Global demand is rising by 8-10% annually but local enterprises are not too keen on RFID technology. Instead of joining the hardware bandwagon, Thailand can focus on software d
evelopment.
This year, the market for Radio Frequency Identification (RFID) is 39% higher than 2005, with global sales value projected at USD 3 million by 2010. Nonetheless, the Thai market is still limited to major producers and exporters. Mr. Pitchya Vajarodaya, GS1 Thailand CEO, The Federation of Thai Industries, said RFID will not be widely used until 2011 when tag prices become more affordable due to higher demand. Until then RFID will be used in parallel with bar-coding. With 19 years’ track record in bar-coding, Bordin Sawanpornphen, OGA System Consultant Professional Auto ID Solutions, notes that RFID can read information without touching tags, even in poor visibility and when products are still moving. Micro chips are also resistant to shocks and physical impact.Before joining the RFID bandwagon, local enterprises need to determine their operational objective, i.e., distances to be covered and value added benefits. The new technology is a tool for storing database – similar to bar-coding but more convenient. Efficiency depends on the quality of software and implementation procedures - even the most advanced RFID system can’t solve every kind of problems. RFID can replace bar-codes on automotive products that get smeared with oil. Life cycle is a key factor because micro chips are expensive. In Thailand hiring employees to scan bar codes is cheaper than installing RFID. If cost is higher and benefit is the same, no need to change. Pending price decline and global requirements, RFID chips can be recycled many times over within the same internal production line. When prices become more affordable, the system can be expanded to cover export shipments.920-925 MHz radio frequency range approved by the Office of Telecommunication Enterprises for local users is compatible with international standards. Low frequency (125 kHz) applications within 1-ft. distance include animal husbandry, toll fee collection, subway fare collection, and library loans. High frequency range (13.56 MHz) applies to 3 ft. distances. Ultra high frequency (UHF 860-960 MHz) is used for manufacturing purposes within 20 ft., except for products that contain metal or liquids.RFID technology is currently used by financial institutions, aviation and garment industries, to identify containers or assets. Retailers are also using RFID to manage database, cut scanning & inspection costs. Transport service providers and distributors use micro chips to expedite loading/unloading operations and to reduce time for transmitting data.“Low frequency and high frequency devices made locally can’t be used for logistic management. Most RFID/ UHF readers and micro chips are imported. As this technology has been patented by overseas R&D companies, expanded hardware production will infringe patent rights,” said Bordin.OGA International distributes Intermec machines for smart cards, bar code printers/ readers, wireless equipment, portable computers, scanners, board tables etc. The company also offers maintenance & repair services, software referrals and installation consulting.
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