Rfid Pallets

Test Models of pallets with "Radio Frequency Identification" tag are now placed out for trial. In future, supply chain management and product traceability (unloaded) will be but just a breeze.

They say the advantages of RFID Pallets are:
1. Achieve higher efficiencies and quality while reducing errors;
2. Use less labor;
3. Enable more efficient use of the JIT process;
4. Retrieve instantaneous information including the number and type of products on pallets;
5. Monitor real-time movement and location of warehouse inventories;
5. Log inbound and outbound pallets automatically and electronically into a database;
6. Receive proof of receipt and delivery at all points throughout the supply chain;
7. Expedite invoicing more quickly.

What do you think? Is it worth the while?


Charles Chew

As someone once said - You can't stop progress!

It's still relatively early days for RFID however; the technology is becoming more cost-accessible and is already being used in many commercial applications. Over time as the cost of RFID technology decreases we are sure to see it used in a much wider range of applications. Big brother is watching you…

At the end of the day it's a very good idea and it will eventually become as widespread as the barcode.

The other day I sent a parcel to Singapore and it still amazes me how you can input your waybill number on the internet and track your parcel as it traverses the globe, step by step and in real time. Who'd have thought it?

Has anyone got practical experience with RFID?

Regards,
Simon

Simon,

My Passport is already microchipped. What else is not impossible to happen in the future?

Charles Chew

There's a lot of the hysteria surrounding the subject of RFID and what it can and cannot do. So it was refreshing to read an article 'Tagging is in the Bag' in this month's Dairy Industries International magazine which helped to cut through much of the BS. Below are the benefits and drawbacks of RFID as described by the article:

Benefits:

- Automatic way to collect product, place, time or transaction data quickly and easily
- Minimum level of human interference required
- Uses radio waves and does not require a direct line of sight to product as with barcodes
- Can run through stacks greater than one level deep passed a reader checkpoint
- Processes at an extremely high speed <100 milliseconds

Drawbacks:

- Fairly short range perhaps up to 30 metres
- High technology cost. An RFID printer and associated software at the moment costs between 80,000 - 165,000 Euros.
- Currently tags cost approx 20 cents each.
- Even with expected reduction in the cost of technology and economies of scale in time, the lowest priced best estimate is still 4 cents per tag, which is still much more than the cost of a barcode
- Currently no regulation

The article concluded that for the foreseeable future RFID technology is very unlikely to be used widely at a consumer product level. However, RFID look set to be the next generation of warehouse management systems, and although there are bound to be problems implementing the technology, it seems certain these will be outweighed by the benefits. Efficiency is the key word in the industry, and RFID offers a way to improve that.

So we are unlikely to see RFID tags on our tins of beans for quite some time.

Regards,
Simon

Simon,

I agree with the general opinion that RFID is most likely to be used in a significant manner as a next generation tool.

But if you are doing business with big boys today and these are industrial leaders, whether you are a warehouse service provider, OEM Manufacturer, or just another Supplier, you simply have NO CHOICE but to oblige.

Question is how fast would the "application gap" be narrowed down before it becomes a packaging standard. I have a sneaky suspicion that it may not take long. By the way, I am already looking at RFID for my Medical Consumable Products as a potential stock control cum traceability tool to detect possible design piracy.

Regards
Charles Chew

But if you are doing business with big boys today and these are industrial leaders, whether you are a warehouse service provider, OEM Manufacturer, or just another Supplier, you simply have NO CHOICE but to oblige.

Yes they do have a lot of power, but would they accept the price increase on a tin of beans to accommodate the RFID chip? RFID in high value Medical Consumable Products is more acceptable as the cost of the chip is probably only a fraction of the cost of the item. Can you imagine though being able to trace all product in the supply chain at the press of a button (even in people's homes). It would make product recall a cinch.

Regards,
Simon

If I am a supplier to these big boys and a significant percentage of my business is tied up with these conglomerates and they are my core customers- my answer to your question is I will do it at the increased cost.

I feel it is justified for me to negotiate with the RFID suppliers for best price and at the same time, leverage for more business from the big boys for being a dedicated supplier and perhaps, take over the portion of business that the other suppliers are not willing to comply.

These are challenging times and what better way to gain market share and business excess without having to fight for it........

Charles CHew

Excellent point Charles.

Regards,
Simon