Bar Codes and RFID: Finding Harmony Amid Co-Existence

Author:Michael Liard | Research Director, RFID & Contactless

2007-04-10

As the industry moves ahead with RFID integration, one of the critical issues has been the need for manufacturers, logistics providers/distributors, and retailers to work seamlessly within a mixed technology environment containing both bar code scanners and RFID readers. ABI Research believes it is highly unlikely that RFID technology will ultimately replace bar code. Even with the inevitable reduction in raw material costs coupled with the economies of scale, an RFID tag will never be as inexpensive as a bar code label. The two solutions are more complementary than competitive. And, we think end-users have embraced that fact amid all the RFID hype. The burgeoning use of RFID is not going to remove the need for bar code labels on goods, as there are always going to be those users who have existing bar code equipment that will continue to be leveraged or who have purchased second hand equipment for low levels of machine readable tagging or who do not have RFID application requirements.

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