Discover your next big idea at PACK EXPO Las Vegas this September
Experience a breakthrough in packaging & processing and transform your business with solutions from 2,300 suppliers spanning all industries.
REGISTER NOW & SAVE

Real-world RFID: An expert speaks

In this exclusive interview, RFID expert John Greaves of Deloitte Consulting separates RFID myth from reality, while calling on packagers to “seize the moment.” To read more of Packaging World's RFID coverage, sign up for PW's new RFID Antenna e-newsletter - it's FREE!

RFID is on the table with Deloitte's John Greaves, center, who is flanked by Packaging World's Rick Lingle, left, and Patrick Re
RFID is on the table with Deloitte's John Greaves, center, who is flanked by Packaging World's Rick Lingle, left, and Patrick Re

Among the industry’s leading experts in the field of radio-frequency identification, John Greaves was recently lured away from his own company, ePC Group, to join Deloitte Consulting LLP, a well-known consultancy with offices worldwide. As global firm director for RFID, he heads up Deloitte’s activities on the RFID front.

Greaves took time out of his busy schedule this past summer to visit with editor Patrick Reynolds and technical editor Rick Lingle at Packaging World’s Chicago office. Despite several wireless interruptions from leading consumer packaged goods companies that are among his clients, Greaves deftly and energetically revealed his view of RFID’s impact on packaging.

PW: How do we even begin talking about RFID and its impact on packaging?

Greaves: First of all, RFID is a well-established technology, it’s not something Wal-Mart invented. Wal-Mart plays a vitally important part in RFID and has the most impact for your readership, more so than the Department of Defense’s initiative. RFID is really about WEC—wireless-enabled commerce, whether it’s tracking P&G diapers or sneakers in a shoebox. And that’s why Wal-Mart got involved.

PW: Doesn’t ‘WEC’ take RFID outside the realm of packaging?

Greaves: No, actually it takes it more into packaging. That’s why packagers are so strongly impacted by RFID, including the cost of deployment. They will also have to determine where that tag will go. Reengineering of packaging will increase—we will see changes to corrugated cases as a result because that’s often where the tag will be placed.

PW: What are the reasons for packagers to adopt RFID?

Greaves: There are three immediate reasons to adopt. I call them FCA—federal, commercial, advantage. In the case of federal, you adopt RFID, possibly for something like pharmaceuticals, because a law requires it. For commercial, it’s because [a company] like Wal-Mart has told you to. Or, finally, you adopt RFID because you see that your use of the technology can create for you a competitive or business advantage.

PW: Can you compare the bar code with RFID?

Greaves: The problem is that the bar code is yesterday’s news, it’s undynamic. Once printed, a bar code remains in that state forever. Another difference is that radio-frequency anything is subject to regulation—nothing that has ever been used in the supply chain before has had regulation built around it of the scope of RFID. You have to recall that the bar code was a pretty complex undertaking, too. If you changed a historical article from bar code to RFID, you can see a similar genesis. The only difference is that the bar code was already eight years old before Wal-Mart adopted it, and there was single-digit adoption in terms of percentage across the market. This time it’s the other way around.

PW: What does that mean for packagers?

Greaves: It is essential for packagers to come to market very rapidly with RFID-enabled packaging solutions. The first into production with minimal pricing impact as a result of innovation and adoption, flexible approach, and clear understanding will have competitive advantage on an enormous scale.

PW: What are your thoughts about Wal-Mart’s role in RFID?

Greaves: Wal-Mart understands that all the [data] infrastructure in place is warped and wobbly, and to make RFID work, hundreds of millions of dollars are needed to resolve these challenges. Wal-Mart understands best of all that we cannot simply apply RFID over the current infrastructure; otherwise, it would topple, and for that alone I think they are superb. In terms of RFID and Wal-Mart’s determination to adopt it, and their understanding of what the challenges are, they are outstanding and have done a thorough and exhaustive job. Wal-Mart recognizes that the foundation of RFID is data synchronization.

PW: What is data synchronization, and why is it important?

Greaves: Let me illustrate it this way: Stick an RFID tag on a package, yawn. Make an RFID antenna work in the warehouse, hohum. But tell me you can transmit the data from those RFID readers from that warehouse to your global data center in Toledo, and I say, congratulations! Provide data integrity, data synchronization, data cataloging, and data transfer, and now we’re talking! It gives packagers the ability to call forward the correct amount of packaging for their next order because now they know the real amount of goods that need to be produced. That’s because they now have the correct information from the marketplace. Then we can do something about the 20% excess of goods that sit in the supply chain because we can’t get accurate information about what it is and where it is. Companies make way too much product every month because they aim to meet supposed demand rather than real demand from the marketplace. RFID provides the first real way to grasp the opportunity to recover that 20% because it has the most important aspect to it: OHIO, or Zero Human Intervention Operation.

PW: OHIO is crucial?

2024 PACK EXPO Innovations Reports
Exclusive access: Packaging World editor-curated reports revealing PACK EXPO's most groundbreaking technologies across food, healthcare, and machinery sectors. Each report features truly innovative solutions selected from hundreds of exhibitors by our expert team. Transform your operations with just one click.
Access Now
2024 PACK EXPO Innovations Reports
Break out of the ordinary: see what’s new in packaging & processing!
At PACK EXPO Las Vegas, you’ll see machinery in action and new tech from 2,300 suppliers, collaborate with experts and explore transformative solutions. Join us this September to experience a breakthrough in packaging and processing.
REGISTER NOW AND SAVE
Break out of the ordinary: see what’s new in packaging & processing!