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FOCUS — March 22, 2006
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RFID


Positive Signs at RFID World
At the RFID World Conference and Exposition last month in Dallas there were ample signs that RFID technology is taking root.
Attendance at this year's show was 3,500, 20 percent higher than 2005. At 200, the number of exhibitors was up 50 percent, with "more than 150 already re-signed for next year," according to Tim Downs, president of the conference's organizer Shorecliff Communications (recently acquired by CMP Media).
Attendees were not only more numerous, they were also better educated. "Whereas last year end-users were coming to learn, this year they're coming with projects in mind and looking for total solutions," observed Joe Sandoval, director of U.S. distribution sales for Printronix. Added Justin Hotard, director of product management-RFID for Symbol Technologies, "People are coming with larger deployments, and have a better sense of what they can and can't do."
Another difference: last year, the vast majority of end-user attendees were seeking to comply with mandates. This year, by contrast, exhibitors estimated that over half the attendees were proactively investigating ways in which RFID technology could improve enterprise productivity. This year's group was more focused on asset tracking than Wal-Mart compliance, and more interested in "within-the-four-walls" operational improvements than the supply chain.
http://www.rfidupdate.com/

User Panel Already Sees Payoff
The use of RFID tag systems in manufacturing is now providing a payoff to companies -- despite early concerns about privacy issues and technological hiccups as the wireless technology has been rolled out.
That was the message from a user panel at the RFID World conference last month in Dallas that looked at the myths associated with RFID implementations. While still not fully mature, RFID is rapidly becoming a stable, proven technology that has quantifiable return on investment and can deliver unique visibility into the supply chain, users said. But that added visibility comes at a price.
“In reality, it costs money,” said Jim McMasters, senior vice president of IS at Tandy Brands Accessories Inc. Additionally, he said, there must be a plan in place to exploit all of the data provided by the tags..
James Jackson, director of vendor relationship management at clothing manufacturer VF Corp., highlighted the value of RFID in making sure that promotional stock gets out of the back room of a store and onto the shelf in a timely manner. VF plans to launch an RFID initiative that will allow it to track merchandise at the item level, said Jackson.
All four of the panel members noted privacy concerns around RFID but said these concerns are largely unfounded.
http://www.computerworld.com/

Shortage of RFID Skill Sets
According to a new survey by the Computing Technology Industry Association (CompTIA), the deployment of RFID technology continues to be hampered by a shortage of individuals skilled in the technology. Seventy-five percent of the technology companies participating in the CompTIA survey said they do not believe there is a sufficient “pool of talent” in RFID technology from which to hire. That figure is down slightly from a similar survey conducted in 2005, when 80 percent of respondents said there was a shortage of RFID talent.
Among companies that believe there is a talent shortage, 80 percent said the lack of individuals skilled in RFID will impact adoption of the technology. The figure is significantly higher than a year ago, when 53 percent of responding companies said the shortage of talent would have a negative impact on RFID adoption.
“RFID is a complex and still evolving technology, and expertise is absolutely required for its usage to be a success,” said David Sommer, vice president, electronic commerce, CompTIA. “The skill sets and “need-to-knows” related to RFID are many and varied. Clearly there is work to be done in our industry in terms of RFID education, training and professional certification.”
http://www.fibre2fashion.com/

RFID Seen as Catalyst for Collaboration
A report titled "RFID Comes of Age," written by The Economist Magazine's Intelligence Unit, concludes that RFID technology may well become a catalyst for much deeper collaboration between companies and lead to the formation of “supplier networks” that could replace today's linear supply chains.
The report was sponsored by North of England Inward Investment Agency (NEIIA), the organization responsible for promoting direct business investment from North America. North England is a leading technology cluster and is attracting investments from both RFID providers and end users, including companies like Sun Microsystems and Wal-Mart.
The report explores what some of the problems will be for companies looking to exploit RFID technology for commercial advantage. Additionally, the paper looks at where RFID is likely to have the greatest impact over the next few years, and the broader challenges confronting the burgeoning RFID industry.
In addition to being a catalyst for much greater collaboration between companies, the report says RFID also will play an important role in product safety and healthcare. It also suggests that legislatures regulating the use of RFID tags should require them to be de-activated at point-of-sale to remove privacy concerns rather than require the permanent “killing” of stored data. This way users could have the opportunity to opt-in to post-sales uses that benefit them as well as the businesses using the technology.
http://www.northofengland.com

