I. Rfid Advantages
Radio Frequency Identification provides a principal assistance that is capable of revolutionizing the way associates track products. There are many benefactors of this technology: the military, retailers, suppliers, consulting firms, producers of the technology, and consumers. Rfid provides associates with a better alternative to bar-coding because no line-of-sight is needed to read a pallet, a carton, or a stock with a Rfid tag. Rfid tags also include information on the stock that is indubitably readable and accessible for the reader. Rfid will also begin to automate company's contribute chain, reducing labor costs, human error and time spent checking in products.
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In 2005, manufacturers and suppliers requesting new bids from the military must be Rfid compliant on four separate levels: packaged operational rations, clothing, tools, and weapon theory mend parts and components. The military requires that all cartons and pallets are shipped with a military Shipping Label which displays shipping data. The division of Defense has created the Rfid military compliance solution as a way to help suppliers and manufacturers meet the military's new standards for Rfid. The schedule is run by Avery Dennison sell information Services, and they were commissioned by the Rfid military compliance Solution. Avery Dennison sell information Services sells the Rfid tags to associates which must be affixed close to the military Shipping Labels to comply with division of Defense regulations.
The U.S. military is recovery an substantial estimate of money by using active and passive Rfid systems. By using Rfid for transportation and transportation systems in Iraq and Afghanistan, the military is able to diagnose and fix problems much faster than before. The implementation of Rfid in just this area will save the military close to half a million dollars this year. The U.S. Government has contracted Ibm to do study on the current Rfid being used currently in the military and the potential time to come applications for Rfid in the military. The military has been prosperous in creating better visibility throughout their contribute chain addition their productivity and stability.
Retailers and other associates that have a demanding contribute chain can gain an benefit on the field by using Rfid in the contribute chain. By demanding that all levels of their contribute chain be Rfid capable is a substantial investment. The productivity growth that follows the initial speculation and implementation for associates will pay for their investment. Wal-Mart was the first retailer to use Rfid in their distribution centers and warehouses, prompting many associates to supervene in their footsteps once Wal-Mart's success was realized.
Rfid is very prosperous with sell associates because it improves productivity, saves on human labor costs, and gives associates real-time visibility with all their products. Rfid tags use an Electronic stock Code (Epc) which is an upgrade and a transfer for the Universal stock Code (Upc) system. "Epc has a 96-bit code that has digits to identify the manufacturer, stock category and the private item. Manufacturers regain registration numbers & assign them to products. Each estimate is unique to a given item."
The cost of a tag is anywhere in the middle of twenty-five to fifty cents. In the next five to ten years it could be reduced to five cents per tag. At some point in the near time to come tags could fall to one cent tempting associates to use Rfid tags on every stock in a store. Wal-Mart says that since their market now have Rfid, it makes it easier to keep store shelves stocked allowing employees to interact with customers.
Target was able to save on their speculation for implementing Rfid, following in Wal-Mart's footsteps as Wal-Mart had already paved the way and suffered the pitfalls of implementing a new technology. In addition to the lower implementation costs, many of Target's suppliers had already begun making ready for the switch over to Rfid assuming Target would supervene Wal-Mart. Target as a large retailer knows how foremost it is to be able to contribute real-time data on pallets, cartons and shipments up and down-stream through their contribute chain.
A break-through in Rfid technology was made by Intermec, Inc. In May of 2006, with new rugged and reusable Rfid tags. These tags can be written thousands of times; it can deal with risky chemical exposure, and withstands temperatures from -50 degrees Fahrenheit to 250 degrees Fahrenheit. In October of 2006, Intermec released a new version of the rugged, reusable Rfid tag, together with wide-band antenna that can be used on any outside in any part of the world.
Rfid makes the business world seem like a smaller place, even associates like Wal-Mart who are very big and have a large integrated contribute chain. Rfid enables associates to be more effective with their time and space. associates that merge some newer contribute chain technologies with Rfid could see great results. Combining auto-picking with Rfid would reduce man-power needed, time needed to move pallets and cartons nearby a warehouse, and time needed to send pallets to their proper destination. The goal of a company's contribute chain should be to reduce time needed to be productive, by automating as much of the contribute chain as possible. It reduces human error, and machines are capable of running twenty-four hours a day and cost less than human labor. The
application of Rfid for a large business like Wal-Mart or Target, as well as smaller sell market can ensure a better shopping touch with more in-stock items and a more knowledgeable store.
