RFID: Facts, Myths & Innovation

A great deal has been written lately about RFID; much of which comes from individuals or organizations pushing a particular agenda. Retailers tout "supply chain efficiencies", their suppliers cry foul as they must bear the cost of supporting retailer RFID mandates, RFID technology vendors have their hype engines at full throttle, and privacy hawks are playing the "Big Brother" card. As is always the case with emerging technologies (RFID isn't new, but it is emerging) the truth lies somewhere in the middle ground.

RFID is an enabling technology; it is not a solution unto itself. The key benefit of RFID is its ability to provide granular data on unique items, cases, and pallets of products as they move from manufacturing through consumption (the supply chain). This differs from linear barcode systems that apply codes that are not unique (.e.g. every widget has the same barcode). In addition, barcode readers require "line-of-site"; the barcode scanner must "see" the lines of the barcode in order to read the data. RFID does not require line of sight as tags can be read through a variety of materials. RFID readers can also read multiple tags at one time, whereas barcode scanners are limited to processing one barcode at a time.

For RFID tags designed to support the EPCglobal standard (adopted by leading retailers, the U.S. DOD, etc.), the data stored on RFID tags is limited to a unique electronic product code (EPC). Once read, this EPC number must be interpreted by a system or individual familiar with the EPC code definitions if they are to understand the information about the product to which the tag has been affixed. If you do not know how to interpret this code the information on the tag will be perfectly useless.

In the world of EPC standards, no personal consumer information will be stored on RFID tags. The data referenced by the EPC code that is stored on the tag is maintained in one or more secure databases (e.g. manufacturers, distributors, retailers, etc.) so that these organizations can efficiently track the movement of goods through the supply chain. If someone were to hack into a system where this information was stored they may learn who manufactured the product, when it was made, and the organizations that handled this product (distributors, retailers, etc.) up to the point when the product was received at the retail store where it is to be sold to the consumer. In effect, "Big Brother" (I couldn't resist) is taking care of you by making sure your local retailer has the products you want to buy on the shelves when you want to buy them.

Myth:

FID tags will enable companies to track consumers to influence purchasing habits and invade their privacy.

Fact:

Unless you pay for everything with cash, you have no privacy…get over it. Retailers, banks, and several other organizations have been tracking your purchasing habits for many years. Credit cards, ATM cards, cell phones, passports, etc., all generate data tied directly to you that is distributed across a wide range of large (hopefully secure) computer systems. RFID does nothing to change this.

RFID tags are encoded and applied by product manufactures (e.g. consumer packaged goods companies, pharmaceutical manufacturers, etc.) and then read by their distributors, shipping companies, retailers, etc. as these products make their way to market. Because of the complex physics required to make RFID tags work (see How RFID Tags Work), a variety of tags must be tested to identify the most appropriate tag and tag location for the product being tagged. In addition, companies along the supply chain must install, configure, and tune a variety or RFID readers and antennas so that they will read a high percentage of the RFID tags that travel through those organizations. This requires time, money, and the skills of highly qualified RFID engineers. Organizations will not take on this cost burden unless they can identify a return on this investment (e.g. reduce/eliminate out-of-stock conditions).

Myth:

RFID tags will allow retailers and government agencies to track my movements and thieves will be able to identify my personal property from a distance.

Reality:

NONSENSE!!! Depending on the tag size, frequency, etc., passive RFID tag read distances vary from <1" to approximately 10'. Passive RFID tags have no inherent location/GPS capability - location information is determined strictly by a reader "checkpoint" (e.g. tag ABC passed reader 123 at 10:40 AM...). Regardless of the claims of self appointed privacy hawks... Passive RFID tags can NOT be tracked by satellites and thieves will NOT be able to use a handheld RFID reader to see what is in your house!

Back to the data...

Once the EPC data from RFID tags is collected it must be analyzed…this is where the value of RFID lies. RFID will enable organizations to get more detail than ever possible on the way goods move through the supply chain. This detail can save companies a great deal of money while providing a higher level of service to their customers. [END]

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