Radio Frequency Identification Tag Prices
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Rfid(radio frequency identification) technology is the means of storing and retrieving information without any physical contact. The benefits of RFID are numerous, especially in asset tracking and supply chain management. Despite of large benefits, RFID has not taken off in the right sense. An important factor that has hindered the use of onsite rfid solutions till know has been the radio frequency identification tag prices.
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How radio frequency identification tag prices hinder the use of RFID technology?
An important factor responsible for not implementing RFID has been the radio frequency identification tag prices. This is because if asset tracking is being done by the company within its own premises then it can reuse its tags again making the RFID system cost-effective.
In another scenario where tags are being put on say pallets, etc. as part of open supply chain, there is no question of reusability of tags. In this sense, radio frequency identification tag prices are an important reason as to why most of the companies are not using RFID enabled solutions. The tag prices are fairly high about 20 cents or more. Thus it does not make any good business sense to use them with millions of products in the company.
Rfid and barriers to entry :
Besides radio frequency identification tag prices, other factors preventing RFID from achieving its true potential are:
- Lack of standardization in use RFID products across nations. This especially concerns the frequency of tags.
- Proprietary technology: This means that RFID tags from one company cannot be read by the other unless they are from the same vendor.
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