 | Wednesday, March 19, 2008 Issue 801 | | Will Smith, Editor |  |
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 | Editor's Note: Today's top story is the deployment of an internal RFID materials management system for Vulcan Painters to keep track of its inventory and reduce paint that must be discarded because it has spoiled. The large commercial painting firm reported it saved more than $12,000 in materials the first month the system was used.
ZDNet reports on findings from research firm IDC that RFID took second place in a survey of Australian CIOs about which technologies they expect to invest in this year. (SOA was first, VoIP third.) Usage of RFID among the surveyed group is expected to grow 122 percent this year, with 18 percent of respondents indicating plans to use the technology in 2008. This is certainly a promising finding, if unexpected. While all indicators suggest that RFID adoption has finally turned a corner, it is still a few years from hitting the corporate mainstream. Even the IDC analyst was surprised: "I thought RFID was an odd one to be there, especially in the top 10."
Lastly, Alien has announced the successful completion of a first round of tests to examine its technology's suitability for motorsports timing and scoring. Working with motorsports management and consulting firm Hardcard Systems, Alien equipped a motorcycle racetrack with readers, and eight motorcycles with tags, then accurately tracked the bikes at speeds over 140 mph. The company apparently wants to expand the use of RFID beyond human racing into motorsports racing, which represents a whole other market. While in theory the technology is suited for motorsports racing, tests like these are in order before deployments are actually rolled out. |
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| RFID Tags & Labels | | - Ferroxtag HF tags: Smart on Metal! (site) |  | | Products & Services | | - Real-Time WIP Visibility Appliance from Omnitrol Networks (site) | | - Employees steal over $1 billion per week from employers (site) |  | | Employment | | - RFID Recruiters - 100% Focused on RFID Recruiting (site) |  | | Upcoming Events | | - AWA PABS08 N. America Conference, Sept 11-12, Chicago, IL (site) | | - AWA PABS08 Asia Conference, Dec 4-5 - Hong Kong, China (site) | | - European Supply Chain & Logistics, 13-15 May, Germany (site) | | - RFID World Asia 2008, 8 to 11 April, Suntec Singapore (site) | | - SCAN & RFID CHINA 2008, June 19-21, Guangzhou, China (site) |  | | Research & Whitepapers | | - RFID Marketing Strategies Report (site) |  |
 RFID Saves Contractor $12,000 in First Month
 Vulcan Painters, a large commercial painting contractor in Bessemer, Alabama, credits its new RFID materials tracking system with saving $12,000 in its first month of use. The company applies metal-mount RFID tags to paint cans and other supplies to track what is issued to job sites and returned to storage. RFID tracking has improved inventory accuracy, reduced misplaced and unaccounted for materials, and reduced losses from expired paint.
"Vulcan didn't know what they had on hand. Inventory was expiring because Vulcan didn't know they had it. Now they know not only exactly what they have, but where it all is," Shane Armstrong, operations manager at Atlas RFID Solutions, told RFID Update. Atlas developed and integrated the materials management system, which features Gen2 RFID tags and readers plus tracking software that integrates with Vulcan's legacy systems.
Project managers check out the materials they need for a job using a handheld computer with integrated RFID reader at Vulcan's facility, which dispatches materials for projects in several states. Paint, solvents, cleaners, sand blasting materials, and other supplies are tagged, but low-cost items such as disposable gloves are not. An application Atlas developed for the handheld assigns the supplies to the project manager and specific job in the central records system. When workers enter and leave the facility they pass through an RFID portal reader, which automatically records tagged objects. The system issues an exception notice if the portal reader detects items that have not been assigned to project managers.
When workers return items to storage, they scan them with a handheld RFID reader and enter the storage bin location. The system keeps inventory up-to-date and allows Vulcan to search inventory by expiration date, brand, color, and other criteria.
"The first month alone we realized $12,000 in saved material costs," Rob Post, Vulcan's operations manager, said in Atlas' announcement. "If we had had to buy those materials, we would have paid an additional $2,000 to dispose of the containers. Cutting costs, reducing waste, and tracking our inventory are all important to Vulcan's initiative to go green."
Paint and solvents are challenging to identify with RFID because the liquid products are usually contained in metal packaging. Atlas tested multiple RFID inlay and material combinations before choosing a metal-mount tag with foam backing from Metalcraft that includes Alien Technology's Squiggle Gen2 inlay. Atlas also selected Motorola model MC9090G handheld readers, and portals developed by Venture Research that use RFID readers from Omron.
