Suppliers considering using radio frequency identification tags are being sidetracked by hardware issues such as the cost of tags and infrastructure say experts from BT’s Auto-ID Services division.
BT’s Auto-ID Services is understood to be one of the companies currently developing middleware RFID solutions for Tesco, as it prepares to roll out RFID later this year.
Tags currently cost over 20p each, and tag readers cost thousands of pounds. However, as the technology advances, those costs will go down said BT Auto-ID Services CEO Ross Hall.
The debate on implementing RFID should be about how the data is managed and the potential cost benefits, not the set-up costs, he said.
Businesses should start by analysing the potential impact of RFID in terms of supply chain visibility, increased collaboration and automation of processes along the supply line he said.