The current issue and full text archive of this jourmal is available atwww.emeraldinsight.com/0140-9174.htmMRNIs RFID right for your30,8organization or application?PedroMReyesDepartment of Management and Entrepreneurship,570Hankamer School of Business,Baylor University,Waco,Texas, USA, andPatrick JaskaDepartment ofBusinessAdministrationandSystems,CollegeofBusiness,UniversityofMaryHardinBaylor,Belton,Texas,USAAbstractPurpose-The purpose of this paper is to help managers determine whether RFID is appropriate fortheir particular organizational needs and to give them some guidelines for implementing an RFIDsolutionDesign/methodology/approach-This paper is a general review of RFID and offers instructionsto managers who are in a dilemma as to whether RFID is right for their organization or applicationFindings-Theresults of this studyprovidemanagerswithprocedurestofollow that will enablethemtominimizeRFIDimplementationproblems.Practical implications-For practicing managers,theseimplementation procedures haveimportant implications. As with any technological implementation, the needs of the organization,itspersonnel, and customers mustbeat theforefront of theprocess.Originality/value-This paper offers managers a valuable perspective on the RFID implementationprocess for their organization.Keywords Radio, Frequencies, Supply chain management, Technology led strategyPapertypeResearchpaperIntroductionRadio frequency identification (RFID) has, for the most part, been flying below thebusiness-innovation and best practice radar.Much hype and press havebeen given toRFIDsincethemandatesbyWal-MartandtheUSDepartmentofDefense(DoD)(ubanandWyld,2004;Smith,2005;Wicks,etal,2006;Hardgraveand Miller,2006;ReyesandJaska,2006; Wyld,2006; Reyes et al,2007).Whether RFIDrepresents a new direction insupplychainmanagementtheoryandpracticeisaquestionofno small consequenceFurthermoreitisnotreasonabletobelievethatallfirmswilladoptRFID(RevesandJaska,2006),yetmany managers are in a dilemma as to whether RFIDisrightfor theirorganizationorapplication (Reyes et al.,2007).In someways,RFID is likeanyotherpast technological implementation,but in some ways it is not.The actual benefits andrisks of RFIDcoupled with themanagers'evolving perceptions about these benefitsand risks will determine the speed at which RFID moves from introduction/developmentaltomaturitystage.SeveralRFIDdescriptivepapershavebeenpublishedduringthepast few years,such as Karkkainen and Holmstrom (2002),Juban and WyldEmerald(2004),Srivastava (2004),Angeles (2005),and Wyld (2006).The purposeof this paper isto aid managers in their quest to determine whether RFID is appropriate for theirparticularneeds and give themsomeguidelines for implementingan RFIDsolution.Management Research NewsAlthoughRFIDhasbeenaroundformorethan50vears,recentmandatesbyWalVol.30 No.8,2007Mart and theDoDhave sparked massiveinterest in itpotentialfor improving supplypp. 570-580CEmerald GroupPublishingLimitedchain performance(Angeles,2005;Hardgrave and Miller, 2006;Reyes andFrazier,0140-91742007).Also contributing to this,RFID-interest is the rapid acceleration and availabilityDOI 10.1108/01409170710773706
MRN 30,8 570 Management Research News Vol. 30 No. 8, 2007 pp. 570-580 # Emerald Group Publishing Limited 0140-9174 DOI 10.1108/01409170710773706 Is RFID right for your organization or application? Pedro M. Reyes Department of Management and Entrepreneurship, Hankamer School of Business, Baylor University, Waco, Texas, USA, and Patrick Jaska Department of Business Administration and Systems, College of Business, University of Mary Hardin Baylor, Belton, Texas, USA Abstract Purpose – The purpose of this paper is to help managers determine whether RFID is appropriate for their particular organizational needs and to give them some guidelines for implementing an RFID solution. Design/methodology/approach – This paper is a general review of RFID and offers instructions to managers who are in a dilemma as to whether RFID is right for their organization or application. Findings – The results of this study provide managers with procedures to follow that will enable them to minimize RFID implementation problems. Practical implications – For practicing managers, these implementation procedures have important implications. As with any technological implementation, the needs of the organization, its personnel, and customers