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Europe Gets Serious About EPC
Europe has been ambivalent about UHF technology and EPC in particular, but attendees at last week's RFID Journal LIVE! Europe focused on the potential benefits of using RFID in supply-chain and logistics operations.
Oct 30, 2006—Europe has yet to jump on the Electronic Product Code bandwagon the way companies in the United States and, to a lesser extent, Asia have. However, if our RFID Journal LIVE! Europe event last week was any indication, Europe is getting serious about embracing EPC. Attendees were knowledgeable, engaging in discussions with speakers and other attendees, and interested in potential supply-chain and logistics applications.
There are a number of reasons why the mood at this year's event was more focused on the potential of EPC to deliver value. New ultrahigh-frequency interrogators (readers) based on the second generation EPC protocol now work with new, relaxed regulations proposed by the European Telecommunications Standards Institute (ETSI). In a panel discussion I hosted, Christian Plenge, RFID project lead for Metro Group International (MGI), said the performance of ETSI-compliant UHF EPC interrogators was better than expected. "The problem now is not being unable to read tags," he said. "It is reading tags on items that are not on the forklift but on a nearby shelf."
Another reason European companies are more focused on EPC technology is that there are more examples of companies that have done pilots or actual rollouts using UHF EPC systems that show a clear return on investment. During the conference, a number of speakers talked about the benefits they are seeing. Plenge said Metro could save up to $8 million in Germany just from automating the process of receiving pallets, for instance. Among the other companies that made compelling presentations were TNT Express, a logistics company that is tracking goods from Asia to Europe with RFID; BGN, a large Dutch bookseller tagging every book in one of its stores; and KPN, a Dutch phone company that is applying RFID tags to the packaging of individual mobile phones (the tags are removed at point of sale).
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