Industry watchers feel that it may take up to fifteen years for RFID to gain mass acceptance. Researchers are not really in a position to comment on the lasting effects of the technology because no on in any industry has reached that stage as yet.
For industry to really warm up to the technology, tag prices have to come down and companies have to see an attractive ROI proposition. The government has an important role to play in RFID development by setting the standards for the technology, laying down guidelines, educating industry people, and managing privacy concerns when they arise.
The government can work in collaboration with the private sector to attain the above mentioned objectives. For RFID to become a mainstream technology, it requires able stewardship to ensure that it is properly tried and tested. The public sector can serve as the ideal test environment for this technology.
In December 2004, the Government-wide Policy for the General Services Administration (GSA) issued an RFID-related directive that recognized the potential of RFID in improving supply chain management. Federal agencies have been directed by the GSA to study the potential of RFID for automatic update and valuation of inventory, inventory management, assistance in the movement of goods for transshipment, tracking equipment to facilitate accurate calibration, timely maintenance, etc.
The Government Accountability Office was able to list 28 planned RFID projects across agencies at the cabinet level when it carried out a survey in May this year.
The Social Security Administration conducted its first RFID pilot in 2003. SSA has incorporated RFID with its warehouse management and can process almost all its orders within eight hours; there are no order backlogs; picking rates have increased threefold, from 500 lines to 1500 lines in a day; file rates for normal orders and urgent orders are 94% and 98%, respectively; optimization such as reduced minimum safety stock has led to a recovery of 60,000 square feet of space in the warehouse; SSA has registered savings in excess of $ 700,000 per annum.
In the public sector, examples of RFID implementations for tracking critical objects include RFID in libraries, RFID used for tracking court documents, and RFID for monitoring hazardous waste.
Libraries in Texas and Virginia have employed RFID-enabled tracking systems. By using RFID, libraries can ensure self-checkout, reduce material handling, facilitate location of products, enable the library staff to offer more value-added services, etc. However privacy concerns regarding the use of RFID in public domains such as libraries have held back the growth of RFID in libraries.
Legal firms find RFID an attractive proposition for the purpose of tracking files and evidence. The juvenile court in DeKalb County will be spending around $ 50,000 to tag files and folders and to provide readers to the clerks. The court expects to save around $ 30,000 by reducing the number of lost files. Marin County in California uses 13.56 MHz tags that are embedded in file labels. This system is helping the county save up to 2,500 man hours every year.
The Department of Energy (DOE) is supervising the cleaning of the Hanford Nuclear site in Washington State. The project is using an RFID system where active tags having a range of 100 feet at 315 MHz. The tags are placed on hazardous waste-filled steel cans that are loaded onto trucks to be taken to a landfill.
The collaborative efforts of vendors, retailers, government, and all those involved in RFID is resulting in a set of globally accepted standards for the technology. The standards for RFID touch upon four major areas; the Air interface protocol which deals with the manner in which tags and readers communicate, data content deals with the organization of data on the tags, conformance relates to the testing of the RFID tools so that they meet the standards, and applications deal with the uses of RFID.
The EPCGlobal UHF Gen 2 tags have a read rate of up to 1500 tags per second. EPCGlobal’s efforts along with ISO for instituting a single standard should further push the development of RFID. EPCGlobal changed its tag data standard in July 2005 so as to enable DOD suppliers to continue using the DODAAC and CAGE codes in their effort to meet the DOD mandates.