Pros and Cons of Rfid Technology

California Labor Laws Lunch Breaks - Pros and Cons of Rfid Technology

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I. Rfid Advantages

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California Labor Laws Lunch Breaks

Radio Frequency Identification provides a valuable assistance that is capable of revolutionizing the way fellowships track products. There are many benefactors of this technology: the military, retailers, suppliers, consulting firms, producers of the technology, and consumers. Rfid provides fellowships with a better alternative to bar-coding because no line-of-sight is needed to read a pallet, a carton, or a goods with a Rfid tag. Rfid tags also contain data on the goods that is honestly readable and accessible for the reader. Rfid will also begin to automate company's supply chain, reducing labor costs, human error and time spent checking in products.

In 2005, manufacturers and suppliers requesting new bids from the soldiery must be Rfid compliant on four different levels: packaged operational rations, clothing, tools, and weapon ideas fix parts and components. The soldiery requires that all cartons and pallets are shipped with a soldiery Shipping Label which displays shipping data. The group of Defense has created the Rfid soldiery compliance clarification as a way to help suppliers and manufacturers meet the military's new standards for Rfid. The schedule is run by Avery Dennison retail data Services, and they were commissioned by the Rfid soldiery compliance Solution. Avery Dennison retail data Services sells the Rfid tags to fellowships which must be affixed close to the soldiery Shipping Labels to comply with group of Defense regulations.

The U.S. soldiery is recovery an astronomical number of money by using active and passive Rfid systems. By using Rfid for transportation and transportation systems in Iraq and Afghanistan, the soldiery is able to diagnose and fix problems much faster than before. The implementation of Rfid in just this area will save the soldiery close to half a million dollars this year. The U.S. Government has contracted Ibm to do explore on the current Rfid being used currently in the soldiery and the possible future applications for Rfid in the military. The soldiery has been prosperous in creating better visibility throughout their supply chain increasing their productivity and stability.

Retailers and other fellowships that have a demanding supply chain can gain an advantage on the field by using Rfid in the supply chain. By demanding that all levels of their supply chain be Rfid capable is a astronomical investment. The productivity growth that follows the first speculation and implementation for fellowships will pay for their investment. Wal-Mart was the first retailer to use Rfid in their distribution centers and warehouses, prompting many fellowships to corollary in their footsteps once Wal-Mart's success was realized.

Rfid is very prosperous with retail fellowships because it improves productivity, saves on human labor costs, and gives fellowships real-time visibility with all their products. Rfid tags use an Electronic goods Code (Epc) which is an upgrade and a exchange for the Universal goods Code (Upc) system. "Epc has a 96-bit code that has digits to identify the manufacturer, goods category and the personel item. Manufacturers derive registration numbers & assign them to products. Each number is unique to a given item."

The cost of a tag is anywhere between twenty-five to fifty cents. In the next five to ten years it could be reduced to five cents per tag. At some point in the near future tags could fall to one cent tempting fellowships to use Rfid tags on every goods in a store. Wal-Mart says that since their market now have Rfid, it makes it easier to keep store shelves stocked allowing employees to interact with customers.

Target was able to save on their speculation for implementing Rfid, following in Wal-Mart's footsteps as Wal-Mart had already paved the way and suffered the pitfalls of implementing a new technology. In increasing to the lower implementation costs, many of Target's suppliers had already begun making ready for the switch over to Rfid assuming Target would corollary Wal-Mart. Target as a large retailer knows how foremost it is to be able to supply real-time data on pallets, cartons and shipments up and down-stream through their supply chain.

A break-through in Rfid technology was made by Intermec, Inc. In May of 2006, with new rugged and reusable Rfid tags. These tags can be written thousands of times; it can cope hazardous chemical exposure, and withstands temperatures from -50 degrees Fahrenheit to 250 degrees Fahrenheit. In October of 2006, Intermec released a new version of the rugged, reusable Rfid tag, including wide-band antenna that can be used on any outside in any part of the world.