Israeli Military Adopts RFID
The Israeli military will be the second outside the U.S. to adopt RFID technology to manage its supplies. RFID technology will allow the army to manage storage facilities, implement ongoing monitoring of fuel stocks and track equipment transferred from storage facilities to the field. The army said it is also deploying the technology to cut logistics costs and ensure that equipment and supplies aren't "disappearing."
A request for suppliers is expected to be issued by May. Gradual introduction of RFID tags will initially seek to halt the siphoning of fuel by soldiers. The next stage will be to monitor fuel storage facilities. The technology will eventually be introduced in central storage facilities where the wireless tags will be integrated with equipment in the field.
http://www.eet.com/news/

DHL Expands RFID Projects, Adds Partners
Logistics provider DHL, Plantation, Fla., is expanding its RFID efforts in cooperation with partners IBM Corp., Intel Corp., Royal Philips Electronics N.V. and SAP AG. An initial project will integrate RFID technology into the supply chain to improve repairs and returns. DHL wants to track valuable items, such as high-definition television sets bound for repair shops.
By affixing RFID tags on repair shipments, readers positioned at points along the transport route can monitor packages as they move through the supply chain in containers and pallets, specifically as they are loaded and unloaded on aircraft. The RFID tags also could monitor packages as they're picked-up and delivered to customers, keeping a record of service.
The partners will develop specific "proof of concepts" to validate that the tools being tested will solve the problem addressed. If successful, DHL may replicate the model for use in other business processes.
DHL expects the RFID project will "dramatically" improve shipment visibility, and reduce inbound and outbound scanning processes by 90 percent, saving valuable time when transporting shipments.
This project is the first example of the “DHL Innovation Initiative” led by parent Deutsche Post World Net, the company said.
http://www.informationweek.com/

EU Airs Privacy Concerns
Announcing a public inquiry to identify citizens' concerns about RFID, the European Commission said legislation may be required to regulate the widespread use of RFID tags.
To address concerns about personal privacy and security issues, the Commission will hold a series of workshops in Brussels through June to canvas public opinion on the subject. The results of the workshops will be incorporated into a consultation document due to be published in September.
Protection of personal information in electronic form is already the subject of a European law, the e-Privacy Directive. If the Commission identifies new threats to European Union citizens' privacy from RFID and determines that new legislation is required to protect them, then it will consider revising that directive, it said.
RFID is also a European issue for other reasons. Laws allowing for the free movement of goods around the EU would be worthless if tags on packaged foods from Poland, say, were unreadable by scanners in Portugal, as supermarkets would not be able to track their inventory. The Commission is also considering legislation on technology standards and radio spectrum allocation to ensure the harmonization of tag technology across the EU.
http://www.networkworld.com/

RTLS Market Set to Explode
In a new report, "Real Time Locating Systems 2006-2016, research firm IDTechEx, Cambridge, Mass., predicts that the RTLS market will explode over the next ten years, growing from an "esoteric niche market" to one worth $2.71 billion in 2016.
Unlike the passive RFID market, for whom ongoing tag sales will be a key contributor, the RTLS market will see more diversification in its revenue sources. IDTechEx pegs it as a "systems" business rather than a commodity business.
IDTechEx predicts the 2016 RTLS market will breakdown as follows: $406.5 million (15 percent) on hardware, $677.5 (25 percent) million on tags, $813 million (30 percent) on software, and $813 million (30 percent) on services. RTLS will contribute to 40 percent of the total active RFID market by 2016. A few household names are eyeing the RTLS space, including Mitsubishi, Cisco, IBM, Microsoft, and Motorola.
http://www.rfidupdate.com/


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