IF current Automatic Identification and Data Collection (AIDC) technology providers do not start taking RFID technology seriously then they are going to be left behind, warned Ray Chappelow, product manager for Dy-Mark , at a recent Australian Institute of Packaging seminar on RFID.
"RFID will play a significant role in future bar coding and product identification technologies and providers need to become better educated on the technology and its benefits over existing solutions," Mr Chappelow said.
RFID technology was first used to identify friend-or-foe aircrafts during WWII so Allied forces could determine the status of approaching planes. RFID has evolved into many other uses but it has not yet penetrated the supply chain and collaborative commerce arena to the levels of the bar code.
The technology infrastructure to support RFID tracking applications use is still in its infancy relative to bar code support. Now thanks to EPC Global and the development of an industry standard many expect to see a rapid uptake of this technology into supply chain applications.
So what is a bar code?
The bar code is the industry standard for data collection activities in Australia. It allows users to achieve highly accurate fast reads of encoded data. The bar code was developed as a data carrier that enables fast and accurate data collection. While the bar code has its limitations it has done a remarkable job of remaining current as technology has evolved at its fastest rate ever in history.
"We have identified that RFID, labelling and tagging can in fact work in conjunction with each other and that tracking and tracing products can become far more accurate than previously imagined," Mr Chappelow said.
The advantages of RFID and its technology infrastructure are developing to a point where its use can enhance supply chain and collaborative commerce purposes. A key point in Mr Chappelow's presentation was how to identify appropriate Smart Label applications.
"Knowledge of how an RFID system works is more than half the battle. The challenge now exists to incorporate this understanding of RFID into addressing business challenges. For AIDC opportunities, Smart Labels can enhance an existing technology solution, or help to create efficiencies where cost centres exist," he said.
What are Smart Labels?
Smart Labels are traditional labels that incorporate an RFID tag, known as an inlay, and are then printed on and encoded by a dual-purpose printer. In the case of Smart Labels for tracking items, thermal printers have long been seen as superior in terms of their ability to produce a quality printed image on a variety of materials at a low operating cost.
RFID capabilities are a logical extension of a thermal printer's capabilities. The Datamax I-Class RFDI printer was developed to include the ability to encode data onto RFID tags while simultaneously printing a graphical image - bar code, text, graphics - onto the label. This simple system allows users to incorporate the benefits of RFID into their current data capture applications while developing new systems to fully exploit the power of this new technology.
Benefits of Smart Labels
Smart Labels add capabilities to data tracking systems not available with bar codes alone. These benefits can increase a company's efficiencies by orders of magnitude, or their results could be merely incremental based on current technology sophistication and usage levels.
Smart Labels also enable cost reduction activities, a key topic for many in today's highly competitive marketplace. The main benefits of smart labels are instantaneous identification, no line-of-sight requirement, the ability to update or supplement data on the smart label, and expanded data capability.
Items can be automatically identified once within range of the reader/antenna. The RFID tags do not have to be individually scanned due to anti-collision and individual identification capabilities among readers and software solutions. The sophistication of the technology allows multiple objects to be identified virtually immediately, with the background software acknowledging each individual item through a process of elimination.
The sophisticated software system supporting RFID technology and the fact that data travels through the air and many objects removes the line-of-sight requirement that limits bar codes. Bar codes require that a scanner be directed directly at them and are often adversely affected by ambient lighting levels. With RFID communication, however, the data travels through the air, and it is not required that the reader or antenna be able to physically view the tag for communication to occur.
With read-write capabilities, data about the item can be updated throughout the product or the tag's lifecycle. This expanded capability enables enhanced tracking that exists right on the item. Updateable information is certainly available within a bar coding system, but the updates take place within the host database. With RFID the database remains with the item and in the host system, allowing for a backup in case problems occur with accessing the host information.
Even in situations where updating the database that resides on an item is not feasible or required, RFID tags enable a larger amount of data to be carried on the item relative to bar codes. Some RFID microchips are able to carry upwards of 2k of dynamic data, which is more than the average linear bar code.
Smart Label applications
With the potential benefits that RFID can add to an existing or future system, the applications for Smart Labels are endless. Virtually any users that require item tracking, whether for inventory or management purposes can enhance their system by using Smart Labels with RFID technology.
With technology that is in its early adopter stage, it is important for users to clearly identify expectations and processes to be used. With these definitions in hand, a system can be developed that achieves their goals with the most appropriate technology.
"It could potentially be very easy for a customer to get oversold on RFID with all of the interest surrounding the technology," Mr Chappelow said.
RFID technology allows companies to take another step forward toward real-time visibility of assets, people, items and products. Some companies will see great value in moving toward instant identification capabilities, especially for those whose competitive situations or high-value assets makes the cost justification irrelevant.
According to Venture Development Corporation (VDC), the RFID market is expected to grow 21% through 2005 with that growth being driven by consumer goods and retail companies.
Selecting RFID and Smart Labels as the most appropriate technology solution for a given AIDC application will be a challenge for users. RFID is injecting the possibility for innovation into the AIDC technologies that have remained static for over 30 years.
"Smart Labels are helping to bring the two worlds closer together and should be seen as a more affordable way to implement RFID solutions for the smaller players in this country." Mr Chappelow said.