2Sustain

A few years ago, analysts were predicting that RFID technology would revolutionize supply chain dynamics. Yet, for a variety of reasons, that transformation has still not materialized. Are technology glitches and privacy concerns to blame? Or, is RFID simply too costly? What about the problems RFID tags pose for recycling/reusing efforts? What will it take to resolve those issues?

Earlier this week, an article at TechNewsWorld took a look at questions like these.  In “RFID: A Revolution in a Holding Pattern,” author Denise Deveau outlines the major hurdles that have blocked widespread adoption of RFID technology.

For instance, at some level, RFID progress has been hindered by confusion, and even hyperbole, in the field. “Part of the problem behind the disillusionment has been the age-old dilemma of something overpromising and underdelivering,” Deveau writes. “Also, RFID has become a classic case of miscommunication and misunderstanding.” Other obstacles include: the cost of implementation and integration, uncertainty regarding data sharing and cooperation across industries, and concerns about privacy and environmental factors.

Of course, the recession is a likely culprit, too. “Times are tough, so the whole mood is one of caution,” says Lino Casalino, a partner with PricewaterhouseCoopers, in the article. “We're seeing a lot of clients focused on staying fiscally responsible, and RFID has simply not matured enough for them to take it on right now."

But even so, I have seen RFID success stories beginning to emerge. As an example, Deveau mentions Sam’s Club, where RFID is being used for loss prevention and improved inventory tracking. Likewise, pharmaceutical companies (and others) are keen on employing this technology for high value inventory.

And that’s why  I’m keeping tabs on this rapidly evolving field. Once the technology matures and federal regulations get squared away, RFID holds great potential for improving supply chain security, efficiency, and sustainability.