RFID Gazette

The U.S. Government Accountability Office published a report on Friday stating that 13 federal agencies are already using RFID or are planning on deploying it. Of the 23 agencies interviewed, only one identified any privacy or legal threat that could come as a result of using the technology. A lot of the time, government agencies plan on using RFID to track warehouse pallets, but it is when the chips are embedded in ID cards or otherwise linked to personal information that the issues of privacy could become serious, the GAO warns. According to ZDNet UK:

Agencies already are experimenting with passive RFID technology. Among the list of planned or actual uses: the Department of Defense for tracking shipments; the Department of Homeland Security for immigration and baggage tracking; the State Department for electronic passports; the Department of Veterans Affairs for "audible prescription reading."

Read more: US government ignoring RFID risks

Chris Murphy at Information Week has written a piece that details some of the real-world ROI results that companies such as Gillette, Wal-Mart, Levi Strauss, and Michelin have experienced so far. Levi Strauss, for instance, has equipped a store in Mexico City so that every item is RFID-tagged. This allows for the store to take full inventory each morning in just 30 minutes. Levi Strauss hopes that this will reduce out-of-stock items and thereby improve customer satisfaction. On a different front, Gillette has noticed that during a recent ad promotion campaign, 38% of the measured stores did not execute correctly. On the other hand, according to RFID-EPC data, the stores that did execute correctly realized a 48% increase in average dollars per point of sale. According to Information Week:

Gillette has been among the leaders in RFID, and over the past two years it has built a business plan in which it estimates 80% to 90% of the benefits will come from collaboration with retailers. Put another way, 20% or less of the benefits will come from operational improvements it can make on its own, within its walls. "Our approach has been to launch and learn," Dubash said.

Read more: Real-World RFID: Wal-Mart, Gillette, And Others Share What They're Learning

Wired News reporter Kim Zetter appeared on NPR's Talk of the Nation yesterday to speak about the application of RFID in passports, swipeless credit cards, and Wal-Mart's inventory. Zetter believes that it will most likely be the responsibility of the credit card companies to purchase the readers for the merchants when the technology is first beginning to lift off. She also discusses privacy implications and other potential pitfalls of the technology for consumers. Listen to the audio of this interview: NPR: Credit Cards That Don't Swipe

Last week, Hong Kong's Institute of Industrial Engineers (IIE-HK) together with the Hong Kong Productivity Council (HKPC) launched an RFID program to make local engineers more competitive. The program focuses on applying RFID technology to supply chain management, especially within the manufacturing and industrial sectors in the Pearl River Delta region. The program will begin to take shape in the coming months and will be composed of seminars and technical training workshops. Edmund Sung, the director of the CEPA Business Development Center of the HKPC, speaks highly of the potential of RFID technology. According to CRM News:

"It can be deployed across the supply chain, from materials sourcing, manufacturing, storage, picking and packaging, through to logistics, cross-border transportation and shipment, and all the way to inventory control and retailing," said Sung.

Read more: Hong Kong Promoting RFID Technology

Global supply chain payment leader VeriSign has acquired RFID consulting firm R4 Global Solutions for $15 million. This merger comes on the heels of the one between the Uniform Council Code's UCCnet and Tesora. And a month ago, GlobalNetXchange LLC and WorldWide Retail Exchange announced plans to merge. According to Information Week:

These combos should help strengthen the pairing of data synchronization and RFID as methods to access and share supply-chain data, primarily in the retail and consumer-goods industries. "The trend toward collaboration has been going on for five years, and we're beginning to see the crossover of RFID and data synchronization," says Jeff Richards, R4's former president and CEO, who's now director of directory services at VeriSign.

Read more: VeriSign Buys R4 Global For $15 Million

A research firm known as Research and Markets has just published their latest "RFID Market Strategy Report." The report, based on a survey of 526 radio frequency identification companies worldwide, argues that automotive companies, most of whom practice the just-in-time inventory strategy, would benefit using RFID. The report also has other findings: While predictions regarding RFID growth rates widely vary, most analysts agree about the opportunities that RFID holds. Also, the report warns that RFID deployment is not a good solution for all businesses' supply chain and inventory management needs. According to iTWeb:

Research and Markets claims that the worldwide RFID market was valued at $1.49 billion in 2004, including sectors such as RFID readers, active tags, passive tags, ICs, software and services.

In terms of an update on RFID industry trends for this year, the report notes that rapid growth rates predicted for RFID, based on the Wal-Mart compliance deadline of January 2005, did not materialise.

Read more: Auto industry needs RFID

The U.S. Department of Defense has awarded two new RFID vendor contracts during this past week, giving "approved" status to Alien Technologiesand ADT Security Systems. The ADT products approved are the Sensormatic Agile 2 readers, Sensormatic Omnipoint antennas, and GlobeRanger's iMotion RFID software. The DoD also approved Alien's ALR-9770 series multiprotocol readers. This new wave of product approvals by the DoD will allow their buyers a wider array of options to assist in the government's RFID asset tracking and supply chain efforts. According to Information Week:

The awards are part of a government project to build an integrated supply chain that consistently identifies, tracks, locates, and monitors Department of Defense assets and commodities, using passive RFID EPC Class 1 technology.

The RFID EPC-1 technology will be used at inventory warehouses and maintenance, repair, and tracking facilities; at entry and exit points of military facilities; and at roadside installations. It also will be used to handle and track hazardous explosives.

Read more: Department Of Defense RFID Contracts Accelerate

The United States Department of Homeland Security will be testing radio frequency ID along the nation's borders this summer in an attempt to better monitor the comings and goings of foreign visitors. The technology will be deployed in airports, maritime ports, and land borders. At land borders in Arizona, Washington, and New York, officials will begin distributing I-94 arrival-departure form receipts embedded with RFID tags. The tags would be scanned upon a visitor's departure from the United States to ensure that he is in compliance with his visa. According to Information Week:

But the spokeswoman cautions that because the initial rollout will be a test, it's possible Homeland Security eventually will settle on a different use of RFID should the I-94 receipt prove ineffective. As a result, people shouldn't worry about the program resulting in unwarranted detention of departing visitors.

Read more: RFID Steps Closer To Protecting Borders

Axcess International's active radio frequency identification system is being used by Betchel Hanford's Environmental Restoration project to track waste from cleanup sites along the Columbia River in Washington. A critical component in waste management is being able to identify exactly what the waste is and record where it is being disposed. Active RFID tags on each truck will ensure that the weight and identity of the waste is automatically logged into an integrated database without the driver having to leave his truck and manually input this data, thereby improving accuracy and efficiency. According to internetnews.com:

Allan Griebenow, president and CEO of Axcess, said the project is another step forward for multiple tag technology.

The Axcess system uses small, battery-powered RFID tags to transmit wireless messages to small receivers with a typical range of 30 to 100 feet. The receivers are connected to existing security alarm systems or networked on a corporate network.

Read more: RFID Tags Work For Waste

Cisco Systems has come under harsh criticism lately as it prepares to install the AirSpace Wireless Location Appliance 2700, which will use radio frequency identification tags to track assets and people. Employees will have RFID tags embedded in their personnel uniforms. Alarms will go off if they cross into restricted areas. It will also allow employers to track movement and behavior of their workers while on the job, which could lead to improved productivity. The system will only work with active RFID tags, which will cost around $5 each. The server will be available in June at 8,000 GBP. According to vnunet.com:

However, the technology was slammed by privacy group Liberty. "This latest product undermines employee privacy even further and reinforces the slur that workers cannot be trusted," said Dr Caoilfhionn Gallagher, policy officer at Liberty.

Read more: Cisco slammed for RFID staff tracker