperate with the privacy advocate groups to develop a fair manner without having to implement customer alienation of their RFID.

Technology will continue to be developed for RFID and many new applications will be realized.Automation is a side effect of RFID deployment in the supply chain and in everyday life. Contactless payment methods are already available, as well as key card to open the automatic doors. RFID tags with readers in cars on the roads and highways is installed to break the Authority notifies you if the law. Supermarkets will be finally able to realize their shopping cart checkout system, where prices fall at an affordable price. Fresh food, metals and liquids are allRFID-compliant in the near future. If privacy issues are not closely monitored, people will have, and there is always someone watching and analyzing each person's decisions.