must be at the forefront of the process. Originality/value – This paper offers managers a valuable perspective on the RFID implementation process for their organization. Keywords Radio, Frequencies, Supply chain management, Technology led strategy Paper type Research paper Introduction Radio frequency identification (RFID) has, for the most part, been flying below the business-innovation and best practice radar. Much hype and press have been given to RFID since the mandates by Wal-Mart and the US Department of Defense (DoD) (Juban and Wyld, 2004; Smith, 2005; Wicks, et al., 2006; Hardgrave and Miller, 2006; Reyes and Jaska, 2006; Wyld, 2006; Reyes et al., 2007). Whether RFID represents a new direction in supply chain management theory and practice is a question of no small consequence. Furthermore, it is not reasonable to believe that all firms will adopt RFID (Reyes and Jaska, 2006), yet many managers are in a dilemma as to whether RFID is right for their organization or application (Reyes et al., 2007). In some ways, RFID is like any other past technological implementation, but in some ways it is not. The actual benefits and risks of RFID coupled with the managers’ evolving perceptions about these benefits and risks will determine the speed at which RFID moves from introduction/ developmental to maturity stage. Several RFID descriptive papers have been published during the past few years, such as Ka¨rkka¨inen and Holmstro¨m (2002), Juban and Wyld (2004), Srivastava (2004), Angeles (2005), and Wyld (2006). The purpose of this paper is to aid managers in their quest to determine whether RFID is appropriate for their particular needs and give them some guidelines for implementing an RFID solution. Although RFID has been around for more than 50 years, recent mandates by WalMart and the DoD have sparked massive interest in it potential for improving supply chain performance (Angeles, 2005; Hardgrave and Miller, 2006; Reyes and Frazier, 2007). Also contributing to this, RFID-interest is the rapid acceleration and availability The current issue and full text archive of this journal is available at www.emeraldinsight.com/0140-9174.htm
of computer science and Internettechnologies thathave been evolving and re-shapingRadiofrequencysupplychainmanagementprocessesandpractice.Aspartof theconsiderationsforidentificationRFIDimplementation,managersmustfilterthroughthehvpeandunderstandwhatthetechnology can and cannot do.As withmanytechnologies.thehype and themisunderstandingcanbedamagingtoexpectations(HardgraveandMiller.2006)OneofthebarrierstoadoptingRFIDattheforefrontofmanagerialconcernisthedifficulty in quantifying the cost-benefit ROI (return on investment)in acquiring this571technology.YettherearemanyfactorscontributingtoRFIDadoption,andtheyaresimilar to the recent internet-based e-commerce technology (c.f.Hong and Zhu, 2006)These contributing factors are theory-based and are summarized in TableI (which isbynomeansanexhaustivelist).Other issues that managers should be concerned with include security and privacy(Jonesetal.,2004:Boulard,2005;So,StuartandLiu,John.2006).Theseissuesmustbeat theforefront of anyRFID considerations.Organization data security policies mustbeexaminedtoensurecustomerdataisnotcompromised.Forthesupplychainsecuritypolicies areoutlinedinEPCNetworkmeasures(So,Stuartand Liu,John,2006)setforthbyEPCglobal(aninternationalRFIDstandardsbody).Privacy advocates are concerned about tracking customers (Ferguson, 2006;Boulard,2005).Several solutions are available to eliminate tracking of tags afterproducts are sold including“kill tags",password lock,cage approach,active-jamming,and cryptography (Boulard, 2005).These techniquesneed tobe explored todeterminewhich isbestforanorganization'sparticularapplication.Adoption and implementation of RFID can be aided by the following procedures/guidelines that meet the needs of the organization.Managers should be willing tochangeoradjustprocessesinordertogetthemostoutofRFIDimplementationImplementationconsiderationsMany approaches to technology adoption and implementation can be found in recentacademicandpractitionerliterature(Angeles,2005;Curtinetal,2007;QuaddusandTheoryFactorsIT adoption (Beatty et al, 2001)Perceived benefitsComplexityOrganizational compatibilityTopmanagementsupportInnovation theory (Beatty et al, 2001)EntrytimingOrganizational readinessExternal factorsTechnology,organization, environmentTechnology competence(TOE) (Zhu et al., 2003)Firm scopeSizeConsumer readinessPartner readinessCompetitivepressureIndustrial organizational (Porter, 1981)FirmperformanceisenabledorconstrainedbyindustrystructureTable I.Resource-based view(Barney,1991)PresenceofresourcesthatmeetcertainContributing factors forconditions,suchasvalue,rarity,imperfectRFID adoptionimitabilityandlackofsubstitutability
