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Jumping
on the bandwagon could result in supply chain continuity problems.
Driven by retail market leaders like Wal-Mart
and public-sector models such as the US Department of Defense, many
IT organisations are scrambling for budget and guidance to attain
working RFID (radio frequency identification) solutions without
understanding the technology's actual capabilities and limitations,
warns META Group, Inc.
META Group believes that RFID will enable an
organisation to improve its sensing capabilities, but decision makers
should not be enticed by the ‘low-cost tag’ hype, since
RFID is not a one-size-fits-all approach with unlimited technical
abilities. Even though the technology has proven effective in livestock
tracking, toll collection, and premium product manufacturing, META
Group encourages organisations to keep initial RFID projects at
the case/pallet level, acting as bar-code replacements, before moving
to more complicated supply chain implementations.
"Many IT organisations do not immediately
realize that even smaller RFID projects can significantly affect
an entire IT infrastructure and application portfolio, so a readiness
assessment must be performed early on," said Gene Alvarez,
vice president with META Group's Technology Research Services. "Starting
with small projects will assist enterprises in climbing the 'RFID
learning curve' and establishing standards that support efficient
future product movement."
META Group further encourages IT organisations
to create a task force responsible for gaining an understanding
of RFID's capabilities and limitations. This group should interweave
RFID technology with existing IT infrastructure and application
portfolios as part of an overall adaptive organisation strategy.

•Date:
17th February 2004 •Region: World •Type:
Article •Topic:
Transport & logistics
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