Rfid makes the company world seem like a smaller place, even fellowships like Wal-Mart who are very big and have a large integrated supply chain. Rfid enables fellowships to be more productive with their time and space. fellowships that consolidate some newer supply chain technologies with Rfid could see great results. Combining auto-picking with Rfid would reduce man-power needed, time needed to move pallets and cartons nearby a warehouse, and time needed to send pallets to their allowable destination. The goal of a company's supply chain should be to reduce time needed to be productive, by automating as much of the supply chain as possible. It reduces human error, and machines are capable of running twenty-four hours a day and cost less than human labor. The
application of Rfid for a large company like Wal-Mart or Target, as well as smaller retail market can ensure a better shopping sense with more in-stock items and a more knowledgeable store.

The Rfid store is booming and many technological fellowships have gotten in the game producing Rfid parts and systems. In many cases being a producer of Rfid components and systems also allows you to become a consulting firm for the technology. Hewlett Packard (Hp) is one of the largest fellowships developing Rfid systems. Hp's goal is to make it as easy and affordable as possible for a company adopting Rfid technology. Hp has sense in the Rfid field, as they were one of the early adopters of the technology and have been very prosperous integrating it into their business. Hp began with two larger clients, Hasbro (produces children's toys) and Conros (a large Wal-Mart supplier). Hewlett Packard has created two Rfid Centers for Excellence, one in California and one in Taiwan, to demonstrate new possible uses for the technology, as well as how it can be implemented into a business. More centers are slated to be opened throughout the world, including Great Britain, Singapore, and Tokyo Rfid Centers for Excellence.

The Rfid store sits at almost one billion dollars in 2006 and has varying estimates as to the growth possible of the market. Estimates of Rfid store size in 2008 vary anywhere from .3 billion by Idc, to .2 Billion by the Yankee Group. As shown in figure 1 in the appendix, most of the manufactures is made up of sales of hardware, tags, readers and other physical products of Rfid. almost 20-25% of the store is made up of consulting work for the technology and the last 5% is made up of software for Rfid. The two biggest areas firms are concentrating on are the yield and consulting sides of Rfid.

The biggest challenges for producers and consultants alike are the reliability and endurance of Rfid systems and products. It is hard to simulate the wear and tear a goods will sense over time. Hp has made testing Rfid products one of their benchmarks, providing intense field-testing of Rfid to ensure its endurance and quality. A competitor of Hp is Ibm, who according to Amr explore is the store leader in Rfid. Ibm has over eleven years sense working with Rfid, and like Hp, they were an early adopter of Rfid technology. The advantage that Ibm has over Hp is there world-renowned consulting services, coupled with their gigantic networking capabilities. Ibm's services promise more results than Hp's Rfid systems mainly because of Ibm's consulting expertise. Ibm works with fellowships to locate the best avenues to implement Rfid, attempting to maximize Return on speculation (Roi) by reducing one someone per shift from manually tracking products allowing them to focus on value-added manufacturing activities. Ibm also focuses on other ways to heighten Roi including, gift a one-time savings of 0,000 in operating costs, continuous fabrication line operations, better buyer assistance providing real-time data on products, and less errors and delays cause by human error.

Rfid began to take off once fellowships like Wal-Mart and Target, and the U.S. soldiery demanded that their top 100 suppliers must adopt Rfid technology. Many suppliers were not ready for a move like this, a move that would wholly retrofit their current operations at a high cost to the supplier. There were some suppliers that welcomed the convert in technology and already began implementing Rfid in anticipation of Wal-Mart and the U.S. Military's inquire that their suppliers adopt the new technology. Wal-Mart demanded that their top one hundred suppliers would need to be Rfid ready by January 2005, and to Wal-Mart's surprise, twenty three extra suppliers have volunteered to make the convert to Rfid. There is a new generation of tags that hit the store in 2005, called the Gen 2 Standard, which make Rfid more engaging to suppliers who have no Rfid systems in place. The Gen 2 Rfid improves on the first generation of Rfid by increasing read times, increasing read ranges, and read tags more accurately.

Suppliers and manufacturers will observation the benefits of implementing Rfid into their organizations streamlining parts of their operations. Return on speculation is the most foremost factor for a company implementing Rfid. Suppliers will see their Roi growth as human labor hours are decreased, human errors are decreased and interoperability is increased. Rfid increases the visibility of the suppliers so they can do their job in real time, assuring that the strict package is sent to the strict location. It also saves money in the long-term for manufacturers and suppliers because Rfid will save time spent inventorying and tracking products. An advantage for suppliers and manufacturers using Rfid is customization of products in a shorter period of time. Smaller suppliers and manufacturers will have a harder time implementing Rfid, as costs range from 0,000 to million to implement the technology, but as costs go down more fellowships will adopt Rfid.

