Problems with RFID

Despite the emerging promise and benefits of RFID, the technology still has shortcomings that prevent it from becoming the one-stop supply chain management solution some would claim it is. Understanding these shortcomings will give you a more realistic idea of what this technology can do for your supply chain.

The first problem that you may encounter when trying to implement an RFID technology initiative in your supply chain is integration difficulty. Like any supply chain technology solution, RFID must first pass the test of compatibility. If your suppliers, vendors, and other partners do not have the willingness or capability to integrate RFID technology into their day-to-day operations, you will encounter resistance and possibly technical problems down the line.

Both the United States Department of Defense and Wal-Mart have realized the potential of RFID technology and are using it to improve their business effectiveness. Both organizations require that their vendors adopt RFID solutions as well and place tags on shipments to improve efficiency. However, the integration process has been problematic due to the fact that RFID tags do not always read correctly when scanned, due to interference from several factors that I’ll explain below. Until these technical issues are worked out, even large vendors such as Wal-Mart and the Department of Defense will not be able to achieve the full benefits of an integrated RFID supply chain.

As mentioned, there are still a host of technical problems that affect RFID technology. First, because RFID tags make use of radio waves, these devices are susceptible to any outside force that interferes with the smooth transmission of radio signals. This type of electromagnetic interference can be caused by a number of sources, ranging from normal background radiation in the environment, to deliberate frequency jamming by certain individuals, to even the electromagnetic pulses caused by solar storms. In some cases, even product packaging can dampen transmission of these radio signals.

The consequences of this type of signal interruption depend on the context in which the RFID tags are being used. In a supermarket, the consequences could be under-stocked items or longer lines, which would be annoying. In a military supply chain, on the other hand, the consequences could be a shortage of weapons and food for soldiers on the front lines of a battle, which would be disastrous.

Other problems that can arise include RFID reader collision and RFID tag collision. RFID reader collision occurs when there is an overlap in the coverage area of multiple RFID readers. Because RFID tags are designed to only be able to transmit to one reader at a time, this can cause several problems. One is that the signals from overlapping readers can interfere and prevent the item from being scanned. Another is that the signal convergence can lead to the same tag being read more than once, leading to duplicate and inaccurate scanning results, which would cause supply chain execution problems.

Another common problem arises from the RFID tags. When large numbers of products with RFID tags are stored together in the same scanning field, the reader can energize multiple tags at once, which sometimes causes them to transmit their signals back to the reader simultaneously. This information overload interferes with the RFID reader’s function and can prevent it from scanning the items, slowing down inventory times and interrupting the supply chain.

Another source of resistance to the adoption of RFID by many organizations stems from ongoing privacy concerns. One concern is that RFID tags can be scanned even after they exit the supply chain, and without anyone’s knowledge. Because RFID tags are non-specific in the scanner that they transmit data to (meaning an RFID tag doesn’t distinguish between a scanner located in a high-level security clearance area in the Pentagon, or the inventory scanner in a department store – it still transmits its data regardless), anyone with an RFID scanner could conceivably access data encoded on an RFID tag. This problem is exacerbated by the fact that many RFID scanners are easily portable, and RFID tags can be read at a considerable distance, as well as quite difficult to remove.

In addition, the enormous amount of data created by RFID technology is an issue unto itself. For large companies in particular, the constant scanning and reading of items in a supply chain create an influx of data that is too large to be analyzed effectively. This can lead to a backlog of information that defeats the purpose of gathering information in the first place. After all, what good is detailed information about the speed at which items move out of a warehouse if that detailed information is from four years ago?

Conclusion

Radio frequency identification (RFID) is a technological means of using radio frequencies to transmit information. This technology is generally used for identification and tracking. RFID devices can be either passive (without an independent power supply), active (with an independent power supply), or semi-active/semi-passive (has an independent power supply, but also receives power from a radio scanner).
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RFID technology can benefit your supply chain system in several ways, including: Greater supply chain visibility; increasing transportation and shipment times through the use of vehicle scanning; tracking product paths in the event of a product recall; allowing inventory of products located in areas that are dangerous or physically difficult to reach; and monitoring the safety of non-perishable items in order to prevent spoiled items being sold.
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RFID technology also has several drawbacks that have limited its adoption on a more widespread scale. Both RFID tags and radio scanners can be negatively influenced by ambient electromagnetic waves. They are also susceptible to radio frequency overlaps that can interfere with the transmission of data or create duplicate scanning results. Worries about the potential abuse of the technology have also raised privacy issues.

In the end, RFID is a technology that has a wide array of potential uses that are just beginning to be explored. While not without its faults, this technology is already changing the way that many companies do business - for the better. With proper implementation, RFID is a technology that can improve your supply chain process and increase your profits.

Problems with RFID

Conclusion

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