The Rfid store is booming and many technological associates have gotten in the game producing Rfid parts and systems. In many cases being a producer of Rfid components and systems also allows you to become a consulting firm for the technology. Hewlett Packard (Hp) is one of the largest associates developing Rfid systems. Hp's goal is to make it as easy and affordable as potential for a business adopting Rfid technology. Hp has touch in the Rfid field, as they were one of the early adopters of the technology and have been very prosperous integrating it into their business. Hp began with two larger clients, Hasbro (produces children's toys) and Conros (a large Wal-Mart supplier). Hewlett Packard has created two Rfid Centers for Excellence, one in California and one in Taiwan, to demonstrate new potential uses for the technology, as well as how it can be implemented into a business. More centers are slated to be opened throughout the world, together with Great Britain, Singapore, and Tokyo Rfid Centers for Excellence.
The Rfid store sits at approximately one billion dollars in 2006 and has varying estimates as to the growth potential of the market. Estimates of Rfid store size in 2008 vary anywhere from .3 billion by Idc, to .2 Billion by the Yankee Group. As shown in frame 1 in the appendix, most of the business is made up of sales of hardware, tags, readers and other physical products of Rfid. approximately 20-25% of the store is made up of consulting work for the technology and the last 5% is made up of software for Rfid. The two biggest areas firms are concentrating on are the yield and consulting sides of Rfid.
The biggest challenges for producers and consultants alike are the reliability and durableness of Rfid systems and products. It is hard to simulate the wear and tear a stock will touch over time. Hp has made testing Rfid products one of their benchmarks, providing intense field-testing of Rfid to ensure its durableness and quality. A competitor of Hp is Ibm, who agreeing to Amr study is the store leader in Rfid. Ibm has over eleven years touch working with Rfid, and like Hp, they were an early adopter of Rfid technology. The benefit that Ibm has over Hp is there world-renowned consulting services, coupled with their massive networking capabilities. Ibm's services promise more results than Hp's Rfid systems mainly because of Ibm's consulting expertise. Ibm works with associates to find the best avenues to implement Rfid, attempting to maximize Return on speculation (Roi) by reducing one someone per shift from manually tracking products allowing them to focus on value-added manufacturing activities. Ibm also focuses on other ways to heighten Roi including, offering a one-time savings of 0,000 in operating costs, continuous fabrication line operations, better buyer assistance providing real-time information on products, and less errors and delays cause by human error.
Rfid began to take off once associates like Wal-Mart and Target, and the U.S. military demanded that their top 100 suppliers must adopt Rfid technology. Many suppliers were not ready for a move like this, a move that would fully retrofit their current operations at a high cost to the supplier. There were some suppliers that welcomed the convert in technology and already began implementing Rfid in anticipation of Wal-Mart and the U.S. Military's ask that their suppliers adopt the new technology. Wal-Mart demanded that their top one hundred suppliers would need to be Rfid ready by January 2005, and to Wal-Mart's surprise, twenty three extra suppliers have volunteered to make the convert to Rfid. There is a new generation of tags that hit the store in 2005, called the Gen 2 Standard, which make Rfid more piquant to suppliers who have no Rfid systems in place. The Gen 2 Rfid improves on the first generation of Rfid by addition read times, addition read ranges, and read tags more accurately.
Suppliers and manufacturers will notice the benefits of implementing Rfid into their organizations streamlining parts of their operations. Return on speculation is the most foremost factor for a business implementing Rfid. Suppliers will see their Roi growth as human labor hours are decreased, human errors are decreased and interoperability is increased. Rfid increases the visibility of the suppliers so they can do their job in real time, assuring that the literal, holder is sent to the literal, location. It also saves money in the long-term for manufacturers and suppliers because Rfid will save time spent inventorying and tracking products. An benefit for suppliers and manufacturers using Rfid is customization of products in a shorter duration of time. Smaller suppliers and manufacturers will have a harder time implementing Rfid, as costs range from 0,000 to million to implement the technology, but as costs go down more associates will adopt Rfid.