Rfid does have someone else possible advantage for suppliers that could give them invaluable information. For Wal-Mart suppliers, readers are set up at the back door so suppliers know when their shipments have arrived increasing visibility for both entities. A second reader is located at the entry to the sales floor so the supplier can see what is on-hand on the sales floor and in the stock room. This will allow the supplier to see which products sell better than others so that they can be replaced, and it also allows the supplier to institute more strict sales forecasts. A secondary advantage of Rfid is that the promotions that merchandisers spend a lot of money to set up are often left in the stock room for too long or are improperly placed. Now merchandisers and vendors can make sure their promotions are being handled correctly. Suppliers and manufacturers have the possible to save money on yield costs, while production money on customized products.

Consumers should be the extreme winner with Rfid being implemented throughout a company's supply chain. In the long-run, market will save money throughout their supply chain, thus bringing down costs to consumers. Consumers should also expect to find more helpful and more informative customers assistance with fellowships that have Rfid. These fellowships now have real-time data to share with the customer. A buyer complaint about retail market has all the time been that there are too many out-of-stock items; however, with Rfid in place many of these market should see a valuable decrease in out-of-stock items. Having Rfid tags on distinct products can also make people's lives much easier, such as a microwave that is a reader and recognizes the tag of the food you put in and will automatically cook it according to the directions on the tag. It also helps environmentally because fellowships will use resources more efficiently, benefiting everyone. Once Rfid tags are able to be used on food products it will make a recall on a distinct item much easier and it could potentially save lives.

Consumers use Rfid daily and many do not realize the benefits they are receiving from the technology. Contactless cost is a developing technology, the card being used contains a tag and the cost area contains a reader. Mobil and Exxon use a "Speedpass" as their contactless form of cost allowing customers to wave the card in front of a reader to pay for gas or whatever in the convenient store. Visa and Mastercard are the two biggest developers of this technology, claiming that it will advantage everybody from consumers to businesses. It allows citizen to have preset money on a card (either debit or credit) which decreases waiting time at check-out stands and increases loyalty to fellowships that offer this feature. someone else use of smart cards is keyless entries, which is becoming a favorite trend in America, using just a card and swipe it over the sensor to allow entry. Rfid is a useful technology for consumers recovery time and gift conveniences customary bar codes, prestige cards and keys cannot offer.

Rfid contains many advantages over customary ways of coding pallets, boxes and products. It allows for non-line of sight reading of the tag which market all the goods information. Rfid reduces human labor costs and human errors through the supply chain recovery fellowships money, as well as reducing theft in the store and warehouses. Rfid can save lives as well if there is a recall and the recalled food item or goods is tagged, then it would be easier to derive all the units.

Ii. Disadvantages

Radio Frequency Identification has been nearby for over fifty years, but it has been the rapid development and deployment of the technology over the last five years that has raised people's awareness and insight of the technology. While there are many possible benefits for Rfid, there are many pitfalls as well. Every level that could advantage from Rfid can also reap negative rewards from the technology.

The U.S. soldiery was one of the early adopters of the technology using it for over ten years in a microscopic area of their operations. In 2003 they upgraded their usage of the technology by demanding that all suppliers must affix a Rfid tag to every pallet, carton and big-ticket item being shipped to the military. The biggest question the soldiery faces is an issue of security. With faultless goods data on a tag it is easy for an enemy of the United States to pull data off a tag. This could corollary in loss of life of U.S. Soldiers or even U.S. Civilians if the wrong goods ended up in the wrong hands. The tags could warn enemies of possible weaknesses and strengths of our soldiery and give them a view on how to assault us at our weakest points.

Large fellowships like Wal-Mart and Target who use Rfid face many possible problems with the technology. Rfid has no proven infrastructure production it difficult for suppliers to keep up with these company's demands to become Rfid-ready. If the suppliers cannot effectively implement Rfid into their business, then retailers cannot fully view their supply chain. If retailers cannot get all their data in real time across their whole supply chain, then the issues they are trying to solve will remain problems. Out-of-stock items, first-in-first-out products and last-in-last out products will still cause problems for these large retailers.