Radio frequency identification 571 of computer science and Internet technologies that have been evolving and re-shaping supply chain management processes and practice. As part of the considerations for RFID implementation, managers must filter through the hype and understand what the technology can and cannot do. As with many technologies, the hype and the misunderstanding can be damaging to expectations (Hardgrave and Miller, 2006). One of the barriers to adopting RFID at the forefront of managerial concern is the difficulty in quantifying the cost-benefit ROI (return on investment) in acquiring this technology. Yet there are many factors contributing to RFID adoption, and they are similar to the recent internet-based e-commerce technology (c.f. Hong and Zhu, 2006). These contributing factors are theory-based and are summarized in Table I (which is by no means an exhaustive list). Other issues that managers should be concerned with include security and privacy ( Jones et al., 2004; Boulard, 2005; So, Stuart and Liu, John, 2006). These issues must be at the forefront of any RFID considerations. Organization data security policies must be examined to ensure customer data is not compromised. For the supply chain, security policies are outlined in EPC Network measures (So, Stuart and Liu, John, 2006) set forth by EPC global (an international RFID standards body). Privacy advocates are concerned about tracking customers (Ferguson, 2006; Boulard, 2005). Several solutions are available to eliminate tracking of tags after products are sold including ‘‘kill tags’’, password lock, cage approach, active-jamming, and cryptography (Boulard, 2005). These techniques need to be explored to determine which is best for an organization’s particular application. Adoption and implementation of RFID can be aided by the following procedures/ guidelines that meet the needs of the organization. Managers should be willing to change or adjust processes in order to get the most out of RFID implementation. Implementation considerations Many approaches to technology adoption and implementation can be found in recent academic and practitioner literature (Angeles, 2005; Curtin et al., 2007; Quaddus and Table I. Contributing factors for RFID adoption Theory Factors IT adoption (Beatty et al., 2001) . Perceived benefits . Complexity . Organizational compatibility . Top management support Innovation theory (Beatty et al., 2001) . Entry timing . Organizational readiness . External factors Technology, organization, environment (TOE) (Zhu et al., 2003) . Technology competence . Firm scope . Size . Consumer readiness . Partner readiness . Competitive pressure Industrial organizational (Porter, 1981) . Firm performance is enabled or constrained by industry structure Resource-based view (Barney, 1991) . Presence of resources that meet certain conditions, such as value, rarity, imperfect imitability and lack of substitutability
MRNXu, 2005; del Aguila-Obra and Padilla-Melendez,2006; Hong and Zhu,2006).In manyrespects,RFIDadoptionisverymuchlikeanyothertechnologyadoption(before30,8RFID).Themanager mustalignthetechnologyrequirementswiththebusinessrequirements, but in the caseofRFIDthismaymeanthatthebusinessprocesses mayhavetobechangeddrasticallytoadapttothetechnology.Thesearesomeofthesameissues that organizations are facing when adopting ERP, integrated software systems,electronicdatainterchange,ande-commerce.Businessprocesseshavetobeexamined572inlightofthetechnologyanditscapabilitiesTodeterminewhetheradoptingRFIDwillbebeneficial toanorganizationorone ofitsprocessingapplications,amanagermustfollowaprocedurethatis conducivetotheorganization'sbusinessplan and objectives.Clearly,thefirst step is to achieveanunderstandingofwhatRFIDcanandcaannotdo.ThentheprocessforbuildingtheROIbusinesscaseshouldbeginwiththefirmandthentheotheraspectsofthesupplychain delivery system.In this case, the RFID application must be implemented to