RFID in ForbesRFID The Right Way
Robert Malone, 10.13.05, 12:00 PM ET
NEW YORK - For companies, adopting RFID is a major expense. But if they don't take action, it could affect their business.
What would happen, though, if companies could just test the water instead of jumping headfirst into adopting RFID--an alternative to bar codes--which uses radio frequency identification devices to track products?
Enter Manhattan Associates' (nasdaq: MANH - news - people ) RFID in a Box. It provides all of the components and services that are needed to roll out an enterprise-wide RFID initiative (or a more limited version). This deployment can include being EPC compliant and can fulfill an enterprise's need for tags, readers, printers, middleware, software, service and training.
Forbes.com recently spoke with Greg Gilbert, Manhattan Associates' director of RFID solutions & strategy, about RFID.
Forbes.com: Manhattan Associates had a primary role in getting Wal-Mart Stores (nyse: WMT - news - people ) suppliers compliant with the RFID mandate. What core concepts or processes contributed to this acceptance and use?
Gilbert: Manhattan Associates led the supply chain industry with its retail compliance initiative from the earliest days. RFID was a logical extension of that, and our experience in other compliance initiatives was key. We were also very early proponents of RFID, being the first supply chain solutions provider to join the original Auto-ID center (now EPC global), long before Wal-Mart announced any mandates. We have a large, installed client base. We talked with many of our key customers to understand their points of view on the new technology. The combination of all of these factors created a real advantage for us.
You have found that many customers don't want to run their own RFID operation; therefore, you are able to provide for them. What levels of provision do you offer these customers?
It's not so much they don't want to run the operation. It's that they didn't want to have to deal with the potential compatibility and integration issues that existed before our RFID in a Box offering. We solved that issue and augmented it with a services team that was able to handle everything from the challenges with physics to the details of integration into our clients' existing applications. We are able to allow the clients to take on as much of the project burden as they would like.
RFID in a Box seems like a good solution for those who see that alone they may be taking on a tiger. How do you serve those who want to do as much as possible to run the RFID system themselves?
By employing a train-the-trainer approach. We believe that the more our clients begin to learn about RFID and the supporting systems, the better prepared they will be to take advantage of the benefits on the horizon.
To what extent is the integration of hardware and software a prime part of your RFID solution?
It was the first key component that we based our products on. We felt that integration had to be seamless for the user. It is the foundation, if you will. Now that we have successfully met the challenge, we spend a lot more time dealing with the process details of how our users can most efficiently work with the system, and how to best use the data provided by the system.
Do you think that RFID will become a de facto standard?
For many applications, yes. Will it ever replace bar codes? Maybe not, as there may always be a need for alternate AIDC technologies.
Are there particular industries or types of products that fit the use of RFID more than others?
From an industry standpoint, those that have higher-value items stand the most to gain, such as those companies that are in electronics and high tech, pharmaceuticals and even digital media. These products also have a short selling life, since customers always want the latest and greatest version. That means keeping a high in-stock ration with less inventory in the supply chain. RFID is a great way to provide the visibility needed to solve that problem.
Will RFID technology extend out into other walks of life, such as in the retail store itself and in the home?
Whether or not the technology ever makes it into our homes is a difficult question to answer. There are potential privacy issues, and issues of how to control the access to the information that could be gathered with RFID in the house.