RFID actually stands for Radio Frequency
Identification, a network of transponders (tags), readers
and software that enables automatic identification and tracking
of items from a remote location. Each RFID tag contains an
integrated circuit (IC), which is encrypted with a unique
electronic product code (EPC) — essentially, an electronic
fingerprint. When a tag passes within range of a reader, the
EPC is transmitted to the reader through an antenna. The transaction
is recorded and retained in the central database, providing
real-time track-and-trace of the tagged item.
RFID is recognized as the natural successor
to bar code technology, and has been tagged as a supply chain
management tool by the retail, pharmaceutical and defense
industries. RFID demonstrates substantial improvements in
production and shipping efficiencies, and has been endorsed
by the FDA, the U.S. Department of Defense and some of the
nations largest retailers, including Wal-Mart, Target, Kohl’s
and Home Depot.
What is the current state of RFID
deployment in Rochester?
In general, local companies describe a
high degree of interest but only a modest level of integration.
Why is there such a discrepancy between
what local companies want to do with RFID and what they are
actually doing? I spoke with some of Rochester’s early
adopters to put a local face on track-and-trace.
Leading folding carton manufacturer Diamond
Packaging (Henrietta, NY) is currently evaluating available
technologies for in-line applications of RFID tags. “Without
question, RFID is one of the hottest topics in packaging”,
says Dennis Bacchetta, Marketing Manager at Diamond. “Companies
are moving from ‘Does it make sense?’ to ‘How
can we implement RFID?’ ”
Indeed, RFID seems to make sense to many
of the markets Diamond serves. Interest in item-level RFID
tagging has been driven primarily by the pharmaceutical, personal
care and cosmetic industries, which are particularly vulnerable
to theft and counterfeiting. RFID tags are virtually incorruptible
and almost impossible to counterfeit. Other obvious benefits
include impeccable accountability from the point of manufacture
to the point of sale, and precise, real-time inventory control.
If a company decides that RFID makes sense
for them, what are some of the implementation issues they
may deal with? According to Bacchetta, “The primary
challenge is ensuring compatibility with various vendors in
the supply chain.”
RFID technology is so diverse in form and
function that what might later be a strength is considered
a limitation at this point. Even if all of the parties in
a supply chain have adopted an RFID system that works well
for them, the individual systems may not work with each other
at all.
Rick Howe, VP of Sales and Marketing at
Hover-Davis, agrees. “RFID is evolving differently than
a lot of people expected. There are dozens of different technologies.
There are dozens of different markets, each with different
needs.”
Howe is certainly in a position to make
that assessment. Hover-Davis is a Rochester-based company
that is recognized as the principle designer and manufacturer
of component delivery systems for the circuit board assembly
industry. Among other things, Hover-Davis produces world class
feeding systems for silicon wafers, including those used in
RFID tags.
Although RFID applications currently represent
less than 1% of Hover-Davis’s market, Howe sees significant
growth potential once RFID integration is purified. “RFID
is evolving in a step function like a lot of disruptive technologies
do. There needs to be a lot more maturation of technologies
before item-level tagging can happen.”
EPCglobal plays a key role in the maturation
of RFID. EPCglobal is an international consortium of RFID
manufacturers and end-users that is working to accelerate
RFID’s growth curve. Their mission is to create global
standards for RFID implementation, such as operating frequency,
read ranges, and middleware capabilities.
EPC global members are working cooperatively
to standardize all aspects of RFID integration, including:
Electronic Product Code™ (EPC)
ID System (EPC tags, readers and interface protocols)
EPC Middleware
Discovery Services
EPC Information Services (EPCIS)
EPCglobal Network Reference Architecture
Some individual consumers and advocacy groups have expressed
concern that RFID enables remote identification and monitoring
that can compromise their privacy and personal security. RFID
manufacturers and distributors have encountered organized
media resistance to the idea of spreading RFID into the consumer
sector.
In order to advance business interests in balance with consumer
concerns, EPCglobal developed and published their Guidelines
on EPC for Consumer Products, designed “to allow EPC
to realize its potential for consumers, retailers and suppliers,
by addressing privacy concerns prompted by the current state
of the technology while establishing principles for dealing
with its evolution and implementation.”
Rochester’s own Wegmans Food Markets is well-known
for demonstrating strong principles of community involvement.
In addition to exploring internal applications for RFID, Wegmans
continues to support the larger community by taking an active
role in developing RFID standards.
Marianne Timmons is the director of Business-to-Business
at Wegmans. “Wegmans is a member of EPCglobal and is
exploring opportunities for a future implementation. Today
Wegmans is focused on building a solid foundation for the
future of EPC through their Data Synchronization efforts.”
Interoperability may be the primary challenge of wide-scale
RFID deployment, but it certainly isn’t the only one.
Bacchetta identified two others: “A secondary concern
is cost implications and the ability to ensure ROI. Finally,
considerable work needs to be done to assess and compare the
various tag technologies currently available.”
Howe cites cost and technology diversity as two issues that
have caused people to redefine their understanding of RFID,
and shift the benefit expectation from an item-level intervention
to a middle-market tool, at least for now. “Many people
thought that item-level tagging was going to become the utopia
of the RFID industry. It’s actually going much more
in the direction of middle-market segments—pets, airline
and ship cargo—seeping into middle-volume markets. RFID
is not going to go from infancy to soup cans overnight.”
All of the people I spoke with for this
article are optimistic about the future of RFID. “These
challenges are typical of any emerging technology,”
Bacchetta remarked. “None are insurmountable, and I
expect that all will be resolved within the next few years.”
Birds Eye Foods, the nation’s leader in frozen vegetables,
is a Rochester-based company that actively uses RFID in their
supply chain management. As local market experience continues
to grow, we can expect to find more companies following suit.
There is clearly more work to be done before Rochester experiences
an RFID revolution, but as the saying goes, “many hands
make light work”.
Sally Bacchetta is an
award-winning freelance writer and sales trainer. She has
published articles on a variety of topics, including sales
training and motivation, pharmaceutical sales, and emerging
technologies. Read her latest articles
on her freelance writer website.
Email: info@sallybacchetta.com
Company Profile:
Sally Bacchetta
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