RFID for Rent

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 10/18/2005

Demand for RFID is slower to develop than was previously forecast with cost often cited as a contributing factor. With that in mind, hosted RFID solutions are beginning to emerge. Quite simply, these solutions are designed to lower the cost of implementing and managing an RFID solution or network.

For instance, Seeburger (770-604-3888), a provider of business-to-business integration services like EDI, is rolling out IDnet. This is a simple hosted solution for low-volume suppliers to Wal-Mart or the Department of Defense. For $300 to $500 per month, end users can upload their product codes to IDnet, which will generate and mail the RFID tags to the customer.

If required, IDnet will also forward an advanced shipment notification (ASN) to Wal-Mart or the Department of Defense (DoD). “If you’re a DoD supplier, you not only have to put a tag on a carton and a pallet, you also have to generate an ASN,” explains Philip Calderbank, vice president, RFID, at Seeburger. “Traditionally, that requires about $25,000 worth of software. That’s just not feasible for a lot of smaller suppliers.”

Then, there’s RadiantWave (936-371-0578), which has developed a transaction-based system for managing mobile resources like returnable containers and pallets

We looked at the market and identified two key impediments to RFID adoption,” says Mike Dempsey, a principal with the Texas-based start-up. “One is the cost, especially the initial cost of active, reusable tags for tracking assets in a closed-loop application. The other is that there are still questions about how to implement the technology and gain an ROI.”

RadiantWave will design and implement a solution, including the hardware, software and services. The end-user then pays either a transaction fee or a subscription fee based on the number of assets tracked and the number of movements.

Meanwhile, Savi Technology (408-743-8000) is applying to the private sector some of the knowledge it has gained as a leading provider of RFID services to the U.S. Department of Defense. Working with the military, Savi helped develop an active RFID cargo tracking system with 1,500 locations in 45 countries.

“Using that same technology, we are building a global RFID communications infrastructure at seaports for shippers, carriers and third party logistics providers,” says Mark Nelson, director of corporate communications. “With some hardware and tags, a customer will be able to access the network and send information on a per container per trip basis, just like using your cell phone service.”