Vulcan has applied tags to 1,000 items and recently ordered 1,000 more tags. RFID is not used to track materials at job sites, only as they exit and re-enter Vulcan's facility, according to Armstrong. He said the company has considered using RFID for asset management (such as for scaffolding, ladders, and other equipment), but has no plans to apply tags to anything but materials for now.
If Vulcan Painters did want to extend RFID tracking to the work site, the new RFID reader-equipped pickup trucks and work vans that Ford announced last month could help (see Ford Builds RFID into Pickups and Vans to Track Cargo). Both systems use standard Gen2 technology, which provides interoperability and illustrates how standardized RFID ecosystems are growing.
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| RFID Tags & Labels | Ferroxtag HF tags: Smart on Metal! Ferroxtag is a new family of HF RFID tags suitable for operation on metallic surfaces. Ferroxtag's special ferrite antenna was developed using Ferroxcube's years of experience in ferrite technology. The high performance antenna means longer read range with a smaller tag. Visit www.ferroxtag.com |  | | Products & Services | Real-Time WIP Visibility Appliance from Omnitrol Networks Meet the industry's most innovative award winning RFID solution that enables complete work-order traceability in manufacturing. Real-time web-based dashboards and multi-site monitoring for work-order pedigree and traceability, including proactive bottleneck management and real-time performance analytics optimizing shop-floor efficiency. All at the lowest TCO in the marketplace. www.omnitrol.com/WIP. | Employees steal over $1 billion per week from employers the American Management Association reports. 95% of businesses are victimized by employee theft. Managers are reluctant to ask questions, because trusted employees may feel offended, leaving business owners in a difficult situation. What can you do? Nox: Intelligent Perimeter Defense from Simply RFID provides advanced security and protection for business assets. |  | | Employment | RFID Recruiters - 100% Focused on RFID Recruiting Whether your company is looking for the best RFID talent or you have the best RFID talent and are looking for the best RFID employer, RFID Recruiters offers the most focused approach to your objective. To learn how the RFID industry and the RFID job market are evolving, visit www.rfidrecruiters.com |  | | Upcoming Events | AWA PABS08 N. America Conference, Sept 11-12, Chicago, IL AWA is organizing the Product Authentication & Brand Security Conference 2008 on September 11-12 in Chicago, IL. The event includes presentations and panel discussions with brand owners, legal authorities, associations, converters and suppliers; also networking sessions, a supplier forum, a social program and more. Find more on the program here. | AWA PABS08 Asia Conference, Dec 4-5 - Hong Kong, China AWA presents the Asian Product Authentication & Brand Security Conference 2008, to be held on 4 & 5 December in Hong Kong, China. PABS08 Asia focuses on the threats specific to the Asia Pacific region, various elements of IP Theft, and leading-edge solutions. Find more on the program here. | European Supply Chain & Logistics, 13-15 May, Germany Bringing together Europe's leading providers of supply chain management to evaluate best practices and to move the supply chain agenda into the boardroom. Also, featuring the AMR Research Strategy Session: What makes a supply chain world class in today's global market? More information here: www.supplychain.eu.com | RFID World Asia 2008, 8 to 11 April, Suntec Singapore RFID World Asia 2008 is THE event for finding out the transforming power of RFID for your business and its future. Sign up now for RFID Asia Summit 2008, targeted at senior-level executives; to understand and reap the benefits of this new business tool. For more information go to www.terrapinn.com/2008/rfid | SCAN & RFID CHINA 2008, June 19-21, Guangzhou, China As one of the earliest, most specialized and authoritative exhibitions in China, approved and supported directly from State Ministry, the 8th SCAN & RFID CHINA 2008 will present you the impressive up-dated development and market of RFID technology in rising China. To know more, please go to www.scan-china.com. |  | | Research & Whitepapers | RFID Marketing Strategies Report Thirty-nine pages of original research on RFID audience perceptions, including 30+ figures of tactics, content & messaging, and recommendations to guide marketing strategy. Also, Top-10 RFID company rankings based on 550+ survey respondents. View the executive summary free, with Top-3 sample rankings. Only $495 Individual License or $795 Corporate License. Available now |
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