Rfid does have an additional one potential benefit for suppliers that could give them invaluable information. For Wal-Mart suppliers, readers are set up at the back door so suppliers know when their shipments have arrived addition visibility for both entities. A second reader is settled at the entrance to the sales floor so the provider can see what is on-hand on the sales floor and in the stock room. This will allow the provider to see which products sell better than others so that they can be replaced, and it also allows the provider to found more literal, sales forecasts. A secondary benefit of Rfid is that the promotions that merchandisers spend a lot of money to set up are often left in the stock room for too long or are improperly placed. Now merchandisers and vendors can make sure their promotions are being handled correctly. Suppliers and manufacturers have the potential to save money on yield costs, while development money on customized products.
Consumers should be the ultimate winner with Rfid being implemented throughout a company's contribute chain. In the long-run, market will save money throughout their contribute chain, thus bringing down costs to consumers. Consumers should also expect to find more helpful and more informative customers assistance with associates that have Rfid. These associates now have real-time data to share with the customer. A buyer complaint about sell market has always been that there are too many out-of-stock items; however, with Rfid in place many of these market should see a principal decrease in out-of-stock items. Having Rfid tags on definite products can also make people's lives much easier, such as a microwave that is a reader and recognizes the tag of the food you put in and will automatically cook it agreeing to the directions on the tag. It also helps environmentally because associates will use resources more efficiently, benefiting everyone. Once Rfid tags are able to be used on food products it will make a recall on a definite item much easier and it could potentially save lives.
Consumers use Rfid everyday and many do not perceive the benefits they are receiving from the technology. Contactless cost is a developing technology, the card being used contains a tag and the cost area contains a reader. Mobil and Exxon use a "Speedpass" as their contactless form of cost allowing customers to wave the card in front of a reader to pay for gas or anyone in the convenient store. Visa and Mastercard are the two biggest developers of this technology, claiming that it will benefit every person from consumers to businesses. It allows population to have preset money on a card (either debit or credit) which decreases waiting time at check-out stands and increases loyalty to associates that offer this feature. an additional one use of smart cards is keyless entries, which is becoming a beloved trend in America, using just a card and swipe it over the sensor to allow entry. Rfid is a beneficial technology for consumers recovery time and offering conveniences traditional bar codes, prestige cards and keys cannot offer.
Rfid contains many advantages over traditional ways of coding pallets, boxes and products. It allows for non-line of sight reading of the tag which market all the stock information. Rfid reduces human labor costs and human errors through the contribute chain recovery associates money, as well as reducing theft in the store and warehouses. Rfid can save lives as well if there is a recall and the recalled food item or stock is tagged, then it would be easier to regain all the units.
Ii. Disadvantages
Radio Frequency Identification has been nearby for over fifty years, but it has been the rapid amelioration and deployment of the technology over the last five years that has raised people's awareness and comprehension of the technology. While there are many potential benefits for Rfid, there are many pitfalls as well. Every level that could benefit from Rfid can also reap negative rewards from the technology.
The U.S. military was one of the early adopters of the technology using it for over ten years in a microscopic area of their operations. In 2003 they upgraded their usage of the technology by demanding that all suppliers must affix a Rfid tag to every pallet, carton and big-ticket item being shipped to the military. The biggest qoute the military faces is an issue of security. With perfect stock information on a tag it is easy for an enemy of the United States to pull information off a tag. This could supervene in loss of life of U.S. Soldiers or even U.S. Civilians if the wrong stock ended up in the wrong hands. The tags could forewarn enemies of potential weaknesses and strengths of our military and give them a view on how to attack us at our weakest points.
Large associates like Wal-Mart and Target who use Rfid face many potential problems with the technology. Rfid has no proven infrastructure development it difficult for suppliers to keep up with these company's demands to become Rfid-ready. If the suppliers cannot effectively implement Rfid into their business, then retailers cannot fully view their contribute chain. If retailers cannot get all their information in real time over their whole contribute chain, then the issues they are trying to solve will remain problems. Out-of-stock items, first-in-first-out products and last-in-last out products will still cause problems for these large retailers.
