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RFID Heats Up in Latin America

The time is right for Mexico, Central America and South America to embrace RFID, and companies are doing so to compete at home and abroad.


By Elizabeth Wasserman

Aug. 1, 2007—Until recently, news about radio frequency identification pilots and deployments in Latin America has been scarce and sporadic. While some companies in the region are sophisticated in their use of technology, many others have yet to embrace the use of bar codes, let alone RFID. And with no retailer or government mandates within these countries requiring suppliers to use RFID in their supply chains, as there have been with the U.S. Department of Defense and Wal-Mart in the United States, Tesco in the United Kingdom and Metro in Germany, there was little to compel companies to adopt the technology.

Today, while Latin America still lags behind the United States, Europe and Asia in RFID implementations, RFID projects throughout the region are growing rapidly. Indeed, Hewlett-Packard Brazil recently won the first RFID Journal Award for Best RFID Implementation (see "Keeping Tabs on Printers"). The company is using RFID to track individual printers, as well as improve supply chain management and manufacturing and distribution processes.


While Latin America still lags behind the United States, Europe and Asia in RFID implementations, RFID projects throughout the region are growing rapidly.
Moreover, Mexico could be one of the first countries to secure its pharmaceutical supply chain. A directive from the Mexican government last year required manufacturers and distributors to put RFID tags on medicines sold to individuals covered under Seguro Popular, a government health-care institution that operates similarly to an insurer and serves roughly 4 million families. While implementation has been delayed due to a change in administration in the Mexican government, the pharmaceutical industry has been testing the technology in preparation, according to Jorge Morales, director of operations for the International Supply Chain Education Alliance Mexico.

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