Implementation Challenges of RFID

Implementation Challenges of RFID

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Implementation Challenges of RFID
There is no doubt that Radio Frequency Identification (RFID) is bound to become the foundation of most supply chains systems for the coming years. However there are many barriers to overcome before RFID becomes a mainstream technology. Such process will only be possible with the correct implementation of such innovative technology. (See Exhibit 1 for a suggested model of RFID implementation)

RFID is a complex and still evolving technology. Therefore in order to achieve a successful
usage and implementation expertise on the matter in absolutely required. In order to achieve a successful implement RFID the interested firm needs to face a multitude of challenges after all the implementation entails complex projects whose objectives are desirable but yet analytically for many firms it still untimely.

RFID is desirable if we focus on the benefits it brings to the table however cost and correct implementation still hinder many businesses to adopt RFID. RFID manufacturers have tried to curb the issue by implementing the EPC class 1, Gen 2 standards which have as a goal to diminish the cost of RFID. However companies who want to implement RFID have to face other challenges, considerably: the resistance to change; Establishing compatible infrastructures; creating RFID systems that are compatible with the multitude of industries and usages; The compatibility of RFID to the environment and the infrastructures required for its implementation; the compatibility of RFID with the different ERP available in the marketplace. Lets analyze each issue separately:

Challenges to be Faced prior to implementation:

RFID implementation faces many challenges. Some are systematic, others are as result of adverse perceptions. In order to have a successful implementation we must understand some of the keys challenges RFID adoption and implementation faces:
Market immaturity: The Application of RFID to lower cost items is a new concept and is yet unfeasible due to cost issues. Costs have to be low enough to allow placing RFID to single and inexpensive items units

Costs: Physical costs of tags is continuing to fall, however implementations costs continue to be high which will be a challenge for many firms specially small firms.

Resistance to change: Companies are unwilling to change to a yet unfamiliar technology, thus most of them still relying on manuals processes and barcodes scanning. Since barcode systems are efficient and represent a substantial investment, it can be difficult to justify a change to RFID. Any change in processes will always meet resistance

Multitude of sizes: RFID systems are customized for each deployment. Different RFID systems have different read rates and other capabilities.

Environment: The physical properties of the products to be tagged, the antenna design, and other environmental factors such RF noise and electric motors can make it difficult for readers to work reliably. Liquids absorb radio frequency signals, and metal reflects them. However this problems are bound to be solved as the technology evolves.

Lack of integration: Lack of integration and isolated systems of automation can pose significant problems for those considering RFID. Manufacturers' enterprise resource planning
systems may not be linked in real time to shop floor systems. Currently, integration with back-end systems generally requires the creation of custom interfaces, which is often a time-consuming and expensive undertaking. (Refer to Exhibit 2 to see software systems integration)
Lack of skilled personnel: RFID-knowledgeable IT personnel are hard to find. Many organizations, regardless of size, will discover they have no qualified IT personnel numerous areas and locations.

The lack of technical skills at the end-user’s side: During implementation the lack of knowledge from end users poses a big obstacle; As we have mentioned above the RFID technology still evolving and is not yet easy to implement or cost efficient. Even small installation requires complex integration. Those factors cause reluctance from end users who are neither too familiar with the new technology.

Data overload: An RFID reader will continuously scan each tag several times per second, for as long as the tag remains in its read range thus there exist a risk to read duplicate information, which will cause an overload in the network.

Multiplicity of vendors: most RFID systems are assembled from multiple sources. This can create integration obstacles if hardware and software not interfacing.

Resistance to information sharing: Information-sharing issues need to be solved in order to achieve maximum benefit.

Privacy issues: privacy advocates claim that RFID will violate consumer privacy. More particularly, there is a concern that using RFID technology without advising the consumer of its presence and how violates their privacy rights.

Useful tips for implementation

Some useful tips for a successful implementation of RFID include:

•Avoid fears associated with RFID implementation by creating strategies that combat consumer privacy fears, cost issues and software integration. This can be achieved by learned from early adopters of RFID namely Wal-Mart, Tesco and other organizations.

•Do not overestimate the benefits of RFID. Instead focus on how the technology will help to solve real-world business. Also a firm must be aware of lower-costing alternatives.

•Complete due diligence when researching RFID offerings:
RFID implementations can require a variety of readers and/or tags based on what types of items are being read (wood, paper, metal, liquid, etc.), how far the readers need to be from the tags, and the speed at which items are moving past the readers. Once tags are selected, a firm should choose hardware that has a solid track record in supporting the tag types.

•Start small and simple, and expand from there. Starting small will make the project less intimidating and also will reduce costs by saving on mistakes that could disrupt operations. When expertise has been acquired you can increase the volume.

Conclusion

RFID will become critical to most supply chains within the next 10-20 years with the market conservatively projected to be worth $1 billion by 2006. Despite spending $15 billion on supply chain software US companies had more than $1 trillion of inventory sat idle at the end of 2002. RFID tags need to reach the five-cent-per-chip price point, which is considered to be optimal price for mass implementation of RFID.
RFID is truly the optimal technology to increase visibility, efficiency, safety, security, reduced man hours speed and inventory control in the supply chain; thus the benefits of RFID are bound to increase. In order to achieve a successful implementation, due diligence about the technology need to be made (Refer to Exhibits 1, 2,3, for implementation processes).

References:

http://www.rfidjournal.com/article/articleview/1483/1/128/
http://www.dmreview.com/article_sub.cfm?articleId=1033579
http://www.researchandmarkets.com/reportinfo.asp?report_id=304419
http://www.poms.ucl.ac.be/etudes/notes/cems2301/SCM%20Metrics.pdf
http://danbygroup.com/white-papers-zip/Zebra%20Best%20Practices_RFID.pdf
http://www.allen-bradley.com/abjournal/sept2004/features/rfidbegins/index.html
http://www.cognos.com/pdfs/analystreports/ar_forrester_rfid_bi_practices.pdf

Disclaimer
The above essay was written by a college student and merely states opinions of a college student. However, if you feel strong about responding to the opinions stated, please write to articles@directorym.com and express your concerns.


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