With Wal-Mart and the U.S. Department of Defense (DoD) throwing their weight behind its implementation, RFID (radio frequency identification) is hurtling toward widespread adoption. Over the next decade, the technology is expected to shake up supply chain operations, tracking products through every stage in the supply chain. Encoded smart labels will store information such as product identity, date of manufacture and destination, thereby increasing efficiencies in receiving and reducing administrative and labor costs as well as preventing loss, theft and counterfeiting.

But implementing RFID remains a formidable challenge for many companies. Some say the technology remains untested and is too expensive. Indeed, RFID can be complex, necessitating its own hardware and software. What's more, the Electronic Product Code (EPC) network—which both Wal-Mart and the DoD plan to use—has yet to be completed. In short, for many firms, deploying RFID is like venturing into unknown territory. Here's a four-phase plan that will make the ride smoother:

1) Lay the groundwork. First, set up a test lab where you can conduct controlled testing. During this initial phase, take the time to evaluate your integration and vendor partners. Keep in mind that you need companies that can effectively guide your pilot team. These external partners should be members of EPCglobal, the not-for-profit standards organization spearheading the development of the EPC network. Additionally, it's important that your RFID partners are experienced in providing auto-ID solutions specifically geared for the supply chain. As part of your pilot program, you should also start making and testing smart labels, paying close attention to read ranges, read speeds and data capture. Take note of the distance from which the labels can be read, the effect of products on RF signals, if any, and where you should place the label on the carton. All this testing will help you boost system accuracy and efficiency.

2) Investigate and validate. Enlist an experienced systems integrator, who can grasp your operations, processes and systems. As you are considering partners, be sure to select equipment that will work well with leading applications. Then start integrating RFID into your existing software applications, such as ERP (enterprise resource planning) and WMS (warehouse management system). This will allow you to get an early look at the benefits that the technology can deliver to your enterprise and the supply chain. Next, verify your vendor selection by assessing equipment performance. For example, make sure that the encoding solutions they offer are comprehensive and they can accommodate pilot runs of 10,000-50,000 smart labels. All your vendors should provide strong support services and upgradeable firmware. Finally, ascertain the best position for labels on different product offerings and how to affix them as volumes rise.

3) Start your smart label pilot program. Set up a system that's predictable and scalable. You can accomplish this by building expertise in placement, output and performance. Assess how your system is shaping up by establishing targets and keeping track of when you meet them. Also, during this phase, install equipment in other facilities or divisions to detect and correct any irregularities. Check your ability to capture and transfer data between locations. Additionally, simulate the real-life conditions and demands of a facility to test the systems. Ramp up volumes to about 50,000 or more, and using performance metrics, evaluate the feasibility of a larger scale deployment. By the end of this phase, you should have established business processes, validated software and hardware, and tested system accuracy at greater volumes and speeds.

4) Implement. Look for new ways to increase efficiencies, and incorporate metrics into your processes so you can measure improvements. Remember that the solutions you choose for pilot runs should be able to accommodate increasing demands. Also, be sure you're gathering data for enterprise management. This will allow you to gain a high level of visibility into your operation. Additionally, establish network and device management through the use of smart printers. By obtaining information in real time and controlling your devices, you can boost efficiency and productivity. Finally, set up smart media management, which will enable your application to self-monitor and keep you informed about any anomalies.

Source:

Smart Start to RFID
Printronix
Packaging Digest, September 2004
www.packagingdigest.com/articles/200409/56.php