RFID: An idea whose time has come
Published: 19 Feb 2004 15:29 GMT
Wal-Mart
In late 2003, Wal-Mart, the 600-pound gorilla of retail, delivered a mandate to its 100 largest suppliers: all cartons and pallets shipped to Wal-Mart stores must be equipped with wireless RFID sensors by 1 January, 2005. According to John Pulling, vice president and chief operating officer of Provia Software, a private warehouse management system vendor, companies will spend anywhere between $50,000 (£26,248) and $350,000 just to take care of the initial RFID requirements mandated by Wal-Mart.
Suppliers impacted by the Wal-Mart mandate will have to develop infrastructure and applications for tracking shipments that go beyond the current barcode technology. After these 100 suppliers take steps to comply with RFID requirements, it is very unlikely that other suppliers will be spared from additional mandates from the retailing giant. Of course, Wal-Mart's adoption of RFID technology will force other retailers to implement their own similar programs.
Coca-Cola
As the official soft drink of the 2002 Olympic Games in Salt Lake City, Coca-Cola provided free refreshment to athletes using Coke bottle-shaped key ring tags and Coca-Cola vending machines equipped with RFID readers. The same basic principle can be applied to every can of Coca-Cola.
Tracking a can from manufacture, through shipping and distribution, to the vending machine, Coke will achieve an unprecedented level of inventory management and control. Vendors will be able to point a reader at a vending machine and tell immediately what stock needs to be replenished without having to open the machine and take a manual count.
Privacy concerns
All of this ubiquitous tracking ability does raise privacy issues for many. By their nature, RFID tags can be read by anyone at any time by without your knowledge or, more importantly, your permission. Theoretically, the powers that be could scan the contents of your briefcase and note your liberal reading tendencies or proclivity to carry concealed weapons.
While the privacy concerns are very real, they are limited by the nature of the RFID technology. Most personally carried RFID tags (smart cards, key chains, etc.) require close proximity to the appropriate reader before they will transmit the data they carry.
However, as the technology becomes more prevalent, the potential for the unscrupulous to exploit it will have to be monitored and addressed. Not to be undone by such fears, the industry is very sensitive to the potential for misuse and is taking steps to increase data security with standards and operating specifications.
Application development
For application developers, the opportunity inherent in RFID technology lies in the middleware that processes the data coming from the tags and reader devices. The information must be collated, analysed, and reported to the decision makers in a form that is understandable and actionable. The capability to collect data and apply it to practical business uses will require the development of sophisticated applications.
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