Secure scanning

zoom

Benefits in this respect are being felt further along the supply chain too. For example, if cooperating ports share this information, the electronic tag will inform port authorities that a container scanned in Dubai need not be scanned again when it arrives in the US.

"This is having an impact on ship turnaround times," says Tarek Hassaniyeh, sales manager of Symbol Technologies ME. "These days, it is not just a matter of getting the cargo out, you have to provide a lot of information regarding the container, especially if it is going to Europe or the US. Having such information on a tag - and quickly and reliably being able to communicate that to the authorities speeds the whole process."

Whilst the potential benefits touted for the supply chain are frequently trumpeted, it is process management that has so far seen the keenest take-up. "The fastest growing use of RFID is currently in human applications," Iarocci attests. "An airport facility in Asia is using RFID to track over 5000 workers, so it's possible for managers to see where workers are at every stage of the day. This is a distinct leap from the swipe card system, which is open to abuse and, even when used properly, merely confirms presence on the site."

The data derived from RFID enabled operations can provide managers with a quantifiable set of figures that can be used to improve decision-making and planning. However, the amount of data automatically generated can be vast, with some operations running to several terabytes per day - far too much for many existing IT infrastructures to cope with. Also, without having the proper systems in place to apply this knowledge, the acquisition of raw data alone will do nothing to improve performance, and in fact, may throw up further problems regarding information management.

Middleware applications are available that filter this data so real time tracking can be digested. Through marrying these technologies, logistics managers will be able to get the most from these systems; the cautionary caveat is the notion that tags and readers can do this in isolation has proved a common misconception.

RFID has been touted as a transformational technology in terms of its potential impact on commercial processes and systems. However, in many ways it is a logical evolutionary progression from the barcode as a way of gaining increased labour productivity through automation. When teamed with allied technologies, such as Wireless Sensor Networks (WSNs), it can remotely sense objects and determine not only their identity, and track their position, but also integrate data and report on properties such as pressure, humidity and temperature.

Iarocci uses the analogy of a golf bag. ‘‘There may be 14 clubs in the bag; you don't play every shot with your favourite one. Just as a putter is best for the green, and a sand wedge suited to the bunkers, RFID will perform where it is best placed to, but other technology, including bar-coding should be in the armory too. Looking for one magic answer won't help. RFID is just another club in your bag."

Disparate rates of implementation across global supply chains do, however, mean the humble barcode is likely to remain a key feature of shipping and freight management for at least the foreseeable future. That said, Balasubramanian Rajagopolan, managing director of Swift Freight International, issues a warning to logistics managers and freight forwarders who intend on playing a waiting game with RFID. ‘‘As more and more seaports adopt this technology, it will become difficult for freight forwarding companies who have not moved to this yet. Those who have already adopted the technology will be able to do tasks such as container tracking and clearance faster that those who haven't.''

Regional take-up rates differ for a variety of reasons, but low wage economies, unsurprisingly, seem the most reluctant to adopt RFID. ‘‘There are parts of the world where labour costs are so low it's hard to convince people that the technology is worth investing in,'' says Iarocci. "What they don't see is that with the right application, technology can be more reliable; you can't always just rely on bodies on the ground."

Rajagopolan echoes his sentiments. ‘‘Old methods of operations will have to give way to better and more efficient methods, which add value to the business in terms of faster delivery times to the customer and lower agents costs," he says. "Firms that change to newer technologies like RFID, with a better return on investment in mind, will certainly benefit from this. This will clearly set apart the market leaders from the rest."

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM