Asset management using RFID technologies

Most facilities and procurement managers have some computerized system in place for inventory control. Typically this is a tedious process where a bar code with a unique ID is attached to the asset that identifies it within the system. The types of assets can be from metal frames to large machines on a manufacturing floor. Regardless of the cost or the type of asset each entity in the system has to be tracked or accounted for inventory control purposes. As it is expected, annual audits are done manually. Typically, is only then that managers recognize the issues and the time consuming task of manual scanning and even manual recording for the assets within their facilities. RFID is a suitable tool that has the potential to reduce the time and therefore the costs associated with auditing, tracking and locating the assets. There are three reasons RFID technology is the best tool when compared to bar code and manual recording:

1. RFID can read several objects simultaneously at one time with 100% accuracy, therefore time savings can be realized.
2. RFID tags readability do not degrade with time, unlike bar code labels. Therefore, costs of reprinting and re-tagging the assets are eliminated.
3. RFID can enable smart systems and automate processes for asset movement and management at a fractional costs of bar code and manual scanning. Therefore, RFID enables scalability for the business enterprise more efficiently.

The benefits mentioned above make RFID a powerful tool. The main aspect is to design the application within the context of the physics of RFID. To realize the benefits of RFID a through and through analysis of the types of assets and the process of identifying them needs to be evaluated carefully to fulfill customer expectations and attain business objectives. Below, I give some pointers for starters:

1. Decide what type of RFID technology suits the application. As I wrote earlier, there is active RFID, passive RFID, battery-assisted passive (BAP), Wi-Fi Tags, etc. There are several differences for each of these RFID technologies besides price per tag (incremental costs for identifying the asset) and infrastructure costs for data collection purposes. The main aspect that defines what type of RFID technology to select is a combination of the type of asset, environmental constraints, and read range requirements for the application. For instance if the application requires a simple license plate ID read, then passive may be the best choice. If large expensive assets need to be tracked, such as containers, large machinery, or a data rich tag is needed beyond just an ID, then active or BAP tag maybe a better choice.
2. Define the form factor for the RFID tags to fit the assets. Some RFID technologies may be more sensitive to tag placement, orientation and distance with respect to the antenna of the reader, the material of the assets themselves can be an issue, operating environment, proximity to sources of RF noise or metals. All these aspects will define the success and the usability of RFID. A good practice is to have an RF engineer visit the facility to perform a site survey. The site survey should spell the type of infrastructure needed and the expected performance for identifying the different types of assets.
3. Software integration and business logic must be scoped. This piece of the RFID solution will define the type of alerts and type of RFID and related hardware required at each RFID read point. Perhaps this is the most costly part of the application. Typically, on my experience, the RFID middleware vendor in charge of the integration of the RFID network infrastructure can mitigate changes needed at the software enterprise level. However, I would suggest that the main software system that manages the WMS is modified such that the RFID system can be scaled rather than middleware dependent.

I could go on for several more points; however, the points above are a good starting point to evaluate the viability of RFID. Moving forward, to make a decision to implement RFID beyond this point, requires a well defined ROI to quantify the benefits of RFID versus opportunity cost in the form of more traditional technologies such as bar code or even adding more manual labor.

In Summary, RFID is an excellent tool and the varieties of RFID technologies available make it suitable for inventory control, asset management to automate audits and reduce costs of inventory count and procurement costs for the business enterprise.