WMS and RFID

WMS and RFID

Although Radio Frequency Identification (RFID) has been around for almost 15 years, it is only recently that the world has woken up to its immense potential. One of the obvious applications of this technology lies in tracking inventory with RFID-enabled tags. (Wal-Mart has already directed its suppliers to gear up and supply goods with RFID tags.) The US retail supply chain, which is today spending around $200 million on RFID, is expected to spend around $1,300 million by 2008.

RFID can be used to turn a WMS into a real-time system. This new possibility has invigorated the WMS market. RFID-enabled WMS will not only reduce operational costs but will also increase warehouse productivity by optimising storage and resource utilisation. RFID-enabled WMS can help implement collaborative sourcing strategies through the real-time flow of information to and from suppliers.

The challenges of incorporating RFID

Of course, RFID technology can create new challenges, and there are a number of technical difficulties that need to be tackled before the dream becomes reality. WMS has to be integrated into RFID readers; for greater efficiency, they will have to read RFID tags in bursts rather than sequentially. Also, the volume of data is going to be enormous, which is going to stretch the limits of a WMS. Making business sense out of the enormous volume of data is also a big challenge which has to be overcome. Error Proofing is another technical hurdle that needs to be surmounted. Accidental and inadvertent reading of adjacent RFID tags can result in incorrect data. Different materials like metals and liquids interfere with reads. It is believed that excessive exposure to radio frequency (RF) can lead to certain ailments. Even though this has not been proved scientifically, there have been cases where workers have resisted RFID implementations. The effect of RF on food and drugs still needs to be explored.

Standardisation has to be brought to the RFID reader and printer market. Without this, making a WMS capable enough of interfacing with all possible readers and printers is going to be a near-impossible task. Unless such standardisation is brought in quickly, it may even kill this promising market.