Alternatives uses of RFID offer ROI

There's little doubt that the growth of radio frequency identification (RFID) smart labels and other RFID products, such as tickets and tags has been seen as a new opportunity for label converters for some time. Some of the forecasts, however, have not proven to be quite realistic.

Just a couple of years back, the key potential applications for RFID smart labels were seen as being primarily in retail, media management (books, CDs, videos, documents, etc.), fashion/apparel, airline-baggage handling and the pharmaceutical sector.

It was easy to identify and categorize these areas through the amount of press coverage generated, through working groups and legislative bodies, and pressure generated by global brand owners and retailers. In reality, the implementation and application for RFID has evolved somewhat differently than expected.

Today, key market applications achieving the best levels of growth can be found in the fields of asset tracking, cargo tracking and security, supply-chain management (pallet, case, item) and especially identification (travel) documents.

ROI through process improvements

RFID's supply-chain implementation is steadily showing an increased return on investment (ROI) through process improvements, better goods flow, efficient proof of delivery, higher productivity, reduced output times and in improved customer satisfaction.

While growth in RFID smart-label consumables has certainly not yet matched the more optimistic predictions, it has nevertheless reached a fairly healthy stage.

RFID growth is currently quite good and forecasted to get better as mainstream retail, pharmaceutical, transport, ticketing, industry automation, parcel, postage and apparel sectors adopt open-loop RFID systems in the next few years. As well as achieving a positive ROI for everyone in the value chain, it should be said that RFID is not necessarily an opportunity for every label maker.

Making an RFID label is more technical and demanding than just printing a conventional label and so far, it has been characterized by rapid technical development and ongoing investment—not only in equipment but in knowledge.

Developments in other smart-label technology, such as time and temperature monitoring, smart authentication, nanocoatings, etc., linked with RFID solutions for transmitting and collecting data, add to the potential new opportunities for label converters.

Tomorrow is now

At the end of the day, those converters who invest strongly in these fast-emerging RFID technologies will find their futures still just as promising as two, three or four years ago. These are no longer the technologies of tomorrow; they're already here.

At Labelexpo Americas in September, a dedicated feature area—the Smart Label Zone—showcased examples of smart labels via RFID-technology suppliers. Attendees had a chance to view the emerging national and international trends, as well as anti-counterfeiting, brand protection and time/temperature indicators.

Conference sessions focused on security/brand-protection trends and technologies that incorporate smart labels and RFID technologies (see Converting Magazine, Aug. 2008, p. 28, or go to www.labelexpoamericas.com for more details.)

Experts from Hewlett Packard, Appleton, Agfa, EFI and other providers were on hand to discuss a wide range of subjects, among them the latest innovations in product authentication/traceability, the suitability of smart labels for various business applications and graphic-designs for smart labels.