meetDorganizationalbusinessgoals.If,forexamplethebusinessgoalistoimprovecustomerservice through more accurate/timely order delivery,the managermust analyze thebusiness processes presently in place and determine whichprocesses need tobechanged tofullyutilize theRFIDtechnology.Moreover,performancemetrics should bealigned with the firm's objectives and reflect such topics as improved cash-to-cashcycles, leaner inventories,reduced stock outs, and more accurate data (Spekman andSweeny,2006)In the caseof mandatory requirementsfroman organization's customer, suchas inthe case of Wal-Mart, themanager or organization has no choice but to adopt RFID.Eveninthissituationmanagementmustlookattheprocessespresentlyinplaceandre-engineer thoseprocesses toget the full benefit of RFID.Simplyreplacing barcodetechnology withRFID will not,inmostcases,improve efficiencyor effectivenessofthedeliveryormanufactureofa productor serviceThe following is an eight-step guideline for implementation Table II gives asummary of theguidelines for implementation.Theseguidelines extend those found inAngeles (2005)andBean (2006)Step I:Understand what RFID can and cannot doRFID is an exciting technology that has potential benefits for improving supplychainoperations.However,beforeafirmcanbegintoimplementRFIDtheremustbeaclearunderstanding of what RFID is and is not.As with past technologies, hype tends tocreate unrealistic expectations,which could lead to artificial perceptions of thetechnology.In this paper, wehighlight six of the ten popular myths identified by Hardgrave andMiller (2006)inthis subsection.All tenofthesepopularRFIDmythsaresummarized inTableIIIMyth #3: People can drive down the street and read RFID tags inside your home,thusknowing everything about you and your stuff is a concern for privacy.While it ispossible toread a RFID tag without a direct line of sight (a key advantage of RFID)-itis not likely for tags to be read inside one's home for several reasons.First, the readrange forpassive UHF tags is about10-30 feet.Therefore,fora person to driveby one'shomeandsendasignaltogothroughthehousetheywouldhavetoencirclethehousetoreadeverything.Second,andperhaportantfactor,isthatcurrentlytheonlypallets andcases arebeingtagged.Hence,therearefew (ifany)individual items
MRN 30,8 572 Xu, 2005; del Aguila-Obra and Padilla-Mele´ndez, 2006; Hong and Zhu, 2006). In many respects, RFID adoption is very much like any other technology adoption (before RFID). The manager must align the technology requirements with the business requirements, but in the case of RFID this may mean that the business processes may have to be changed drastically to adapt to the technology. These are some of the same issues that organizations are facing when adopting ERP, integrated software systems, electronic data interchange, and e-commerce. Business processes have to be examined in light of the technology and its capabilities. To determine whether adopting RFID will be beneficial to an organization or one of its processing applications, a manager must follow a procedure that is conducive to the organization’s business plan and objectives. Clearly, the first step is to achieve an understanding of what RFID can and cannot do. Then the process for building the ROI business case should begin with the firm, and then the other aspects of the supply chain delivery system. In this case, the RFID application must be implemented to meet organizational business goals. If, for example, the business goal is to improve customer service through more accurate/timely order delivery, the manager must analyze the business processes presently in place and determine which processes need to be changed to fully utilize the RFID technology. Moreover, performance metrics should be aligned with the firm’s objectives and reflect such topics as improved cash-to-cash cycles, leaner inventories, reduced stock outs, and more accurate data (Spekman and Sweeny, 2006). In the case of mandatory requirements from an organization’s customer, such as in the case of Wal-Mart, the manager or organization has no choice but to adopt RFID. Even in this situation management must look at the processes presently in place and re-engineer those processes to get the full benefit of RFID. Simply replacing barcode technology with RFID will not, in most cases, improve efficiency or effectiveness of the delivery or manufacture of a product