Epcglobal is a start to an international standards body for Rfid. It has yet to be approved by the International club for Standardization (Iso) and there is still not a global frequency standard. While 900 Mhz appears to be the best frequency due to its long read-range capability, 13.56 Mhz is still used delaying the standardization of global frequency for Rfid. High costs of Rfid implementation is the reason many mid-size and smaller retailers have not adopted the technology. The short-term outlook for associates who use Rfid isn't impressive, although long-term benefits will be realized.
Privacy issues are the estimate one pitfall for Rfid and retailers. As long as the tags are only affixed to pallets and cartons then the retailers would not have any definite information on the consumer. However, when Rfid tag prices fall, associates like Wal-Mart and Target plan on using Rfid tags on private products which they can trace consumer's buying habits and other information consumer's wish to keep private. It was privacy issues that force Benetton to cease their pilot Rfid system. They wanted to embed a tag in articles of clothing to stop theft, decide buyer buying habits and keep their account at an standard level. Privacy advocate groups such as the Consumers Against Supermarket Privacy Invasion (Caspian) fight associates using Rfid to track buyer behavior. A study showed that up to 78% of America was against Rfid based solely on privacy issues. It will be difficult for associates in the time to come to tag private items without a group outcry without some form of security for the public's privacy rights.
Consumers have the largest disadvantage of any other entities complex with Rfid technology. There are five privacy issues that consumers must try to protect themselves from: private placement of tags, unique identifiers for objects worldwide, massive data aggregation, private readers, and private tracking and profiling. private placement of tags by associates is an easy way to get information from consumers. The buyer will feel safe buying a stock with no knowledge of an Rfid tag embedded in their clothing. These tags theoretically could track a someone nearby the world if there were readers in definite locations throughout the world. Personal information may also be embedded in these tags giving information as detailed as your medical history. Prada and Swatch use embedded tags in their clothing, and Benetton did as well, but a boycott of Benetton was prosperous and they removed their tags. There is no law against associates embedding tags, and only California and Utah have made official requests to convert the situation.
Companies who use Rfid can compile massive amounts of data on consumers, together with stock likes or dislikes, buying power or even prescription history. Rfid makes it easy to amass this data and to prescription correlations. If a corporation owns many market they can merge data in the middle of associates and originate new data on buying habits.
Hidden readers violate people's privacy much the same way private tags do. Gillette and Accenture are introducing "silent commerce" which embeds tags on people's products and readers in strategic locations without the consumer's knowledge. These associates have experimented with separate reader locations ranging from private floor covering locations to shelve locations and even private in floor tiles. Readers could even be installed in doorways on street lights, anywhere that population have to pass through, and promptly all information embedded in the tag is broadcast to the reader. If this were to happen privacy would be impossible because you would never know if the products you have include tags, and you never know when you are within presence to a reader.
The disadvantages of Rfid hinge mainly on privacy concerns, technological imperfections, cost of the technology and no proven way to set up an Rfid theory for a company. The government and corporations are the two groups that offer the most concern for privacy issues. private tags and readers threaten to take away human mystery, offering a world where population see, feel and hear only what the government and large corporation want population to.
Iii. time to come of Rfid
The time to come of Rfid is uncertain, however, the technology is here to stay. associates have many obstacles to overcome to make the technology a feasible option to be implemented. Privacy issues and will persist, although cost for Rfid systems will decrease. In order for Rfid to be successful, associates must work with privacy advocate groups to found a fair way to implement Rfid without alienating their customers.
Technology will continue to found for Rfid and many new applications will be realized. Automation will be a side-effect of Rfid development, in the contribute chain and in everyday activities. Contactless cost methods are already available, as well as automatic keycards to open doors. Rfid tags installed in cars with readers on the roads and freeways will alert the authority if you are breaking the law. Supermarkets will eventually be able to perceive their shopping cart checkout theory once prices fall to a more affordable price. Fresh foods, metals and liquids will all be Rfid compatible in the near future. If privacy issues are not watched closely, population will become tagged and there will always be someone watching and analyzing every person's decisions.
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