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Selecting RFID Middleware for Supply-Chain Applications
CIO Today
October 4, 2005 8:30AM
"There is a tendency to think that RFID is
unique," said president Dan Mullen of the trade assocation AIM
Global. "But the basic process and the things to consider in using
RFID data are similar to what happens if the data had come in by a
barcode or some other means".
By Mark Long
Implementing RFID in the enterprise
supply chain
is no easy task given the evolving character of today's
marketplace.
There are
uncertainties over the communication protocols, data-sharing
protocols and frequency levels to be used, noted
Frost & Sullivan
senior research analyst Soumilya Banerjee. "As a result, a majority
of the prospective end-users are hesitant to commit any investment
in hardware and software that might be redundant as the market
matures."
So how should enterprise managers go about sorting through all the
hype to get the RFID middleware that is most appropriate for their
business?
"In such a situation, it is always advisable to look at vendors who
have the experience of working in a wide range of business types,"
Banerjee suggested. "Large vendors also have the advantage of having
resources to change their services and product offerings when the
market changes."
The
Platform Perspective
Kevin MacDonald, vice president of client architecture at
Odin Technologies, a vendor specializing in RFID technologies,
believes that selecting the right middleware for RFID applications
is not a straightforward, easy process. "From a platform
perspective, I personally like to divide the market into three
categories in order to put it into perspective: the infrastructure
vendors, application vendors and what I call the 'cogs' -- the RFID
pure-plays."
Infrastructure
vendors such as
IBM
,
Oracle
and Sun "look at RFID as a pipe that you write standards to,
basically wedging it in as part of your overall architecture,"
MacDonald said.
Going with one of these vendors might be great for enterprises doing
deep integration, MacDonald suggested, but is difficult for firms
that are just trying to get something up and running right away. He
pointed out that what vendors such as IBM are looking to do is
expand their footprint in an existing account. "But if you are just
trying to add simple functionality, this approach tends to be a bit
more expensive," he said.
Other application vendors, such as Manhattan, are the guys that come
at the world assuming companies already own a warehouse-management
system (WMS), MacDonald said. "If you already own their WMS, then
it's easy to view it as a natural extension" of something that is
already in place.
But such offerings have very limited functionality out of the box,
warned MacDonald, which is why they tell you to use a third party,
the reason being that they want to provide a standard module to
their entire customer base. "So it is a great fit only if you
already own their WMS," he added.
Enterprises that do not want to buy an RFID system tied to a
specific RFID vendor can turn to a pure-play like Shipcom Wireless,
which can "set your RFID world up as a stand-alone so you can get
everything up and running on a pilot scale," MacDonald said. "This
can be good if you want to get up and be compliant quickly, but not
so good if you are trying for deep integration because it might fall
down with respect to Web services."
Defining Business Processes
One of the most effective ways to think about integrating software
and hardware through middleware is to look at the requirements for
the whole system, not separate components.
"There's a tendency to think that RFID is unique," said Dan Mullen,
president of AIM Global, a trade association that has just formed an
action group to provide industry guidance related to RFID middleware
and application software. "But the basic process and the things to
consider in using RFID data are similar to what happens if the data
had come in by a bar code or some other means."
Mullen said that everybody seems to realize that the value
proposition you really have to leverage is what is happening at the
level of data and software integration. "We want to support the
users in being able to extract that data carefully," he said.
Moreover,
enterprises have to be able to interpret and act upon the data to be
successful, noted Nick Evans,
BearingPoint's
Global RFID solution lead. "This is really no different from other
business application strategies; it presents the same old game plan
for solving business problems with technology," he said.
"We currently have to piece together five or 10 products to help
achieve integration because their needs require so many devices --
active and passive tags, PDAs, bar coding, RFID printers, wireless
infrastructure, and security with
encryption," Evans noted. "Some of the larger applications will
actually need up to 10 vendor technologies."
Avoiding Future Shock
Enterprise managers
also need to keep an eye on what RFID readers and devices the
middleware will support, advised MacDonald. "This is particularly
critical with respect to RFID Gen-2 tags."
Gen-2 tags adhere to
a next-generation RFID standard ratified by the industry in 2004.
They require a different set of hardware readers than tags that
adhere to earlier specifications. Some vendors already have made a
lot of RFID Gen-2 deployments or have gotten their hands on beta
units to evaluate, MacDonald noted. "For others, it is questionable
when there will actually be support."
MacDonald said that when it comes to RFID handhelds, the only
company offering decent support for Gen-2 tags currently is Shipcom
Wireless. "So keeping up with RFID support, handhelds and so on is a
major consideration."
Education Is Key
One key aspect on
which everyone can agree is that CIOs and enterprise managers need
to better educate themselves on the basics of the technology. "Once
they are comfortable with the technology, they should evaluate their
own business processes," Banerjee said. "This is one of the
strongest reasons to test or pilot technology."
A pilot allows
businesses not only to improve visibility in the supply chain but
also to create an opportunity to study internal business processes
very closely, thereby leading to improving internal process
efficiencies, Banerjee explained. If resources permit, enterprise
managers can conduct a comprehensive business-case analysis with
members from multiple teams.
Once the managers
are comfortable with the technology, they will need to pass on their
new-found knowledge to people who are at the edge of the RFID
network and would be the ones most exposed to the technology, like
dock-workers and distribution-center employees. This is to ensure
that resistance to the new technology is minimized, Banerjee noted.
"Most importantly,
managers need to visualize the gains that RFID can bring through an
increased visibility of their supply chain and sharing data with
channel partners," he added.
With respect to
calculating the ROI, Evans noted that once you have targeted your
opportunity areas and understand the current state of those
processes, then you need to think about the future changes in
processes that will take place with RFID. "For example, try to
figure out any changes to labor, any process automation benefits you
can get, perhaps from having less warehouse people," he said.
"But it is also a
good idea to back this up with some testing, do a limited scale
pilot and try it out to see just what the cost-savings benefits
really are, " Evans advised. "Then factor in what the added cost of
the new infrastructure is going to be."
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