Friday 28th Oct 2016 - Logistics Manager

Lack of RFID understanding hinders adoption

A perceived lack of standards and an unrealistic understanding of cost implications are still hindering the adoption of radio frequency identification (RFID) technology among many UK organisations, delegates attending last month’s Softworld Supply Chain event heard.

Delegates at the event, held at Birmingham’s NEC, heard that press hype and high profile RFID implementation projects have resulted in businesses dismissing the technology due to these preconceptions, when there could be a legitimate business case. The experts argued that prices are reducing, and that this year is a good year to start pilot projects due to the standards already developed – such as EPCglobal.

In addition, they agreed that the benefits of RFID are not purely limited to the retail sector – as many organisations believe, and that other industry sectors can benefit greatly from this technology.

“Many organisations dismiss this technology without proper investigation. ROI is not simply about cost reduction. It should also be about what the technology enables you to do that you couldn’t do before,” said panelist Nigel Montgomery, director of European Research at AMR Research. “The panel agreed that the case for RFID is certainly very strong, but may not suit all organisations at this time. In many cases companies have yet to leverage barcoding and other technologies; RFID may seem a step too far.”