Another factor that may need to be considered in the cost of introduction of RFID tags: how easy is it to cheat the system, and therefore continue losses in spite of the investment? RFID tags are not as invisible as one might like. I'm sure some clever people will find ways to beat them, and the value of investing in the RFID system goes down as their success rate goes up.
It does seem like a big, beta v. vhs-type bet, insofar as if people do figure out how to end-run RFID, then you've spent $25 million on something that doesn't work. If the Frost prediction is right, then enough Asian companies are confident enough in the tech to believe it's worth the investment. People are wrong all the time, of course. Thanks for your comment.
I admit that RFID deployement faces cost hurdle but it makes our lives easier, Imagine going to a grocery store or any electronic store during thanksgiving time, Instead of waiting in the line for an hours, filling up your cart and walking out the door, wow....It saves lot of time. It costs so much money to setup the system but for big organizations i don't think its a big deal.
I'm sure that system developers have spent a significant amount of due dilligence in trying to make the systems foolproof, and it is bound be be an improvement over current methods. RFID has been in development and testing for a long time.
For the electronics supply chain, it certainly make sense to tag items at the source--and cost is the main reason the technology is going to remain in limbo. For high-priced components, suppliers would tag them at the individual component level; others could be tagged at the lot or even pallet level. But even at pennies per tag, the cost is overwhelming for component-level suppliers. It would even add up at the subassembly level. It's too bad: not only would RFID avoid theft, it could help authenticate parts and prevent counterfeiting.
Yeah. It doesn't seem likely to pencil out. So then the mystery is: why is Frost, which is the sort of place rigorous enough to ask, and get, $10,000 a copy for some of its research reports, predicting use, and sales of RFID systems, to rise in Asia this year, including the electronics sector? It's making sense for someone. Just not anyone I can find speaking publically about it.
I am not sure if I understoood correctly can deploing RFID cost 25 million dollars?? Is it so expensive. One of my friend and former colleague started his own company that focusses on developing RFID products. Well I need to do some cost check...
I think RFID is a very valid and useful tool with multiple uses. Most analysts and companies agree with the effectiveness of this great tool. The only downfall everybody faces the large cost.
This is a much needed technology that would help the entire industry by not only helping to slow down the black market sales, but also allowing companies to get a better control of theft. With the ever expanding market in Asia in not only production but purchasing, there will be some manufacturers willing to take the cost on to help the company overall.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.