What is exactly RFID?

RFID is a new data carrier that allows automatic real time data capture by using tags equipped with chips and readers. RFID permits the creation of checkpoints across the supply chain.

RFID will also allows to get near real time tracking of products flows within and outside the company, to manage the supply and to take a decision on events occurring in the supply chain.

More than an improvement of the Barcodes, RFID is a real technology break-through that will bring a permanent inventory and location tracking of products in the supply chain during their lifetime.

The utilisation of the RFID tags offers several benefits: The possibility of having several information that can be modified immediately within the tag but also the fast inventory of products which requires time and people to do it.

Today retailers, fast moving consumer good companies, pharmaceutical enterprises, military related industries are investing in this technology. They quickly realized the benefits (for them and their commercial partners) they can reach in their supply chain. They are also convinced that the near real time management of data will allow a better management of events (crisis, product calls back, stock shortage, etc) in their supply chain.

Companies also feel the increasing pressures from other entities such as Government agencies, regulatory bodies and consumer organizations to improve the degree of traceability of their products. RFID was recognized by several companies and organizations on worldwide basis to be the technology capable of delivering solutions that meets these requirements.

RFID continues to evolve and will be fully mature in a near future. Nevertheless, RFID is accessible and can be implemented today in almost all industry sectors with proven benefits.

A RFID program manager from a UK retailer compared the introduction of this technology in the supply chain with Formula One. There are a lot of technical details to manage: Radiofrequency physics, improvement in processes due to the technology and IT systems. You are facing an emerging technology that will, without a doubt, modify your business processes and your IT system.

Announcements of companies that are testing this technology and from solution providers are booming. We are facing a competitive race in those announcements regarding prices and performances of the tags.

What to do with all this information, what is truly applicable to your company?

The nature of your company business will determine the RFID solution that meets your needs :

• The nature of your products : metal, liquid,
• The packaging of your products
• The degree of complexity of your IT system
• The market of your company: National, CEE, international export

You need to master several parameters in a RFID project :

• Allowed Frequencies and authorized power levels.
• Tags and readers functionalities.
• Tags and reader utilization in an industrial environment.
• RFID impacts on the business processes.