July 3, 2009

RFID has key role in Acqsys asset servicing model

 

Today's challenging economic times are spurring the creation of new innovative business models to help restructure companies' finances and shift assets from company balance sheets to generate capital that can be better utilised within the business.

One new business model that has recently emerged and is now operating across Europe is the streamlining of the servicing process for manufacturers by taking assets off manufacturers' books, releasing working capital and reducing the number of separate, scheduled servicing trips by numerous distributors.

One of the pioneers of this new business model is Reading-based Acqsys,  which is now working with leading manufacturers in the food and beverage industry to help them free up that working capital from their assets. 

Acqsys is a global asset management solutions organisation servicing asset-intensive customers in the food, beverage and transportation sectors. Its clients typically include large investment grade food and beverage manufacturers and staple food and drinks businesses, including Heineken, Scottish and Newcastle, Danone and Nestle.

As well as releasing capital and asset management, other business benefits accruing from the Acqsys business model are improved sales productivity, better asset traceability, more effectively managed asset lifecycle costs, reduced assets losses, and reduced cost of servicing assets.

Where does RFID come in? Through its partnership with radio frequency identification (RFID) specialist Intellident, Acqsys will put RFID tags on all its assets so that when a manufacturer's salesperson visits the client, he or she can use a PDA to scan the device. This can prevent fraud by accurately recording assets on an asset register while also accurately tracking the maintenance life of the asset for depreciation purposes.

For the food service industry, whose equipment typically encompasses assets such as ice cream refrigerators, coffee machines, vending machines, water coolers, hot and cold beverage machines yoghurt-makers and beer taps, servicing of their assets is an expensive and time-consuming business. For example, for Heineken, the world's third largest brewer, equipment that costs around 100m Euros (£85m) to acquire across Western Europe will cost 50m Euros (£42m) a year to clean and service. That's nearly half the costs again in maintenance after the initial purchase price.

Assets are a complex business and the investment can be very cost intensive.  The main driver for a food service company is to find the most effective way of managing an asset operation, and getting the balance right between throughput, payback, and the efficiency of the asset. What a manufacturer is asking itself is, 'Can we place equipment in certain outlets that drives output through them - and what is the most effective way of doing it that drives both traffic and volume?'

Ice cream refrigerators are an ideal example of such assets. On the Iberian Peninsula, there are 100,000 ice cream refrigerators owned manufacturers. Those assets are held on the manufacturers' balance sheets, and serviced by their distributors (or concessionaires) at point-of-sale locations such as cafes, bars, supermarkets or at the beach. These high value assets out in the field are a step removed from the manufacturer, making them notoriously difficult to audit. One ice cream manufacturer who only did an audit every three years found it had fewer assets than it originally thought.

As this business model for the servicing of food service assets comes into its own, you can expect RFID to play a growing role in improving asset management and reducing asset losses.

 

July 1, 2009

RFID's tracking of assets in the data centre grows

Use of RFID within the data centre to track IT assets is growing, according to this article on IT Business Edge, which says the Financial Services Tech Consortium has been developing standards for IT asset tracking.

Perhaps inevitably, compliance is the driver, in the shape of Sarbanes-Oxley legislation. Vendor members of FSTC include Microsoft, IBM and eBay, with banking members including Bank of America, Wells Fargo and Fidelity Investments.

You can read more about FSTC's investigation into using RFID by following this link to a piece in RFID Journal

May 13, 2009

EC recognises EPCglobal message over RFID

 

The headlines may say this week that the European Commission adopted a set of recommendations to make sure that everyone involved in the design or operation of smart chip i.e. RFID applications that respects the individual's fundamental right to privacy and data protection..

The reality behind the recommendations is that the EC has had to recognise reality and rein back some of its proposed RFID recommendations after intense lobbying from current and future would-be RFID exponents warned that the EC's hobnail boots threatened to trample all over the sapling RFID industry.  A commonsense approach that satisfies all has prevailed.

