Question:
The hype surrounding RFID continued in the air cargo industry throughout 2006. Will companies actually implement the technology in 2007, or does the industry need more time?
Expert:
Teresa Jones
Senior research analyst at the Butler Group
The RFID phenomenon
Airlines in the Middle East, and indeed throughout the world, are keeping tabs on the development of radio frequency identification (RFID). The upcoming technology could result in massive change for companies dealing in air cargo operations, especially in terms of increased efficiencies and reduced operating costs.
The concept of RFID technology is relatively simple. A cargo company will place special tags on each item that requires tracking. This could include cartons, pallets, vehicles and even animals. RFID tags can carry all the same information as barcodes and more. The tags come in different sizes and with different encoding options, so companies can choose the right combination of price/capabilities for the application. Moreover, barcodes are read-only, whereas read/write RFID tags can accept and store new and updated information that they receive as they are used.
A handheld or fi xed reader then scans the tags using radio frequency waves to exchange data, such as product code, manufacturers and destination. Whereas traditional barcoding requires one-by-one scanning of a visible barcode label, RFID readers can simultaneously scan hundreds of tagged items, whether or not the tag is visible. The reader can simultaneously read all the tags within their range, up to 800 tags per second, depending on the equipment and environment.
The cost issue
As well as scanners or readers, additional hardware and software will be needed, adding to project costs. To date, the scanning process has been somewhat inaccurate, with miss-scans being common, but accuracy is improving as organisations gain an improved understanding of the best positioning of readers, and as devices evolve. So although the cost of tags maybe an issue (however they are coming down in price as volumes grow), it is only a small part of overall costs of any project, which needs additional hardware and applications to process the data and then do something value-added with it. This is likely to be what is putting many organisations off doing projects with RFID, even if they can see that there may be some benefits.
Can cargo companies really benefit?
Air cargo and logistics is certainly an area where the ability to know what is where at any particular time is vital, and accuracy often varies enormously depending on what methods are used. Automatic tracking by the use of tags and readers reduces human error.
Undoubtedly RFID will become increasingly used in manufacturing and the supply chain, but there are some novel uses around as the technology improves, including solar-powered yet washable clothing that allows the wearer to be located easily using a combination of GPS positioning and internet access – which could be useful for skiers in potential avalanche areas as well as military uses.
A somewhat different innovation comes from US company Somark, which has developed a chip-less RFID ink that can be used to tattoo and track both animals and humans. The technology will initially be used in the livestock industry to help identify and track cattle, illustrating again that traceability through the supply chain is an area where this type of technology can add value.
RFID tagging can only be of real benefit if the data being transmitted is clean and of high quality. This is not a technology issue, but one that has been at the heart of many failed initiatives particularly relating to supply chains. Such technology is highly dependent on centralised product coding – hence close involvement of Electronic Product Code (EPC) initiatives with RFID technologies.
The future of RFID
Innovation in the use of RFID technology continues apace. However, most organisations still have significant hurdles to overcome before they will be ready to reap the benefits that can accrue from it. A telling comment comes from CSC, the computing services giant, which has been significantly involved in projects using RFID with its customers over recent years. A spokesperson said that many RFID projects seem not to have clarity about what the problem is in the first place, maybe because the drive is to “do something with RFID” rather than solve a real business problem. It is vital, as with all applications of technology, to keep on asking: What is the problem that needs fixing?
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