or service. The following is an eight-step guideline for implementation. Table II gives a summary of the guidelines for implementation. These guidelines extend those found in Angeles (2005) and Bean (2006). Step 1: Understand what RFID can and cannot do RFID is an exciting technology that has potential benefits for improving supply chain operations. However, before a firm can begin to implement RFID there must be a clear understanding of what RFID is and is not. As with past technologies, hype tends to create unrealistic expectations, which could lead to artificial perceptions of the technology. In this paper, we highlight six of the ten popular myths identified by Hardgrave and Miller (2006) in this subsection. All ten of these popular RFID myths are summarized in Table III. Myth #3: People can drive down the street and read RFID tags inside your home, thus knowing everything about you and your stuff is a concern for privacy. While it is possible to read a RFID tag without a direct line of sight (a key advantage of RFID) – it is not likely for tags to be read inside one’s home for several reasons. First, the read range for passive UHF tags is about 10-30 feet. Therefore, for a person to drive by one’s home and send a signal to go through the house, they would have to encircle the house to read everything. Second, and perhaps the most important factor, is that currently only pallets and cases are being tagged. Hence, there are few (if any) individual items
Radio frequencyStep in implementationDescriptionPersonnel involvedidentificationUnderstand what RFIDGetting past the mythsKey personnel that willuse the RFID system and ITcan and cannot doAnalysis of present systemAnalyze the processes andKey personnel using theoutcomesofthepresentsystempresent system, IT, andmanagement573Build a ROI business caseAnalysis of what potentialKeypersonnel using thebenefits could be reachedpresent system, IT, andwithRFIDsenior managementRequirements analysisAnalyze the requirementsandKey personnel using thepresent system and slatedhowRFIDwillbeimplementedtousethenewRFIDsvstemIT, and managementPrototype testingTest the proposed RFID systemKey personnel that will usetheREIDsvstemandITImplementationImplement the RFID systemAll personnel using the RFIDsystem and ITMonitorMonitor theRFID system toKey IT personnel andmakesurethatitmeetsexpectationsmanagementManagement, IT, and keyTable II.Continuous improvementLookforimprovementstoprocessespersonnel using the RFIDand technology changesGuidelines forSystemimplementationtagged that aretaken home.But as adoption moves to item level, then the number ofitemswithtagsenteringthehouseholdwill increase.Myth#6:Youmust have100per cent reads at100per centof theread points forRFIDto beuseful.This has been a so-called"good"argument for not implementing RFID.Intheory,it ispossiblefor100percent of tagged items tobe read at 100per cent ofthereadpoints-but it is not practical.Therearemanythings thatcould causea missedread,suchasapersonorobjectmovinginfrontof thereadpoint.Butitishighlyprobablethatatagged itemwillbe seenat oneormorereadpointsMyth#7:Major retailershavemandated thatall supplierstag all productsforallstores.However,currentlyonlyasmallgroupofsuppliersistaggingasmallgroupofproducts going to a small group of stores. Wal-Mart, Metro, Albertson's, and Best Buyareamong theretail giants that havean initiative inplaceforadoption,If successfuladoptioncontinues,thenitispossiblethattherewillbeaneedformorevendorstostarttaggingtheirproducts,whichissimilartothebarcodeadoption.Myth#8:RFID is costing theaverageWal-Mart vendor$23million annually wasbased onanAMRResearch estimate.However,actual costs havebeen reported tobeless than the estimate.Among the factors that may have contributed to this differenceinclude(l)the scopeof implementation suchasa“slapandship'strategyto satisfyacustomer requirement, (2)technologypricesdeclining,and (3)actualdeploymentofRFIDis notas difficultas expected.Myth#9:RFIDisthepanaceaforcreatingtheperfect supplychain,solvingall oftheproblems in thesupplychain.WhileRFIDcan improve supplychainperformance-eitherintheefficiencyoreffectivenessofprocessimprovements,itisnotthepanaceaforcreatingtheperfectsupplychain.FirmsmustberealisticindeterminingwheretodeployRFIDbasedon identifiedsupplychainoperationswherethebenefitsmaymakeeconomicsense
