ICT and e-Business in the Pulp, Paper and Paper ... - empirica

Pulp, paper and paper products
As regards the frequency bands used to transmit data from tags, EPCglobal, the GS1
subsidiary and driver of standards for the use of RFID in the supply chain, is currently
testing which bands are best suited for using RFID to identify and track individual items.
High-frequency (HF) 13.56 MHz tags and ultrahigh-frequency (UHF) 915 MHz tags can
be used. The former have a shorter read range, but tend to perform better on items that
can cause interference. 89
Advantages over barcode technology
From a functional perspective, RFID has several advantages over the older barcode
technology. The main advantages which are relevant for the P&P industry are:
RFID tags can store more information than a barcode. This increases
considerably opportunities and options for their use (while at the same time
carrying the risk of creating an overflow of less relevant data).
Transmitting information from an RFID tag does not require line-of-sight with the
reader. Thus, manual processes (e.g. hand scanning of barcode labels) can be
partly of fully automated, as RFID readers can read information even from tags that
are hidden or embedded in items.
RFID systems allow for simultaneous identification. Systems are capable of
processing about 400 signals per second, including the identification of several
tags at the same time. 90 Thus, information from several pallets or other units can
be transmitted simultaneously, while scanning barcodes can only be done in a
sequential mode.
However, while these functional advantages are certainly an attractive proposition for the
future, RFID technology is still rather expensive when compared to barcode equivalents,
mainly due to the implementation cost of the overall system (see Section 4.3.4).
4.3.2 Adoption of RFID: commercial break-through among large firms
e-Business W@tch asked companies questions about RFID in the e-Business Surveys of
2005 and 2006. Results demonstrate the gap between expectations that a technology will
be important and the actual usage of it. In 2005, companies representing about 40% of
employment in the food and beverages and the automotive industries, and about 30% in
the textile industry said they expected that RFID would be important for them in the
future. In the pharmaceutical industry and in machinery and equipment, about 25% of
firms regarded RFID as relevant. 91
Based on this finding, a new question was introduced in 2006, asking companies whether
they actually use RFID, with a follow-up question for users about the purposes for which
they use this technology. The result may come as a surprise, considering the great
expectations of firms and the enormous attention which RFID enjoys as an issue in the
89
90
91
"EPCglobal Developing HF Tag Standard", by Mary Catherine O'Connor, published at
www.rfidjournal.com, 8 May 2006.
See e-commerce magazine, 02/2005, p. 48.
See respective e-Business W@tch sector studies of 2005, available at www.ebusinesswatch.org
('resources'). The P&P industry was not covered in the survey of 2005.
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