Debunking RFID Myths

Filed in archive Supply Chain on February 24, 2006

Ferret, the Australian site, offers an "RFID Myths Debunked" article written by an executive of Manhattan Associates.

Note how the article reflects evolving attitudes toward and understanding of RFID over the past two years.

Consider one example. In the past RFID was routinely described as a barcode replacement. Now, with the resurgence of interest in barcodes and as more is learned from pilots and implementations, people are more likely to acknowledge that there is a place for everything and the two are likely to co-exist (certainly for a long time to come):

Myth #5: The EPC is an RFID replacement of the current bar codes (GTIN/UPC).Truth: Electronic Product Code (EPC) used in RFID tags and bar coding are considered complementary data capture technologies.

Even with large-scale adoption of RFID, there will be a continued need for bar coding to co-exist with RFID into the foreseeable future. While current bar coding offers the same number for every case of a given SKU, EPC is a standard way to serialise all inventory.

The unique attributes of RFID enable improved visibility into supply chain movements and history.

With RFID technology, the level of information is deeper, allowing inventory to be tracked and data more freely shared between suppliers and retailers.

While RFID has the potential to offer a closer technical fit and operational benefits in certain applications, it will not serve as a replacement for bar codes. Both types of technology have a place in today's business environment.

Be sure to interpret the article in the context of supply chain related applications, and not other kinds of RFID such as contactless payment cards. Also, the article has a decided Western focus and does not take into account all that is happening in other countries like China. Still, it is a good piece.