Not too many months ago, organisations such as EPCglobal were trying to get over their message to the EC that "with RFID applications at a fledging state, the business case for RFID for many retailers is still only just about positive and others still have difficulty finding it.  Any EC requirement to offer deactivation with all its complexities, or even ubiquitous simple tag removal, would be very likely to result in the stopping of item level adoption by retailers.  This is likely to halt the long term opportunities and benefits of RFID for consumer and retailer before they have been obtained. RFID offers a real opportunity for European retailers to become more efficient. This will not happen if the legislation fails to strike the right balance between consumer protection and the benefits consumers and retailers can obtain from an efficient service driven retail industry."

The clear message then was that functionality in RFID technology goes hand in hand with cost. Any functionality, security, privacy or other, has a price. If goverments regulate in any way there is bound to be a private sector outcry on cost. However a laissez faire approach without adequate regards to protecting the rights of ALL participants, including citizens, is possibly a recipe for trouble. This is one of the issues government policy makers fear. The impact of culture and local societal values in matters of security and privacy cannot be underestimated. There is a fear that RFID could go down the same road in public perception as GM foods with decisons being based on irrational emotions and politics. If so, opportunities could be lost.

It seems those fears have been understood and taken on board within the corridors of power in Brussels when it came to discussions over the deactivation or removal of tags.

GS1 EPCglobal, which has been an active and committed stakeholder throughout the process, says that consumers and businesses will both benefit from the recommendation's practical guidance for leveraging the benefits of deploying RFID within the European Union, while protecting the privacy of consumers. Hence, this text is the result of contributions from different stakeholders and in a sense, all stakeholders are winners.  GS1 EPCglobal considers that efforts should now be placed on how to efficiently implement the provisions of this Recommendation, and it will work with its community of users towards that end.

April 27, 2009

RFID-enabled magazine

Gadget-loving blog ShinyShiny brought to my attention a little RFID Amusement.

The French-language cultural magazine Amusement has published a print issue with an RFID chip attached, which, when read by a suitable RFID-reader, provides access to additional content.

There's a very basic video overview of Amusement's RFID chip in use over at Shiny's site (focusing almost as much on Nabaztags as on Amusement) or you can visit the magazine's own site for more information (although this is probably best for the French-speakers among you).

October 16, 2008

EU announcement on RFID privacy expected soon

Earlier in the year, I wrote here about the European Commission's ongoing discussions about how it should treat RFID. It then held a public consultation, with the likelihood that some form of legislation - or guidelines - over privacy would follow around six months later. i.e around now

I hear that these discussions are reaching a head and that some form of announcement may not be too far away. That would coincide with a recent meeting in France over the 'Internet of Things' reported recently on EurActiv

France wants to introduce new privacy rights for consumers, and as current holder of the rotating EU Presidency, it is in the box seat to introduce those rights. Watch this space!

October 13, 2008

RFID and a recession

So no-one's afraid now of mentioning the R word. It's no longer a question of talking ourselves into one. We're here - although some of the banking news today is a little more encouraging (so far!)

Already I've seen posts that discuss the benefits of open source and collaboration technologies in a recession. I wonder what the prospects are for RFID projects? Does less discretionary budget mean RFID-based projects cannot get off the ground? Or does the need for business to be more efficient point the way towards cost-effective initiatives that offer an opportunity for organisations to consider RFID (even on a pilot scale), that they haven't got around to doing anything about before? There are opportunities for organisations to learn more about RFID by visiting centres of excellence such as the RFID Test Centre in Cheshire.

Ultimately, does RFID necessarily have to be a big-ticket item? Or are there ways of making it work industry by industry, even in challenging times?

 

 

 

August 14, 2008

RFID and the vulnerability of transport systems

There's been a lot of talk about the injunction brought to prevent a discussion at Defcon about hacking in to RFID card-based transport systems, which has implications for a number of cities around the world.

