| While the general consensus is that RFID is too | | | | of RFID systems to its suppliers." |
| expensive and difficult to integrate into existing ERP | | | | SATO printers are compatible with two types of |
| CRM systems, interoperability issues are being | | | | RFID labels: HF 13.56 MHz, widely used for ticketing, |
| addressed by software and label suppliers. | | | | smart cards and product identification: and UHF |
| RFID is being heralded as the universal panacea for | | | | 868MHz favoured for the extended read-ranges |
| improving supply chain management. However, while | | | | within supply chain applications. Initially UHF RFID will |
| it undoubtedly brings benefits in terms of improved | | | | be used on outer packaging and pallets. |
| asset management and profitability, the technology is | | | | As the technology uptake progresses and unit prices |
| expensive, much more complex than barcoding and | | | | for RFID labels comes down, SATO expects item |
| difficult to integrate into existing ERP and CRM | | | | tagging to become economically viable. |
| systems, says IDC systems. | | | | Scanning difficult items |
| US-based AMR Research estimates that a company | | | | ALS says a wide range of industries will benefit from |
| shipping 50 million cases annually to Wal-Mart, will | | | | RFID equipment in terms of reduced inventory levels |
| have to spend $13-23 million simply to meet the | | | | and improved asset utilisation, elimination of |
| retailer's requirements. While an extreme example, it | | | | counterfeiting and easier product recalls. The |
| tends to give weight to the view that the relative | | | | company says it is keeping abreast of standards in |
| cost of RFID systems is too high. | | | | the global frequency bandwidths available, protocol |
| Challenging this view and supporting the argument | | | | standards and hurdles associated with tagging and |
| that the longer-term benefits of RFID outweigh the | | | | scanning "difficult" items such as metal cans and liquid |
| short-term costs, is the example of Scottish and | | | | product. |
| Newcastle Breweries. Since fitting RFID tags to its | | | | ALS will provide upgrade kits for users of some of |
| high value beer kegs, the company is saving $25 | | | | their existing labelling systems, allowing them to write |
| million annually as a result of reducing the number of | | | | to smart labels with tags embedded. |
| kegs lost or not returned by customers. | | | | Lost cost one-way tags |
| IDC has addressed the problem of interfacing RFID | | | | An RFID-enabled label printer has been launched by |
| into an existing IT system with its Simplitrak | | | | Etiquette. Nova RFID will allow production of |
| software, designed to provide a gateway between | | | | combined human readable text, graphics, barcode and |
| the RFID readers and the WMS or ERP system, | | | | RFID tags in one self adhesive label. |
| providing a flexible low cost route for companies | | | | This is ideal for low cost, one-way tags through |
| requiring complete visibility of their supply chains. | | | | supply chains. It also makes it possible to cost |
| Bringing RFID into the factory requires tailoring the | | | | effectively introduce RFID tags into supply chains |
| installation for your particular environment and | | | | alongside existing barcode systems. |
| products and ensuring you have the right antennas, | | | | Designed for use for low cost, one-way tags through |
| readers and other hardware and networking | | | | supply chains. It also makes it possible to cost |
| components. | | | | effectively introduce RFID tags into supply chains |
| Labelling systems | | | | alongside existing barcode systems. |
| "Many labelling systems companies tied themselves | | | | Designed for use in outer case or pallet label |
| technically into one or other of the various chip | | | | applications, the NovaRFID machine is based on the |
| standards that are likely to be applied in different | | | | Imaje Nova range of thermal image label printers. |
| countries and industries," explains SATO's RFID | | | | Continuous labels are fed through the Nova 6 RFID |
| business development manger Richard Scott. "It's a | | | | and Nova 8 RFID at 250mm/second. Labels come |
| bit like the VHS/Betamax scenario - some will find | | | | with an RFID tag embedded between the paper and |
| themselves out on a limb by backing the wrong | | | | the adhesive. |
| protocol". | | | | The passive RFID tag has the data written as the |
| Already a full service provider for RFID products, | | | | label passes through the printer, resulting in a |
| SATO has formed strategic relationships with other | | | | traditionally printed label with an industry standard |
| companies to enable its printers to programme RFID | | | | RFID tag under the surface. The high frequency tags |
| chips while printing self adhesive labels or card tags. | | | | to IS0 15693 operate at 13.56MHz. |
| "One of the key drives to implement RFID | | | | We expect this new generation of combined RFID |
| technology is coming from major retailers such as | | | | tag and label printers to be in demand as companies |
| Tesco and Wal-Mart," says Scott. "In June 2004 | | | | can now implement RFID technology without having |
| SATO was appointed a Gold Partner by the METRO | | | | to replace every piece of barcode equipment in their |
| Group along with 16 other businesses including | | | | supply chain. This is the sort of cost effective |
| Microsoft. We are supplying equipment for the rollout | | | | solution which could really see RFID take off. |