2006 – the year of RFID: IT experts

BLUE BELL, Pa. — Radio Frequency Identification (RFID) technology will reach a significant turning point by the end of 2006, according to a leading worldwide information technology services firm.

Unisys Global Visible Commerce says that next year is the year many companies will move beyond the pilot phase, implementing RFID infrastructures that will increasingly become a core element of their businesses.

“Skeptics of RFID, who see significant technical and regulatory challenges or no return on investment, are wrong. The same was true with barcode technology 30 years ago — many in the retail and consumer products industry considered it to be costly, technically flawed and unnecessary,” said Peter Regen, vice-president of Global Visible Commerce. “Today barcodes are on 87 percent of the items in the supermarket, and the adoption rate of RFID across multiple industries is already faster. Many of the key building blocks are already in place, and market drivers across industries will fuel adoption.”

According to the company, adoption within the aviation industry will more than double in 2006 due to the recent ruling, which allows passive RFID to be used for goods carried on airplanes and aircraft parts. The international shipping and trucking industry will also make great strides by using lessons learned by the early adopters — retail and consumer goods, automotive, healthcare and life sciences and the military.

“RFID is a winning technology. It will eliminate uncertainty in the supply chain, reduce the need for inventory ‘safety stocks’ and enhance productivity,” said Dr. Donald Bowersox, John H. McConnell University Professor of Michigan State University. “Clearly, we will experience significantly higher adoption rates as RFID applications enhance supply chain visibility.”

RFID adoption made great strides with significant milestones in 2005, according to Unisys. But suppliers have been implementing RFID to meet the mandates established by major retailers since 2003.

However in 2006, the outsourcing of support for RFID infrastructures will increase more than 400 percent, the company predicts. This will be a direct result of companies beginning to treat these infrastructures as a core part of their business, which will be a testament to the technology’s growing maturity.

“Cynics will be astounded by the technology’s increased maturity,” said Regen. “Major advances will also be made as organizations learn to manage the data generated through their RFID implementations and use it to increase efficiencies. Companies will save billions of dollars through these efficiencies in the coming years.”

— via Truckinginfo.com