What is RFID?
Suzanne Loker, Ph.D., Professor, Cornell University
Paul Chandary, Paxar
What
is RFID?
Radio
Frequency Identification, or RFID, is an identification or tagging method
that is similar in function to a bar code on an
apparel product
or shipping carton. The tags can be read through packaging and
cartons without the line of sight necessary for reading barcodes. RFID
technology
has three components: microchip tags that carry the data, antennas
that send the data, and readers that interpret the data. Cartons
or products
using RFID technology carry a transponder made from a microchip
attached to an antenna like the one pictured here. It can be very small
but
read distance performance will depend on size. These tags can
be placed in
an apparel product without affecting its comfort or look, for example,
the tag might be in a seam or hem or in a paper carton label. The
RFID readers can be placed in the entry of a warehouse and, depending
upon
the size and frequency of the RFID used, it can be read up to 20
feet though most in use today read only about 2 to 10 feet.

How is RFID affecting the apparel and sewn products industry?
RFID labels are smart labels that can provide information for a number
of applications in the apparel supply chain. Their unique information
can be captured automatically once the labels are applied at product
inception, and the information is highly accurate and secure. Some
RFID can be modified at stages of the supply chain using the interaction
between the microchip and reader software. RFID is traceable or can
be tracked to provide a production and inventory control system, used
for “smart shelves” real time inventory, retail security system, and
even as an authentication to identify counterfeiting of brands.
What needs to happen before RFID use is widespread?
RFID is in its infancy and there are several roadblocks to its sweeping
implementation. First, there are many versions of RFID technology that
operate at different radio frequencies and require different software
and readers. One or several frequencies need to be agreed upon so that
there can be interoperability between retailers, manufacturers, and
distributors using only one set of technologies. In addition, the cost
of the technology needs to be reduced. Right now, it costs about 40
cents per chip as compared to 4 cents for a barcodes. The cost of RFID
readers and software also need to be considered.

Standardization is underway in the organization
of data into an Electronic Product Code (EPC), currently a voluntary standard.
The EPC, similar to the UPC for barcodes, includes a header and three sets
of data: manufacturer id, SKU, and item unique code, for a total of 96-bits
of information.
Privacy
has become an issue as the microchip will remain in the product for its
lifetime. Several consumer activist groups are
concerned that
the consumer’s privacy will be compromised as their activities with the
product could be followed by the technology. Industry has countered this
concern
by developing systems to automatically deactivate the microchips at
time of purchase.
When will RFID be implemented?
RFID will be implemented at the carton level first, as this is where the
greatest cost benefit lies and where it will be the easiest to implement.
Wal-Mart and Target have both announced that their 100 largest suppliers,
including some apparel suppliers, will be required to label their cartons
with RFID technology by January 2005. This requirement will no doubt
speed up the technology development and standardization that needs to
be in place for widespread adoption.
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