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Part - XI
High investment
The initial investment by companies for adopting RFID is fairly large. So many organizations are shirking away from the idea of investing in RFID technology. There are others who are conducting an in depth cost benefit analysis before taking the plunge.
Limited range
So far the RFID technology has a limited range in terms of frequency. Therefore many are skeptical about the efficacy of the technology and are questioning the claims made by the developers.
Health concerns
Since RFID technology operates on the principle of radio frequency wave emission, health concerns are propping up. A long tem exposure to radio waves causes many diseases like cancer, ulcers and skin deformities.
Conclusion
RFID technology and the underlying standards are readily available and mature enough to support production-level pilots. RFID will have a substantial and positive impact on supply-chain performance. RFID will improve operating margins, speed the flow of inventory and improve supply-chain service levels. RFID-enabled supply chains will outperform their competitors with regard to operating cost and excellence of execution.
Concluded.
* Contributed by -
Siddharth Mohan Patnaik, B.Tech. (Electronics),
Ravulpathi Janaki, B.Tech. (Mechanical),
II Year, IIM Lucknow.
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