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Achieving Transformational Benefits With RFID

Companies need to think about radio frequency identification as more than just a technology for tracking lost tools or parts bins.
By Mark Roberti
Jun 03, 2019

Last week, I explained why I believe radio frequency technology is as transformational as computers and the Internet have been (see RFID Is as Important as Computers). Unfortunately, many companies view RFID as simply a technology for tracking tools, parts bins or work-in-process (WIP). It certainly can do these tasks, but looking at the technology so narrowly would be akin to using your firm's computers only for writing reports or maintaining accounting ledgers.

RFID has the potential to do so much more. So how should companies think it? They should view RFID as a transformational technology that can be deployed as part of their infrastructure—that is, part of every department—in order to enhance their strategic advantage.

If, for example, you are a low-cost producer in your industry, you should look at RFID as infrastructure that can be deployed across your supply chain, production facilities, offices and so on, in ways that take cost out of the system and enhance your ability to compete on price. If your company is a high-end retailer that competes on its ability to serve and impress customers at your stores, then you should look at ways to use RFID throughout your organization to deliver the highest-quality service and the greatest customer experience.

I don't advocate going out and deploying RFID everywhere all at once. In sessions I give on strategy at our annual RFID Journal LIVE! conference and exhibition, I always encourage companies to have a vision for what their firm will be like when RFID is used everywhere (like computers and the Internet are). However, I advise them to deploy it in stages, with each project delivering a measurable return on investment or strategic benefit.

To do this, companies need to educate senior managers about RFID and what it can do. Going to events and hearing how other companies in your industry are employing the technology is important. Reading up on advances in RFID, as well as case studies, is critical. Visiting university RFID labs is valuable. And being part of the community and sharing your ideas can lead to unexpected revelations about how to use RFID in new and innovative ways that can improve your company's market position and bottom line.


Kris Hughes 2019-07-11 01:03:25 PM
Thank you for bringing peoples attention to this. We've been working for a while to try and educate people on the benefits of RFID beyond simple tasks like Inventory. Using the technology as it's base function of a sensor allows it to be used in tasks like access control and building/process automation. But a more modern area of emphasis is to ensure that employees have UHF tags as part of their badge so the business can use RFID to perform functions like Time & Attendance and automated Check In/Out of assets. In addition, by using real-time floor plans we're able to implement safety and emergency response tools to identify and account for the location of personnel in the event of a disaster (fire earthquake, chemical leak, etc.). These are just a few examples. As you've mentioned, the open discussions continue to generate new ideas for using RFID. Everything starts with an idea. Kris Hughes InformaTrac, Inc. (www.InformaTrac.com)

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