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'RFID carries unconditional guarantee of success' - Study

07 Feb '09
17 min read

— Visualization of physical goods flows (also: tracking and tracing),
— Automation of status information on the condition of goods (also: condition monitoring),
— Support for transport security (e.g. warning emergency services in cases of accidents with hazardous goods),
— Documentation for liability issues (e.g. record of irregularities during transport).

These four fields are key factors for the transport industry in boosting the efficiency of its own processes.

Fascination of realized projects:
German logistics provider DHL estimates that today there are over 1.3 million pallets worldwide marked with an RFID tag. However, cost-income ratios at present limit the use of RFID to larger transport units and high-value products.1 This means that McKinsey consultants are very optimistic in forecasting that in 2010 RFID tags will be attached to 1 in 3 packages and no less than 50% of all pallets, but to just one single article in 20.

The following small selection from a massive spectrum of realized projects points out the innovative potential of RFID.
— With 200,000 marked transport crates, Danish fishermen document date of catch, type of fish and fishing method. The fish traders feed this information directly into their own systems.
Thanks to this fast way of processing they can offer a freshly caught and hence higher-quality product.
— A pharmaceuticals manufacturer is intent on preventing counterfeiting of high-value lifestyle drugs. The bulk packages of the products are fitted with an RFID tag with an electronic certificate of authenticity (e-pedigree). Using a reader, pharmacists can quickly check the authenticity of the drug.
— In the jewellery trade, RFID helps in inventory-taking and preventing theft. A trader marks his jewellery pieces with a miniature RFID tag. This tag links the physical good with information in the trader's database. In this way, the trader can quickly check his inventory every evening for completeness and, if anything is missing, use the product description in his search.
— An operator of staff cafeterias stores information on the meals issued on an RFID tag in the plates. This information is then read at the checkout, enabling the avoidance of waiting times and manual errors by the cashier.
— Passengers of one of Germany's local transit associations can pay for tickets by near-field communication via an RFID tag integrated into their mobile phone. When entering and leaving a vehicle, passengers hold their mobile in front of the reader. A central system collects this information and prepares the monthly invoice with the cheapest applicable fee.
— The EU wants to prevent pets from spreading diseases across national borders. Therefore, the EU requires that vaccinations be documented in the pet's ID document. To be able to allocate the ID unambiguously, the animals are marked with an RFID tag under their skin.
— Blind people have an easier time of finding everyday objects (e.g. drugs, keys) in their homes if these objects are marked with an RFID tag. In this way, RFID enables a blind person to enjoy a more independent lifestyle.

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