Wednesday, December 31, 2008
Facilitator's Question: What are the driving forces for a warehouse/distribution centre to consider upgrading from their existing bar code scanning to radio-frequency identification (RFID) technology (as shown in your Blog)? Explain.
Level of Throughput
RFID is suitable for companies that handle high level of throughput and large volume of goods. It provides real time information such as inventory tracking to allow the company to know where exactly the goods are in the supply-chain and this will result in better control of the inventory.
Increase Amount of Information Stored
RFID provide more information relating to the inventory or items as compared to barcodes. No human labour will be needed to manually scan the tag for RFID and information can obtain from the computer system once the tagged goods pass the gantry.
Durability
The RFID tag can withstand harsh environment. It has a long reading range and the radio frequencies are not obstructed by anything between the tag and the transponder. Although it may be costly to adopt RFID, it is more efficient than using barcodes. In addition, we had also found this article that says RFID will advance in the near future. There is also another article showing RFID can be used to do inventory count.
Security
RFID can also help in security where full-time RFID monitoring could be installed for a storage area to detect theft of high-value goods. Fixed-position readers could also provide documentation that perishables were kept in cold storage areas until being removed from shipment.
Cost Savings
Cost saving is also a driving force to implement RFID. Although it requires a certain amount of startup capital, it allows companies to gain cost savings in the long run. RFID would reduce labour intensity of a distribution centre, increase inventory accuracy leading to better customer server, enable tracking, streamline warehousing activities which ultimately lead to better cost savings.
Other Considerations
To design a successful system, you must not only understand what you want the system
to do (application), but you also must be very clear about what technologies can be used
to deliver the performance you seek. When defining your perfect solution, it is important
to ask yourself often, "Am I adding this technology to do it better, or am I simply adding
technology?" Reading hundreds of tags per second could easily overwhelm a network or
software application. Existing identification systems should be retained where they
are
sufficient, with RFID used to complement them or eliminate blind spots or bottlenecks in
processes.
Part of application evaluation necessarily involves defining what the technologies you are
considering can and cannot do. Just like any other technology, RFID has its limitations,
and it's important to know what they are.
For example, RFID cannot read tags over great distances, though it can certainly work in
concert with technologies that can. Also, because we are talking about radio waves,
interference can be a problem, so metal, liquid, and many tags in close proximity to one
another or varying orientations could affect performance. Though cost has come down
and will continue to decline, an RFID tag will always be more expensive than a paper bar
code label, and we doubt you will ever see five cents per tag in low to medium volumes.
Finally, RFID tags cannot replace bar codes. But the two can work together to provide
you with an effective, streamlined, highly productive warehouse and distribution
management system.
Level of Throughput
RFID is suitable for companies that handle high level of throughput and large volume of goods. It provides real time information such as inventory tracking to allow the company to know where exactly the goods are in the supply-chain and this will result in better control of the inventory.
Increase Amount of Information Stored
RFID provide more information relating to the inventory or items as compared to barcodes. No human labour will be needed to manually scan the tag for RFID and information can obtain from the computer system once the tagged goods pass the gantry.
Durability
The RFID tag can withstand harsh environment. It has a long reading range and the radio frequencies are not obstructed by anything between the tag and the transponder. Although it may be costly to adopt RFID, it is more efficient than using barcodes. In addition, we had also found this article that says RFID will advance in the near future. There is also another article showing RFID can be used to do inventory count.
Security
RFID can also help in security where full-time RFID monitoring could be installed for a storage area to detect theft of high-value goods. Fixed-position readers could also provide documentation that perishables were kept in cold storage areas until being removed from shipment.
Cost Savings
Cost saving is also a driving force to implement RFID. Although it requires a certain amount of startup capital, it allows companies to gain cost savings in the long run. RFID would reduce labour intensity of a distribution centre, increase inventory accuracy leading to better customer server, enable tracking, streamline warehousing activities which ultimately lead to better cost savings.
Other Considerations
To design a successful system, you must not only understand what you want the system
to do (application), but you also must be very clear about what technologies can be used
to deliver the performance you seek. When defining your perfect solution, it is important
to ask yourself often, "Am I adding this technology to do it better, or am I simply adding
technology?" Reading hundreds of tags per second could easily overwhelm a network or
software application. Existing identification systems should be retained where they
aresufficient, with RFID used to complement them or eliminate blind spots or bottlenecks in
processes.
Part of application evaluation necessarily involves defining what the technologies you are
considering can and cannot do. Just like any other technology, RFID has its limitations,
and it's important to know what they are.
For example, RFID cannot read tags over great distances, though it can certainly work in
concert with technologies that can. Also, because we are talking about radio waves,
interference can be a problem, so metal, liquid, and many tags in close proximity to one
another or varying orientations could affect performance. Though cost has come down
and will continue to decline, an RFID tag will always be more expensive than a paper bar
code label, and we doubt you will ever see five cents per tag in low to medium volumes.
Finally, RFID tags cannot replace bar codes. But the two can work together to provide
you with an effective, streamlined, highly productive warehouse and distribution
management system.
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