Unsolved problems

For item level applications with the biggest potential, no one knows how to make smart labels and appropriate infrastructure with the required price- performance combination as yet. We do not even agree as to what frequency should be used or whether the tag has to have a silicon chip in it. However, the easier item level applications are being successfully tackled, contrary to popular understanding which is that item level tagging is so tough to do that it must follow the current frenzy of tagging of pallets and cases under mandates from major retailers and military organisations worldwide.

Started already

In reality, item level tagging is happening alongside the much publicised tagging of pallets and cases. Indeed, the IDTechEx Knowledgebase of over 1300 case studies of RFID in action around the world already has analysis of over 110 item level trials and successful rollouts. See www.rfidbase.com.

Modest experience so far

About 150 million items have been tagged in the world so far, mainly laundry and library items where the tags are fitted for a life of at least several years so tag cost is not critical. This is very different from CPG tracking but some lessons from this experience may be relevant. These inclide: Sometimes it will become a legal requirement eg recycling, safety of car tyres Multiple paybacks are the norm Tags paid for and fitted in one part of the value chain may be used by others (eg laundry tags used by hospitals for inventory control). The parasitic user then pays only for infrastructure and its support, not for tags. This can be a considerable saving, varying from 20% of total system cost of ownership over life for the smaller schemes to 50% for the dream of tagging trillions of CPG. No one frequency or design fits all but purchasers will sensibly try to standardise as much as possible. Global open standards are preferable. Privacy concerns have been small or non existent, particularly where consumers see benefits.