Issue #206 | Sept. 17, 2009 | by Byron Blackburn

Looking back over the last years, I have collected more experience managing the integration side of RFID/RTLS then I like to admit. I particularly hate thinking about the many horror stories I've seen when users try to get away on the cheap. If done right, RTLS can be a model of how well RFID in general can work.

Thought to be based in magic by many, RTLS is looked upon as the savior of logistics problems. Reality is, RFID and RTLS are tools that track people, items, and let’s just say stuff. Really RFID/RTLS is the key tool that offers real time visibility. That is about it.

It is the software and processes that make the magic happen. Integration is the part that returns the greatest ROI.

RTLS and RFID deployments are only truly useful with integration

The integration layer is the key that many customers and vendors alike miss or avoid. Most Vendors really don’t like to bring this point up and customers don’t really want to hear it because of the perceived cost and time commitment associated with integrations. (OK, yes, integration cost money and time. I admit that!)

Good news is, most RFID/RTLS solution vendors have a software package that does display the data showing location and movement. Some packages have maps, either line layouts of the covered area, CAD drawings or aerial photos of the entire facility (a big plus in large lots) that show this data as dots. These systems operate well standalone and help you locate items quickly, efficiently saving time and manpower. Many stop there and get by with this level of service.

If you choose to only go this far, make sure the software is open source code or that the database structure is directly accessible by your systems. SQL database is nice as it can be accessed by Excel, Power Point, Access, and other systems for quick and easy data manipulation.

Just using RTLS stand-alone to save cost also reduces the benefit. Adding this valuable data to end-user systems would require manual input of the data or movements into current systems or. Some vendors have more sophisticated software packages offering a layer of integration which allows you to connect to, or pass data back to, your ERP or other system. Again, buyer beware; some of these so called integration layers are nothing more than passing out a flat file that still needs vast amounts of integration to get it where it belongs.

Real Integration brings in a software piece to manage the data in RTLS systems and mate it to the correct system, or process, to make the data useful. Magic is as magic does. To be really useful it should work seamlessly and appear that it is not even there, giving your current or upgraded business tools new life and ROI.

Trust me on this, the money spent upfront on integration will be returned many times over. In a properly designed system data flows seamlessly in real-time without user input, allowing up to the minute business decisions. This real-time data can sequence production and processes allowing for any delays as they occur. Shipping, receiving, production, disasters, weather, or any of a thousand reasons that can disrupt work flow can be addressed, recalculated, and flow can be corrected in real time.

These accurate calculations reduce man hours, reduce paperwork, stop over production, reduce inventory, ease HR scheduling, lower work in process (WIP), and much more, saving thousands of dollars more than the cost of integration.

Spending money properly is the key to cost containment:

• Pick your vendor, or two
• Work closely with the vendor and get a good understanding of their software offering and integration capabilities.
• Get early input from you network and IT team and make sure you know what talks to what and how it does it.
• Nail you process down tight and know what data you need from it to populate you current or planned systems.
• Don’t get cheap on me here—quality costs money.

Do not be afraid of getting an outside third party to watch over the big picture and keep everything on track. The cost is minimal compared to the return and success of the project. We find projects are completed in 30% less time than if the customer and vendor are left on their own. An impartial third party keeps finger pointing out of the project and keeps it moving.

So if you have taken my advice and went and located something, now go and integrate it.


Byron W. Blackburn is the principal at Blackburn Global and specializes in vendor relationship management and helps clients strategize and manage their implementations. www.BlackburnGlobal.com