Microsoft throws its significant opinion into the RFID debate


It appears that Microsoft believes the time is here for all retailers to ‘sh*t or get off the pot’ – that manufacturers are making a wholesale move towards Radio Frequency Technology (RFID) and those retailers who don’t embrace it will likely suffer in the long-term. Most major manufacturers already have their pallets and cases tagged and, according to Microsoft, “In the retail industry, this is likely to impact around 200,000 manufacturers and suppliers, and will fuel the global market for hardware and software to support RFID”.


The RFID Basics
What do you need to get active?

In fairness, most of the work has already been done for you by a sophisticated software network that enables lightning quick collection and distribution of local-based information. In order to get busy, you’ll need certain applications that will track, monitor, report and manage items as they move around the country. This is your major initial financial outlay. Then you’ll need tags and readers. All information stored on RFID tags, such as product attributes, dimensions and prices, accompanies items as they travel through a supply chain or other business process. This information can then be scanned wirelessly by a reader at high speed and from a distance of several yards.
The real expense is in the tags and readers – tags in particular are currently prohibitively expensive, though the cost is ultimately expected to drop in the usual manner. Your task right now is to optimize your position by finding the correct balance between timing and cost – an important challenge. It would appear (at least if Microsoft and Walmart are to be believed that there is no long-term alternative to RFID)


Microsoft’s Standpoint:

Microsoft and RFID Standards
Microsoft is playing a key role in the development of RFID standards. In April 2004 the company joined EPCglobal Inc., a member-driven organization comprised of leading firms and industries focused on creating a standards-based network to support RFID worldwide.

Besides joining EPCglobal, Microsoft announced the formation of a new Microsoft RFID Council, which will focus on how retailers and manufacturers can track and ship their merchandise more effectively using the technology. Operating worldwide, the Council aims to deliver RFID solutions that comply with global standards, are low-cost, simple to deploy, and built on a robust, scalable technology infrastructure. Members of the Council include major consulting firms, system integrators, independent software vendors (ISVs), and hardware manufacturers.


Microsoft RFID Partners
The Microsoft RFID strategy is based on collaboration with world-class industry experts, application software vendors, system integrators, equipment manufacturers, and retailers. These partners develop and implement solutions that are affordable, reliable, and can be supported on open-standards-based technology, enabling customers to achieve greater operational efficiency and reduce costs.

The following partners offer or are developing RFID-based solutions based on Microsoft technology:


Accenture
Accenture has been working with RFID technology for nearly a decade. For the near term, their vision for RFID is to eradicate black box areas of the supply chain—allowing for a new level of visibility into product location and movement that would eliminate uncertainty across the supply chain. Accenture offers high-performance solutions that help clients seize opportunities—from efficiency and profitability to complete value chain transformation.


HP

HP is dedicated to driving global RFID standards, implementing RFID practices and developing new solutions and services to help customers change and reduce costs. HP offers RFID-enabled retail goods and RFID consulting and integration services. The company is also a participant in global RFID standards development, an early adopter of RFID in its own operations and an innovator of technology solutions.


Infosys
The Infosys RFID solution for compliance and beyond addresses key issues facing suppliers and provides strategic direction on the use of RFID. The solution combines strategy, business process, technical consulting, and implementation services, leading organizations to comply without compromising their future potential. The solution is based on Microsoft .NET and is scalable across multiple mandates and mandate expansions with minimal initial exposure. It provides customers an opportunity to transform a cost driven initiative into a competitive differentiator. Infosys is a Microsoft RFID Partner Council member and is engaged with Microsoft on RFID inititatives.


Intel

Intel is working with leading retailers, consumer-packaged goods companies and researchers around the world to drive solutions from Intel Itanium 2 architecture running back-end databases, to end user devices based on Intel Centrino Mobile Technology or Intel XScale technology. These technologies will provide the underpinnings of a transformation that will lower inventory and supply chain management costs and drive customer loyalty through a new personalized shopping experience.


Manhattan Associates
Manhattan Associates offers RFID in a Box, a flexible, scalable and componentized solution that provides everything needed to affordably and readily deploy and begin using this technology. Their highly configurable integration system for RFID eases integration across platforms and eliminates much of the custom development typically required of an RFID project. Built on a foundation of integration with high-speed, high-volume systems—such as conveyors, advanced material handling systems and voice recognition technology—this system can integrate RFID into any supply chain execution or ERP application.