Viewpoint on RFID: Bar coded benefits

Over the last 20 years, bar code technology has offered businesses in the converting sector an effective method of logging, tracking and recording products from production to dispatch. However, the emergence of RFID has raised doubts over the future of the bar code, being promoted as a more sophisticated stock management solution. The reality is that while RFID clearly has benefits to offer some businesses in the industry, for many others, bar code technology remains the more suitable option, combining cost effective implementation with a proven reliability record.

RFID has been heralded as the beginning of a new era in labelling but there has been widespread reluctance to invest in the new technology, largely due to the confusion surrounding it. Those companies that have been attracted to the technology have often found it difficult to obtain clear objective information on precisely what it can offer them or proven evidence of the system in action.

With such a barrage of press coverage surrounding RFID, the considerable functionality of bar code technology has often been disregarded. For instance, a traditional 1-D bar code contains as much information as an EPC RFID tag, while the latest 2-D bar codes can already hold considerably more information than the proposed next generation of EPC tags.

Perhaps the most often quoted benefit of RFID technology is the ability for the tags to be scanned at a distance, unlike bar codes, which require some kind of proximity reader. While this is useful in some applications, for many others it is irrelevant. What is often more important is the ability to achieve a minimal failure rate; bar code readers offer a virtually zero failure rate in comparison with RFID tags, which are typically quoted as having a read failure rate of between 5 per cent and 12 per cent. Additionally, as many as 30 per cent of RFID tags can require re-printing due to read errors.

Similarly, the complexity of RFID systems means that for them to be successfully rolled out, extensive management and training is typically required. By comparison, bar code technology is already familiar to everyone from high level executives to warehouse staff, allowing the technology to be implemented or upgraded quickly, simply and cost effectively.

Training is not the only contributing factor to the high cost of RFID; the necessary hardware is presently up to four times more expensive than that required for bar code solutions.

Additionally, the overall price of purchasing and implementing an RFID network is generally estimated to make the outlay for applying each tag up to eight times higher than that required for a bar code label containing the same level of information.

With environmental issues increasingly important to businesses across the converting sector, it is worth noting that a simple, printed bar code can be recycled easily, while an RFID tag, consisting of a complex chip and circuit, raises considerable problems and costs where disposal is concerned. The materials used for each solution also make bar codes considerably more resilient to sustained handling and suitable for use in applications where there are extremes or wide fluctuations of temperature and humidity.

Perhaps the most important consideration when weighing up the commercial implications of each solution is the price of the hardware and software required. The common availability of bar code equipment ensures that hardware and software costs are likely to remain competitive for the foreseeable future, while the large number of experienced suppliers has created a vast pool of expertise and qualified support. By comparison, the choice of RFID equipment and suppliers is currently limited, while the demand for products and systems has yet to reach the point where critical mass allows unit costs to be driven down to a level that is generally considered to be financially viable.

A survey carried out in February 2007 of 56 members of the Computing Technology Industry Association found that 70 per cent believed that the shortage of RFID experts will adversely affect the take-up of the technology.

With these factors in mind, it becomes clear why many businesses in the converting sector looking for a reliable, efficient and cost effective method of product tracking are continuing to invest in bar code technology. While RFID remains an unproven and expensive gamble, requiring significant investment in new technology, bar code systems can be implemented quickly and easily, with the latest scanners and industrial label printers making bar coding a more productive and user friendly option than ever before.