RFID for Inventory Management in Government

Benefits/Risks of Implementing RFID Today

Potential Benefits with RFID Implementation
RFID could help government agencies improve the efficiency of the inventory process when compared to the current paradigm that is barcode tagging. RFID offers increased data storage capabilities, no line-of-sight restrictions, longer read ranges, and simultaneous tag-read capabilities. Furthermore, depending on exact specifications, the technology also affords tag-write capabilities and real-time asset visibility.

Potential Risks with RFID Implementation
RFID implementation has many risks and challenges. The associated costs can be quite prohibitive and make positive ROI estimates difficult to achieve. Integration with the current IT infrastructure (e.g., asset management software, wireless) is a particular point of challenge. There are also questions among some experts regarding the maturity of the RFID industry.

Recommendations

Identify Business Needs and Plan the Architecture to Meet Those Needs
Before any RFID implementation (including a pilot) is carried out, government agencies must specifically address such issues as what items will be tagged, how the data will be collected, where the data will be stored, and how to integrate the system with the current infrastructure.

Too Early for Full Rollout
If RFID can generate significant efficiencies in key business processes then a deployment would seem to be the next step. However, the average government agency that currently uses barcodes for asset management and inventorying purposes might find it risky to implement RFID in the next year. The RFID landscape is rapidly evolving, with hardware and software offerings becoming increasingly robust, and committing to a specific vendor solution at this time might actually be disadvantageous. Additionally, keep in mind Microsoft and Intel have joined forces on a Biztalk RFID approach.

Watch, Prepare, and Adapt
Experts agree it will be at least several years until RFID finds more mainstream application. However, experts also emphasize the importance of keeping abreast of the developments and trends in the industry in preparation for future rollout; participating in pilots is one means to this end. Once the specific needs and required architecture are identified, pilots should be initiated.