Epcglobal is a start to an international standards body for Rfid. It has yet to be beloved by the International society for Standardization (Iso) and there is still not a global frequency standard. While 900 Mhz appears to be the best frequency due to its long read-range capability, 13.56 Mhz is still used delaying the standardization of global frequency for Rfid. High costs of Rfid implementation is the presuppose many mid-size and smaller retailers have not adopted the technology. The short-term outlook for fellowships who use Rfid isn't impressive, although long-term benefits will be realized.

Privacy issues are the number one pitfall for Rfid and retailers. As long as the tags are only affixed to pallets and cartons then the retailers would not have any exact data on the consumer. However, when Rfid tag prices fall, fellowships like Wal-Mart and Target plan on using Rfid tags on personel products which they can trace consumer's buying habits and other data consumer's wish to keep private. It was privacy issues that force Benetton to cease their pilot Rfid system. They wanted to embed a tag in articles of clothing to stop theft, determine buyer buying habits and keep their list at an thorough level. Privacy advocate groups such as the Consumers Against Supermarket Privacy Invasion (Caspian) fight fellowships using Rfid to track buyer behavior. A study showed that up to 78% of America was against Rfid based solely on privacy issues. It will be difficult for fellowships in the future to tag personel items without a group outcry without some form of safety for the public's privacy rights.

Consumers have the largest disadvantage of any other entities complex with Rfid technology. There are five privacy issues that consumers must try to protect themselves from: incommunicable placement of tags, unique identifiers for objects worldwide, gigantic data aggregation, incommunicable readers, and personel tracking and profiling. incommunicable placement of tags by fellowships is an easy way to get data from consumers. The buyer will feel safe buying a goods with no knowledge of an Rfid tag embedded in their clothing. These tags theoretically could track a someone nearby the world if there were readers in exact locations throughout the world. Personal data may also be embedded in these tags giving data as detailed as your healing history. Prada and Swatch use embedded tags in their clothing, and Benetton did as well, but a boycott of Benetton was prosperous and they removed their tags. There is no law against fellowships embedding tags, and only California and Utah have made legal requests to convert the situation.

Companies who use Rfid can compile gigantic amounts of data on consumers, including goods likes or dislikes, buying power or even designate history. Rfid makes it easy to amass this data and to designate correlations. If a corporation owns many market they can consolidate data between fellowships and create new data on buying habits.

Hidden readers violate people's privacy much the same way incommunicable tags do. Gillette and Accenture are introducing "silent commerce" which embeds tags on people's products and readers in strategic locations without the consumer's knowledge. These fellowships have experimented with different reader locations ranging from incommunicable rug locations to shelve locations and even incommunicable in floor tiles. Readers could even be installed in doorways on road lights, anywhere that citizen have to pass through, and promptly all data embedded in the tag is broadcast to the reader. If this were to happen privacy would be impossible because you would never know if the products you have contain tags, and you never know when you are within proximity to a reader.

The disadvantages of Rfid hinge mainly on privacy concerns, technological imperfections, cost of the technology and no proven way to set up an Rfid ideas for a company. The government and corporations are the two groups that offer the most concern for privacy issues. incommunicable tags and readers threaten to take away human mystery, gift a world where citizen see, feel and hear only what the government and large corporation want citizen to.

Iii. future of Rfid

The future of Rfid is uncertain, however, the technology is here to stay. fellowships have many obstacles to overcome to make the technology a feasible option to be implemented. Privacy issues and will persist, although cost for Rfid systems will decrease. In order for Rfid to be successful, fellowships must work with privacy advocate groups to institute a fair way to implement Rfid without alienating their customers.

Technology will continue to institute for Rfid and many new applications will be realized. Automation will be a side-effect of Rfid development, in the supply chain and in daily activities. Contactless cost methods are already available, as well as automated keycards to open doors. Rfid tags installed in cars with readers on the roads and freeways will alert the authority if you are breaking the law. Supermarkets will finally be able to realize their shopping cart checkout ideas once prices fall to a more affordable price. Fresh foods, metals and liquids will all be Rfid compatible in the near future. If privacy issues are not watched closely, citizen will become tagged and there will all the time be someone watching and analyzing every person's decisions.

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