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RFID will save the world!
Issue #101 | May 11, 2007 | by Andy Kowl
Let’s face it; Disneyworld was an odd place for a business conference. I am just reporting what many told me at the 2007 edition of RFID Journal Live. For those of you not there: we were on the main grounds of Disney, by Magic Kingdom and Epcot; but Mickey and Goofy were not at our end of the property. (My room was by the Elevator Maze, apparently.)
Then again, the more you think about it, maybe Fantasy Land is the supremely appropriate place for this industry of optimists. I have met many hardworking people who develop RFID technology. Time after time, there is this sense of sheepish optimism among those who have been plugging away at making RFID take off, because they refuse to lose the faith. If you have ever clapped your hands to make Tinker Bell fly again, you understand. At times though, in industry klatches, there has been the feeling of one hand clapping.
In Orlando, the buzz was stronger than I have ever heard among this RFID industry. And there is ever only one thing that stirs a buzz like that – business, closing deals. The RFID providers are finding that the more successful implementations they do, the more business it generates. Overall these last few months have seen a blossoming of finished implementations, breakthrough products, lower prices, and solid footing for the future.
And why shouldn’t the RFID industry feel great? As we learned at Journal Live 2007, RFID is helping to save the world!
Environmental gains just beginning
Scoff, will you? Then just listen for a minute to Rollin Ford, Executive VP and CIO of Wal-Mart. He confirmed that the world’s largest retailer is adding at least 400 more stores in 2007 to their RFID-enable list; and they see nothing but continued expansion. He pointed out that out-of-stocks account for billions of dollars in lost sales, with inventory inaccuracies accounting for 41% of the total. RFID shows consistent success in reducing the out-of-stocks. In the Wal-Marts using RFID, Proctor & Gamble reports that "in-stock items lifted sales by 20%."
That is huge. Everyone knows how large and powerful a company Wal-Mart is, yada, yada. . . Comparing Wal-Mart to other retailers brings the scope into sharper focus. Certainly there are other giant chains like Target, Home Depot, Best Buy, Macy’s and even fading Sears. Last I checked a couple of years ago, Wal-Mart was larger than the next eight combined. I have heard the numbers 10% and 20% of America’s jobs are either working for, or selling to, this unique institution. (Perhaps yours.)
So when V.P. Ford gives the following insight, he is not over-reaching. "24 million shopping trips are made every day to Wal-Mart," he reported. "If only 100,000 trips are avoided due to less out of stocks, the greenhouse emission reductions can be measured in tons." I have covered stories where RFID reduces equipment and vehicle usage and replacement; reduced wasted truck trips by measurable margins; and managed hazardous waste. The eventual global environmental impact of RFID is quite real.
Reduced exposure to terrorism
This is no joke. You may already know of Homeland Security uses for RFID. We have covered how Savi and Unisys are leaders in global shipping security, and both use RFID as part of their port security and tracking solutions.
At the Journal show, Savi announced a new standard for container security, ISO 18185, based on their patents, and a "Quick Start" program to allow for faster adoption of this secure technology. Approved in mid-April, ISO 18185 standardizes active RFID e-seal technology. ISO described this as "non-reusable freight container seals" that alert shippers to "tampering or intrusion through container doors."
In other words, when a container is sealed at the front end of the container supply chain, which accounts for 90% of world trade, an intact seal on the receiving end means no bad guys broke in along the way. America’s millions of incoming, uninspected, containers spawned the SAFE Port Act of 2006, which this new standard is a byproduct of. RFID-enhanced port security is growing quickly, and this technology is one weapon in the anti-terror arsenal.
Mine safety
Two announcements timed for the Orlando conference indicate the continuing developments RFID is making in mining efficiency. As much as any industry looks for efficiency, the mining companies have the added driver of saving the lives of miners. Our friends at Ekahau announced adding another mining client to their roster, CVRD Inco Ltd., a major metals company and the world’s second largest producer of nickel.
"Ekahau’s proven RTLS is ideal for underground applications – whether tracking assets or ensuring worker safety," Antti Korhonen, Ekahau’s CEO stated. He pointed out that Inco initially is using their RFID solution for operational efficiency; but "it can be easily expanded for use in tracking the location of miners."
Competitor Wavetrend, a U.K. active RFID company, announced an alliance with Canadian mining supplier NL Technologies. They state, "Adoption of RFID technology in the mining industry has the capability to dramatically improve the safety of industry personnel and equipment while delivering a strong return on investment."
Walt Disney would feel right at home with the RFID innovators, this industry of optimists. He was all about dreaming the Big Idea and then finding a way to accomplish it. There are other areas of positive, truly global impact RFID will have on our shared future. It is that spirit that is starting to triumph in the RFID business.
Last edited by AndyKowl : 05-13-2007 at 01:03 AM.
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