
AN INTRODUCTION TO RFID 17
Cost
The most-discussed cost element for RFID systems is the cost of individual tags. How-
ever, this is just a part of the overall cost. Successful adoption of RFID will require
changes to business processes and information systems, personnel training, and, in
some cases, customer education.
Accuracy
Many of today’s RFID systems are far from robust. Most of the projects we surveyed in
early 2005 reported a read accuracy rate of between 80 and 99 percent. What this
means is that if we move a pallet carrying 100 tagged boxes past an RFID reader, the
reader will fail to recognize anywhere from 1 to 20 tags. There are many reasons for
this, but most stem from the inherent challenges in moving liquids and metals using RF
communications.
Implementation
Introducing RFID will invariably change your business processes, from how items are
labeled to how they are selected, palletized, cycle counted, and so on. For each step in
the business process, you will need to incorporate capabilities for exception process-
ing—that is, what to do if the RFID technologies are not working properly. For exam-
ple, if an RFID reader stops working or a label falls off, how will you continue? Apart
from the RF side, there are many challenges to overcome in integrating the RFID data
and procedures into your existing systems and the business processes they support.
RFID Adoption Guidelines
With things ...