The IT world is, or at least has been,
abuzz with the whole notion of
software-as-service—a trend that many see as being of more benefit to the software
providers' bottom lines than it is to end users.
However, the announcement on March 26
that AT&T is joining other companies in the
RFID-as-service space may actually be good
news for you.
RFID-as-service might be viewed as
nothing more than the ultimate slap-andship implementation but it could also be seen
as a logical extension of outsourcing that
could allow companies to focus on their core
competencies rather than divert time, energy
and human resources to learning about the
arcane and sometimes frustrating "science" of
RFID implementation.
While many companies have turned to
third party logistics providers (3PLs) for their
short-term RFID labeling needs, 3PL services
don't actually benefit
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the manufacturer or
shipper. All they do is remove the burden of
implementing an RFID labeling program
internally.
With RFID-as-service, on the other hand,
the service provider would perform the RF
site survey, determine appropriate equipment
options, examine wired and wireless
infrastructures, implement upgrades as
necessary—and here's the really important
part—expand the system into the facility as
the need or ROI case requires. The service
provider would provide and maintain the
equipment and could, as an option, host the
data and interface with EPCglobal's EPCIS or
other data service.
As more companies begin to realize that ROI
from RFID comes from internal applications,
not from meeting mandates, interest in RFID
for work-in-progress, asset tracking, sensor-enabled RFID, and other applications is
beginning to take off. Companies that have
struggled to meet mandates may simply not
have the interest or resources to devote to
implementing systems that could provide ROI.
And that's where RFID-as-service really
begins to shine. More than leveraging an
integrator's previous experience with RFID
implementations in other companies, RFIDas-service leverages the provider's ability to
evaluate, plan and implement the service
without requiring an outlay of capital funds.
Because RFID-as-service makes it easier
to implement an RFID system, companies
that want to start using RFID for receiving
and other internal applications now have an
additional resource to point to in order to get
their suppliers to begin RFID tagging. Not
that RFID-as-service will necessarily make the
negotiations with suppliers any easier but it can
take away one of the possible objections (i.e.,
lack of knowledge about RFID).
Of course, the downside to RFID-as-service
is that it's an ongoing expense. Companies
would have to evaluate the cost-benefit of
bringing in consultants and integrators, RFID
education of IT personnel, and equipment
purchase for a purely in-house implementation
versus the cost of implementing RFID-asservice on an essentially a la carte basis.
For companies that want to "jump start"
an RFID program without tying up internal
resources, an RFID service provider may be
the best answer. For others, having internal
control over the system may be the only
suitable situation.
Nonetheless, the emergence of RFID-asservice offers companies new choices and new
opportunities. Having a "Plan B" is always a
good thing.
Bert Moore is a
20-year veteran of
the AIDC industry.
He is director of
IDAT Consulting & Education,
Alpharetta, Ga.
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