Choosing an RFID solution: here are some tips to help you select products and services to comply with the RFID mandates

Frontline Solutions, Feb, 2004 by Brian Albright

Ever since Wal-Mart first announced its plans to require its suppliers to use RFID in the supply chain, technology vendors large and small have flooded the marketplace with new products and services aimed at fast compliance with the latest mandate from the world's largest retailer. A similar directive from the Department of Defense (DoD) has increased demand for information and integration expertise.

The variety of solutions now coming to market is a mixed blessing for vendors who are trying to beat Wal-Mart's deadlines (2005 for the top 100 suppliers; 2006 for all suppliers). On one hand, the vendors have a number of solutions to choose from; on the other, different types of solutions with different functionality are all being lumped together, creating a confusing patchwork of hardware, software and integration services.

"There's a lot of confusion," says John Pulling, vice president and COO of Provia Software, one of the many software companies offering RFID solutions. "The most common thing we're hearing is, 'How do I get started?' "

Vendors large and small, old and new, have jumped into the RFID fray, all hoping to get an early foothold in what will most likely be a large and lucrative market. RFID tag and reader vendors, supply chain application software providers, and systems integrators and consultants all have put themselves forward to potential customers, all promising compliance with the Electronic Product Code (EPC) standard Wal-Mart is endorsing.

For the most part, the packaged systems typically include some tags, some readers and middleware to handle the data collection. "Everything else is a la carte, which could be a problem for some customers," says John Fontanella, vice president of research at AMR Research Inc. "They want someone to bring this all together. The configuration issue is pretty big for most companies, and right now it's more art than science."

End users want one solution provider, but most projects will require a team effort--RFID systems require a complex mix of readers, tags, application software, middleware and integration skill. Confusion has kept many potential RFID users in the investigative stage, but time is running out for Wal-Mart suppliers to launch pilot projects.

Although offerings vary, most are targeted as fast, simple compliance, says Fontanella. "Solutions are relatively primitive in terms of where the market is going to be in two years," he says. "These are mostly catch-up strategies. Customers don't want to commit too much yet internally."

The Players

A survey of the services being offered shows a market still in its developing stages. Some vendors have customers up and running with their RFID solution; others won't have products available until later in 2004; and a few don't even have their product literature available yet. (For a listing of the various RFID products and services available on the market, see our online comparison chart at www.frontlinetoday.com/bolton.)

Vendors generally fall into a few categories:

RFID Hardware Providers. Many tag and reader providers also offer middleware and some integration services. Many have teamed with application software providers, while others have established programs to certify third-party consultants and integrators. In this group you'd find companies like Matrics Inc., which offers hardware and system support software, as well as integration help. Intermec Technologies Corp. has an RFID Ready-to-Go kit that includes tags, readers, software and professional services. CheckPoint Systems Inc., which has its roots in electronic article surveillance (EAS) source tagging, also offers tags and readers and is planning a data collection middleware release this year.

The Sensormatic division of Tyco Fire and Protection, another EAS vendor, has taken the team approach with its epcSTARS alliance, which includes Tyco's ADT Security Services organization, tag manufacturer Rafsec Oy, reader manufacturer ThingMagic and software provider GlobeRanger.

Application Software Providers. Supply chain management and warehouse management software companies are also now offering RFID solutions. A few companies like Provia (through its work with Gillette's RFID programs) and Manhattan Associates (which offers a bolt-on product called RFID in a Box) are a step ahead of their competitors, but others are catching up.

A few, like EXE Technologies, have modified their existing software offerings to support RFID. Others have teamed up with RFID hardware providers and integrators. Viewlocity, for instance, is partnering with Cap Gemini Ernst & Young, Tyco and others; V3 Systems has formed a partnership with integrator Xterprise and Alien Technology.

Still others are offering packaged solutions. Manhattan's system includes software, support, tags and smart label printers for quick setup and compliance. Provia's RFIDware is an add-on module that lets customers set up smart labeling stations in their distribution centers and send the shipping data to Wal-Mart. Pulling of Provia says some companies will use the bolt-on solution as a temporary fix. "That buys them time to look for a full solution, which gives them more options than just compliance," Pulling says. He adds that some low-volume suppliers could opt to use something like RFIDware as a standalone system, like many companies do with small parcel shipping software.