U.K. Seal Maker Puts RFID to the Test

According to Lyon, the EPCglobal RFID Test Center offers users complete vendor independence in a non-sales environment. "The center will help dispel the myths about RFID in the market—show how the technology works, that the standards and regulations are in place. All that is left is for organizations to come to the center and discover the real business benefits of RFID," he says. "The center is not a showroom or museum to RFID, but a real-world environment aimed at helping U.K. businesses understand how it can work within their supply chains, and how it can be implemented effectively." Lyon adds that attendees will not be approached with a sales follow-up after visiting the center.

"It may be that in the course of testing the best combination of technology for a particular business issue, that RFID or EPC may not be the best fit," Lyon says. "The center will recommend the best approach for that particular business issue."

Welsh says the RFID experts he worked with at the center offered a common-sense approach, advising his company not to expect RFID to be a panacea, but rather to take a measured approach. "Certainly, there is a danger in thinking RFID will do everything for you," Welsh says. "And you can't do everything at once."

AESSEAL plans to analyze its current expense of shipping with the bar-code labels, including costs related to labor, lost parts and out-of-stocks, then compare those costs against RFID technology investments. With the results from the test center, he says, "we can go back to our warehouse and talk about the practicalities of tracking with RFID in our real-world environment."

If AESSEAL finds that RFID technology is cost-effective—by providing a savings through reduction in labor and lost items—the company expects to implement the system in two distribution centers: one in Darby, U.K., the other in Knoxville, Tenn. By May 2008, the plan is to install fixed RFID interrogators at the dock doors and apply RFID tags to the cardboard cartons of items shipped.

Eventually, AESSEAL hopes to implement RFID anywhere the technology can be used to track assets within its supply chain and DCs. Tags could be placed not only on product packaging, but also on shelves to help staff members locate a particular product quickly within a distribution center. It might also consider utilizing the technology to identify employees working in the warehouses. "We're open to having that kind of conservation," Welsh says. The company has three additional warehouses in the United Kingdom, and is currently in the process of acquiring more.