RFID: The Next Generation (page 3)

-- Logistics Management, 5/1/2005

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Generation 2, moreover, isn't the end of the story. Standards development is continuing for various elements of the EPCglobal Network, a secure system that connects servers containing information about items identified by electronic product codes. Software specifications are set for ratification within the next few months, Grasso says.

Those developments can't come soon enough for many in industry. The Wal-Mart mandate and the increasing "buzz" about RFID has encouraged a competitive atmosphere among equipment vendors that are eager to get their products out first, says Tim Harrington, vice president of product strategy at Santa Clara, Calif.-based WhereNet, a provider of wireless asset- tracking and management solutions. "Those involved are looking out for the best interest of the market as a whole, but they also want to be in the best position when a standard is ratified … to bring their products to market very quickly," he says.

Whether or not the Gen 2 standards spur high-volume production of lower-cost tags and equipment, logistics managers shouldn't wait to get on board the RFID movement, Geary advises. "As with any rapidly evolving space, waiting for the next release may condemn you to waiting forever, because there is always something [better] on the horizon."

The more important consideration, Geary adds, is for users to learn how to use new RFID technology to achieve a return on their investments. He urges shippers to get moving now: "Early adopters have already done it, late adopters are getting going, and laggards are going to wake up one morning at a huge disadvantage."

Author Information

Bridget McCrea is a freelance writer who frequently covers supply chain technologies and distribution strategies.

An RFID Glossary

Auto-ID Center: An academic project at the Massachusetts Institute of Technology (MIT) that defined initial RFID standards. The Auto-ID Center in 2003 transferred its intellectual property to EPCglobal, which is charged with further developing and commercializing RFID standards.

Air Interface Protocol: The authorization for use ("protocol") of RFID transmission frequencies is governed by local law. A tag ideally should be readable worldwide, but local laws mandate regional variations in reader configurations.

Edgeware: Hardware that runs applications or middleware close to the "edge" of the network, managing and filtering data from readers and other devices.

EPCglobal: A not-for-profit industry group that developed the electronic product code (EPC), which provides a unique identifier for items in the supply chain, as the basis for global RFID standards. EPCglobal released EPC Generation 1 in 2003 and Generation 2, the next iteration of the standards, in December 2004.

Middleware: Software that resides on a server, regulating and integrating communication between readers and enterprise applications.

RFID reader: A device that sends signals to and receives signals from RFID tags. A reader is connected to an antenna and a network, which links captured data back to an enterprise system.

RFID tag: Consists of a chip that stores data and is attached to an antenna. There are two types of tags: Passive tags have no on-board power supply; the tag's antenna captures energy from RF signals to turn on the chip. Active tags have a battery that acts as an on-board power supply, enabling the tags to continually transmit signals.

Tag Class: Two tag types are defined in Generation 1 standards. Class 0 tags are programmed with identifying numbers at the point of manufacture; Class 1 tags can be programmed in the field.

Source: Steve Geary, Supply Chain Visions

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