Sir,
You comment on the potential for active radio frequency identification (RFID) to have a greater role to play. (Tuned in to the right frequency, December 15) You also correctly identify two major barriers, namely the cost of tags and privacy issues, both of which are significant for passive tags as well as active ones. Although the longer-term potential of RFID is exciting, such barriers mean that it could take many years before it becomes a ubiquitous technology.
There are also examples where well-designed trials using lower-cost passive tags are proving highly effective. A trial to combat pharmaceutical fraud through Authentication at the Point of Dispensing is being undertaken by Aegate. By proactively consulting on potential issues with privacy groups during the design stage, and implementing a code of practice, Aegate has been able to satisfy these concerns. Believed to be one of the largest of its kind, the trial involves six pharmaceutical companies, 50 dispensing outlets as well as industry bodies to test a solution to combat pharmaceutical fraud. This trial uses a range of technologies, including passive RFID, and addresses a very different issue thereby giving more value than the majority of RFID trials.
We therefore urge organisations to look beyond the more routine supply chain and operational activities where existing technology (for example barcodes) can often still meet the requirements and where the cost of RFID will outweigh the benefits for many years. Companies must identify those areas where RFID can deliver significant value and a sound payback today.