Radio frequency identification 573 tagged that are taken home. But as adoption moves to item level, then the number of items with tags entering the household will increase. Myth #6: You must have 100 per cent reads at 100 per cent of the read points for RFID to be useful. This has been a so-called ‘‘good’’ argument for not implementing RFID. In theory, it is possible for 100 per cent of tagged items to be read at 100 per cent of the read points – but it is not practical. There are many things that could cause a missed read, such as a person or object moving in front of the read point. But it is highly probable that a tagged item will be seen at one or more read points. Myth #7: Major retailers have mandated that all suppliers tag all products for all stores. However, currently only a small group of suppliers is tagging a small group of products going to a small group of stores. Wal-Mart, Metro, Albertson’s, and Best Buy are among the retail giants that have an initiative in place for adoption. If successful adoption continues, then it is possible that there will be a need for more vendors to start tagging their products, which is similar to the barcode adoption. Myth #8: RFID is costing the average Wal-Mart vendor $23 million annually was based on an AMR Research estimate. However, actual costs have been reported to be less than the estimate. Among the factors that may have contributed to this difference include (1) the scope of implementation such as a ‘‘slap and ship’’ strategy to satisfy a customer requirement, (2) technology prices declining, and (3) actual deployment of RFID is not as difficult as expected. Myth #9: RFID is the panacea for creating the perfect supply chain, solving all of the problems in the supply chain. While RFID can improve supply chain performance – either in the efficiency or effectiveness of process improvements, it is not the panacea for creating the perfect supply chain. Firms must be realistic in determining where to deploy RFID based on identified supply chain operations where the benefits may make economic sense. Table II. Guidelines for implementation Step in implementation Description Personnel involved Understand what RFID can and cannot do Getting past the myths Key personnel that will use the RFID system and IT Analysis of present system Analyze the processes and outcomes of the present system Key personnel using the present system, IT, and management Build a ROI business case Analysis of what potential benefits could be reached with RFID Key personnel using the present system, IT, and senior management Requirements analysis Analyze the requirements and how RFID will be implemented Key personnel using the present system and slated to use the new RFID system, IT, and management Prototype testing Test the proposed RFID system Key personnel that will use the RFID system and IT Implementation Implement the RFID system All personnel using the RFID system and IT Monitor Monitor the RFID system to make sure that it meets expectations Key IT personnel and management Continuous improvement Look for improvements to processes and technology changes Management, IT, and key personnel using the RFID System
MRNMythReality30,8#1: RFID is new - or RFID technologyEarly uses of RFID has existed sinceis mature and stableWorld War II, however the use of passivetags in supply chainis new#2:RFID canbeusedtocontinuouslyContinuoustracking would requiremillionstrackpeople/objectswherevertheygo-of readers and antennae located in a very574anywhereclose proximity to produce the necessaryoverlappingelectromagnetfields-isnoteconomically justified#3:People can drivedown the streetTheread rangeforpassiveUHFRFIDisaboutand read RFID tags inside your home,10-30 feet, which means that a person wouldthus knowing everything about youhave to be extremely close to read the tagsand your stuff#4:RFIDtags contain informationRFID tags have limited storage and cannotabout everything, including sensitivehold all of the information as suggestedpersonal information#5:RFID is generating millions ofYes, RFID will produce more data. However,terabytes of datathe challenge is not howto store it, but ratherhowtomineitforbusinessvalue#6:You must have 100 per cent readsIn theory, yes. But not practical. There areat 100 per cent of the read points formany things that could cause a missed readRFIDto be usefulBut it is highly probable that a tagged itemwillbeseenatoneormorereadpoints#7: