Global logistics company UPS has ruled out introducing
radio frequency identification tagging for small-package tracking
for the foreseeable future.
UPS said it would continue to evaluate the technology for
possible use across other parts of its business.
However, the company said the cost of the cheapest close-range
tags would have to come down substantially for RFID to have a role
to play in its core small-package delivery business, which handles
an average of 1.5 million international packages and documents
every day.
“At package level, barcoding is effective and affordable for as
far ahead as we can see,” said Nick Gray, vice-president of
information services for UPS Europe.
“We have an established barcode infrastructure in place which
meets our needs.”
One of the key differences between RFID and barcode technology
is that RFID eliminates the need for line-of-sight reading, which
barcoding depends on. Also, RFID scanning can be done at greater
distances than barcode scanning.
Although RFID technology is not being used by UPS internally,
the firm is monitoring advances closely, and is able to offer
advice to customers and support RFID’s use in the supply chain.
“We have customers who track shipments where RFID technology is
used and we have tracking systems to support them, such as
WorldShip,” said Gray.
UPS last year took a stake in US-based G2 Microsystems, which
makes RFID chips for managing and tracking mobile devices over
Wi-Fi networks.
The chips allow businesses to track mobile hardware assets
worldwide to monitor their usage and update their security.
The technology uses location-based tracking by tapping into
Wi-Fi hotspots, which could include warehouses, offices and
delivery locations.
UPS drivers and staff use a range of mobile devices to manage
and track deliveries.