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Developments in Practice X:Radio Frequency Identification(RFID)–An Internet for Physical Objects by

H.A.Smith and B.Konsynski

Communications of the Association for Information Systems(Volume 12,2003)pp.301-311

KEY SPONSORS OF RFID INITIATIVES

● The U.S.Government invested$9.3million towards funding proof-of-concept

projects related to homeland security[Werb and Sereiko,2002].

● The U.K.Home Office established a Chipping Goods initiative and is spending

€8.5 million on eight RFID projects in a variety of retail applications[Tierney,2002).

● The MIT Auto-ID Center is coordinatingan international RFID standards

initiative. With its many corporate sponsors (e.g., Wal-Mart,Proctor and Gamble, Philip Morris,Johnson and Johnson, Pfizer, Westvaco, Kimberly-Clark,Coca-Cola, Pepsi, Home Depot, UPS and the USPostal Service) it is conducting a three-phase project to track products through a supply chain.Phase 1 is already successfully completed [Hodges et al,2002].

II.RFID TECHNOLOGY OVERVIEW

● E-Tags.

● Electronic product code(EPC).

● Object name service(ONS).

● Physical markup language(PML).

RFID technology is superior to barcode technology because its user does not need to know where an object is and does not need to get close to scan it.Since tags can be read at a distance and do not require line-of-sight,they lend themselves to many more applications across a supply chain.

Strategic Implication.RFID technologies represent a common standard for data

storage and retrieval that could improve collaboration and data sharing between non- competing organizations.

III.APPLICATIONS OF RFID

Airport Baggage Handling.

INITIAL RESULTS OF RFBAGGAGE TAGGING

● 25% greater throughout

● improved reading accuracy

● faster airplane loading

● reduced compensation claims

● reduced turn around penalties

● improved security

● reduced handling costs.

Electronic Payment.

Retail Theft Prevention.

Library systems.

Parking.

Postal services

Homeland Security

Automobile tracking and compliance.

Equipment inspections.

Military use.

1..Materiel location.

2.Weapons deterioration.

3.Hazardous materials tracking.

4.Asset tracking.

IV .POTENTIAL CLASSES OF RFID APPLICATIONS

Supply Chain Management Applications.

1. Perpetual inventory management.

2. Automatic scanning.

Product/asset identification.

Logistics and Transportation Applications.

Healthcare Applications.

Customer Service Applications.

Theft and Waste Prevention Applications.

Personal and Asset Status Applications.

IV .COST AND IMPLEMENTATION CONSIDERATIONS

SIX TYPES OF RFID COSTS

● The cost of the tag itself

● The cost of applying tags to products

● The cost of purchasing and installing tag readers

● System integration costs

● The cost of training and reorganization

● The cost of implementing application

If a five cent read-only e-tag can be achieved,it will make RFID a viable alternative to barcodes.