Major retailers have mandatedCurrently only a small group of suppliers isthat all supplierstag all productstagginga smallgroupof productsgoingtoforall storesasmallgroupofstores#8:RFID iscosting the averageScopeofimplementation,technologypricesWal-Mart vendor $23 million annuallydeclining, and actual deployment of RFIDis not as difficult as expected are factorsthat contributed to vendors spending muchlessthan estimated#9:RFID is the panacea for creatingYes, RFID can improve supply chainthe perfect supply chainperformance -either in the efficiency oreffectivenessofprocessimprovements.However,notthe panacea for creatingthe perfect supply chain#10: RFID is replacing the barcodeWhile RFID does offer several advantagesoverbarcodes.It is more likelyto beacomplementarytechnologyinthepresentandnearfuture.ButsinceRFID isadataTable II.carrier, it is possible it will replacebarcode at some pointUnderstanding the RFIDSource: Hardgrave and Miller (2006)MythsMyth #1o:RFID is replacing the barcode is possible, but not in the near future.Thereality is that these two technologies are complementary“data storingtechnologies,andeachserveadifferentpurposeinmanagingsupplychainoperations.Step 2:Analysis of present systemAs with any technology analysis, the requirements of the system must be determined.This should bea thorough analysis of the system or process that is in place.Thisanalysis requires detailed process flows and analysis conducted by interviewing all
MRN 30,8 574 Myth #10: RFID is replacing the barcode is possible, but not in the near future. The reality is that these two technologies are complementary ‘‘data storing’’ technologies, and each serve a different purpose in managing supply chain operations. Step 2: Analysis of present system As with any technology analysis, the requirements of the system must be determined. This should be a thorough analysis of the system or process that is in place. This analysis requires detailed process flows and analysis conducted by interviewing all Table III. Understanding the RFID Myths Myth Reality #1: RFID is new – or RFID technology is mature and stable Early uses of RFID has existed since World War II, however the use of passive tags in supply chain is new #2: RFID can be used to continuously track people/objects wherever they go – anywhere Continuous tracking would require millions of readers and antennae located in a very close proximity to produce the necessary overlapping electromagnet fields – is not economically justified #3: People can drive down the street and read RFID tags inside your home, thus knowing everything about you and your stuff The read range for passive UHF RFID is about 10-30 feet, which means that a person would have to be extremely close to read the tags #4: RFID tags contain information about everything, including sensitive personal information RFID tags have limited storage and cannot hold all of the information as suggested #5: RFID is generating millions of terabytes of data Yes, RFID will produce more data. However, the challenge is not how to store it, but rather how to mine it for business value #6: You must have 100 per cent reads at 100 per cent of the read points for RFID to be useful In theory, yes. But not practical. There are many things that could cause a missed read. But it is highly probable that a tagged item will be seen at one or more read points #7: Major retailers have mandated that all suppliers tag all products for all stores Currently only a small group of suppliers is tagging a small group of products going to a small group of stores #8: RFID is costing the average Wal-Mart vendor $23 million annually Scope of implementation, technology prices declining, and actual deployment of RFID is not as difficult as expected are factors that contributed to vendors spending much less than estimated #9: RFID is the panacea for creating the perfect supply chain Yes, RFID can improve supply chain performance – either in the efficiency or effectiveness of process improvements. However, not the panacea for creating the perfect supply chain #10: RFID is replacing the barcode While RFID does offer several advantages over barcodes. It is more likely to be a complementary technology in the present and near future. But since RFID is a data carrier, it is possible it will replace barcode at some point Source: Hardgrave and Miller (2006)