According to a rather less than complimentary piece about RFID in Fierce CIO, there is an RFID vulnerability assessment report which talks about the problems with the Massachusetts Bay Transportation Authority (MBTA) systems.

You can view the article here and the vulnerability assessment here

August 4, 2008

Packaging industry discusses merits of bar codes v RFID

The latest edition of Packaging News has an interesting discussion on the merits of RFID against the use of bar codes. For now, it concludes that, for primary packaging at least, bar codes remain the technology of choice, and it may be that way for some time to come. Organisations who are investing in technology for "primary pack coding" continue to choose bar code systems over RFID.

Savvy watchers have always concluded that it is simply not a case of bar codes v RFID, because the two will co-exist for some time yet. While the article doesn't tell us much more "about why RFID  is not completely there" (in the retail world) - it does have significant traction in other sectors - the piece does give a useful summary of the thought processes affecting the packaging industry.

Ultimately, I wonder whether the choice of bar codes or RFID will ultimately also be impacted by the green argument, with a desire for more environmentally-friendly packaging - or simply less "wrap-around" altogether. This is an area, I'm sure, that the packaging industry, together with retailers, is already addressing in its future planning, especially with the Courtauld Commitment in mind. The Courtauld Commitment has an ultimate target of decreasing the amount of packaging waste by 2010.

 

 

July 31, 2008

Sharing information collected by RFID

I came across an article this week which discusses moves that the German government is making towards aiding collaboration processes for businesses utilising RFID.

The work, by the German Federal Ministry of Economics and Technology, is tackling the problems companies face when sharing the information they collect via RFID. The project, known as Ko-RFID, began nearly two years ago, and runs until September next year.

You can read details of the project on RFID Journal here

The project is part of the German Government's Next Generation Media Programme

July 29, 2008

The EU gets SMART on RFID

Although much of the discussion on RFID within the EU seems to have been around privacy issues, there are some interesting initiatives underway. One of these is the SMART project, which is currently making progress on building a complete RFID application platform.

The potential applications could transform retailing, the EU suggests. For example, if one product is selling well at store A, but selling badly at store B, RFID-powered inventory systems could initiate the transfer of the product from one store to another.

The Sixth Framework Programme-funded SMART project will go into phase one of its testing from October where it will be running two test scenarios in two pilot phases for RFID retail applications. The first phase of the pilots will test the back-office functions, while the second will put more emphasis on consumer aspects.

The first test involves stock tracking and activity monitoring for promoted goods, such as bath foam. The supplier is able to monitor shelf and backroom inventory for the promoted product, sales location, consumer preferences for gifts and so on, making adjustments to promotion activities while the event is still running.

The second test involves an automatic discounting system for products - specifically, meat - that is nearing its expiry date.

Once the results are back from the initial pilot phase, SMART will integrate the indicated improvements in the system and then run a second pilot test in the first half of 2009.

Here are a couple of links for more information:

http://www.smart-rfid.eu/

Smart Fact Sheet

 

 

 

 

David's homepage

Subscribe to this blog

Recent Comments

tartralia on The RFID Forum - and Acti... : The Exordium Networks Inc agent program is a way f...
Cozzanoah on Aberdeen Group identifies... : hi...
Faisal Alani on RFID and a recession... : You need people to understand why and how RFID can...
GreammictGoto on The RFID Forum - and Acti... : Great post dude, Thanks alot......for sharing. You...
ISO 13485 Implementa on Worries over potential RF... : Working in the registration business, Mark Kaganov...
Roubmiz on The RFID Forum - and Acti... : Hi. I regularly be familiar with this forum. This ...
Sam Liu on RFID and a recession... : Even before the current recession we've seen a shi...
John Williams on RFID and a recession... : Well, for what its worth we're still seeing intere...
JeremyNk on The RFID Forum - and Acti... : Hi Members! I am looking for best web hosting p...
Chris Kapsambelis on Packaging industry discus... : In the battle between bar code and passive RFID ev...

Tag cloud

Archives