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At the CPG item level, will it be R.I.P for RFID?

The application hasn’t lived up to forecasts, but is it too soon for obituaries?

Pw 59964 Anthony Sterling 2

Radio Frequency Identification (RFID) had existed for decades prior to being applied to consumer packaged goods (CPG); and, of those applications, the most ambitious is at the item-level. What's envisioned could not be more ambitious: every packaged good, worldwide, individually identifiable by means of an RFID-enabled tag. For practical reasons, the tag would be on the package in the overwhelming majority of instances; therefore, given the ubiquity of packaging in modern life, little imagination is required to grasp the potential scope and breadth of item-level RFID.

The stakeholders are diverse and their competing positions (more so than technological hurdles) have been the main impediments to the fulfillment of early predictions about RFID, which, in the main, have proven to have been overhyped. That's the past; and although the once predicted stampede has slowed to a crawl, is a complete stop (or even a reversal) inevitable?

The technology explained

RFID is a type of information technology (IT) whose components include a tag, a reader, and a computer system. A tag contains an antenna and an information-encoded microchip. The tag transmits its information, via radio waves, to a reader. The reader relays the information to a computer system. The computer system (typically connected to a database) makes decisions in accordance with its programming.

There are two types of tags. A passive tag does not have its own power source and is activated when radio waves are received from the reader. An active tag has its own power source (battery). Despite that difference, both types relate to the reader as described in the preceding paragraph; however, an active tag can be read from a greater distance than can a passive tag.

The Electronic Product Code (EPC)

The EPC should not be mistaken for a bar code. A bar code contains information at the SKU level, whereas an EPC contains information at the individual unit level. By way of example, the bar code identifies the item categorically (a box of a certain brand of cereal), but the EPC identifies the item specifically (an exact box of that brand of cereal, different from all others). Not every RFID application requires the exactness of an EPC, but EPC is at the core of RFID applications at the unit-level.

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