All bar none
August 1st 2007

Mark Beauchamp, European marketing manager for Citizen Systems Europe, says the most effective stock management solution for many materials handling firms is a combination of bar code and RFID technologies

Radio Frequency Identification (RFID) has for some time now been presented as the successor to the bar code in the materials handling and storage sector, able to offer a more sophisticated method of logistics management. This has led to considerable interest in the technology, as companies attempt to streamline processes and reduce costs. However, this level of interest has not been matched by the number of businesses implementing the technology, for a number of reasons, including the conflicting nature of much of the information on RFID, a lack of examples of the technology being proven in real life applications, and the high start up costs.

While these problems hinder the succession of RFID, for many materials handling companies the bar code system continues to offer an effective method of stock control, tracking and management.

Indeed, bar code systems can often offer even greater performance and functionality than RFID equivalents, with a traditional 1D bar code able to contain as much information as an EPC RFID tag, and the latest 2D bar codes able to hold considerably more information than the proposed next generation of EPC tags.

Bar code technology also has the benefit of being familiar with staff, contributing to the fact that bar code scanners provide a failure rate that is almost zero, while the failure rate for reading RFID tags is considerably higher, typically quoted as being between 5% and 12%. As bar code technology is now established around much of the globe, it is relatively simple for multi-national organisations to standardise procedures using consistent bar code formats and equipment. Furthermore, the hardware and software required for bar code solutions is widely available and competitively priced, with a large number of suppliers available to provide end users with invaluable advice and support.

By contrast, the relatively low demand for RFID related products and systems means that the technology is considerable more expensive, with the cost of hardware typically being at least four times that of bar code equipment. Taking into account the total cost of purchasing and implementing an RFID network, it has been estimated that the cost of applying each tag is up to eight times higher than that required for a bar code label containing the same level of information.

RFID definitely has much to offer companies in the material handling sector but these issues are making a complete overhaul of stock management processes difficult to justify. A far more suitable approach, in many cases, is to introduce the new technology alongside proven and relatively inexpensive bar code solutions.

This can have the effect of not only safeguarding a business from the potential problems of implementing new technology exclusively, but it can also prove to be a more suitable and user friendly way of upgrading systems. Technically, there is nothing stopping both bar code systems, which can be installed or upgraded at low cost and without the need for extensive training and management control, and elements of RFID technology being used together as a cost effective and reliable solution.

A further benefit of this combined approach is the reduction in the short to medium term environmental impact; RFID tags are difficult to recycle, comprising a metal and silicon tag, with considerable development still needed to find a more sustainable solution. Until this is achieved, the printed bar code is offering a simple way for companies to comply with waste management regulations and minimise their disposal costs.

Essentially, RFID still has a long way to go before it becomes a justifiable stock management option in isolation, with a number of problems associated with the system needing to be addressed. In the meantime, a combination of bar code systems with integrated RFID elements can often be the most workable and cost effective solution, enabling system upgrades to be achieved simply, quickly and reliably. Despite the rhetoric surrounding RFID it seems bar code technology looks set to offer tangible benefits to the materials handling and storage sector for some time to come.

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