Section 6.3. Advantages of Bar Codes Over RFID

6.3. Advantages of Bar Codes Over RFID

The advantages of bar codes over RFID are as follows:

• Lower cost. The cost of implementing a bar code solution is generally less than that of a comparable RFID solution.

• Comparable accuracy rates. In several cases, the accuracy of a bar code solution is about the same, if not better, compared to an equivalent RFID solution.

• Unaffected by the material type. A bar code system can be used to successfully tag almost every kind of material.

• Absence of international restrictions. Bar code systems are used worldwide without any legal limitation on the use of the technology.

• No social issues. Today, you can find bar codes on almost every item on the planet, but no privacy rights group object to its use.

• Mature technology with large installed base. Bar code technology is probably the most widely deployed technology in the world.

The following sections discuss these points in detail.

6.3.1. Lower Cost

The cost of a bar code is close to zero, whereas cost of an RFID tag is about 20¢ or more for UHF tags when ordered in large quantities. In addition, an average price of a bar code handheld reader is less than $400; the cost of an RFID handheld reader is more than $800 for UHF readers. Similarly, stationary bar code readers on an average cost less than $700, whereas RFID readers currently cost more than $900 (UHF readers). For 13.56 MHz readers, the cost of handhelds and stationary readers is generally less than the UHF readers, but 13.56 MHz tags are generally more expensive than UHF tags. For RFID, additional hardware is requiredantennas are also needed besides the reader. The cost of an RFID antenna (both linear and circular) typically ranges from $150 to $500. More expensive antennas also exist. The cost of an RFID reader and the antennas (generally two per reader) drives the price differential between the bar code and RFID readers even higher. On the other hand, a high-quality, long-range (about 15 to 20 feet) stationary bar code reader might cost several thousand (more than $5,000 is not uncommon). For high-quality handheld bar code readers, the cost could be more than $4,000. These prices are more than most of the RFID readers available on the market even when the typical cost of antennas (two antennas per reader) is factored in. However, these expensive bar code readers might not be necessary for a typical application. Even assuming the difference in cost between the highest-priced bar code readers and the cheapest RFID readers and antennas, the recurring cost of RFID tags (assuming that the tags are not recycled) will ultimately overrun any cost savings thus achieved.

6.3.2. Comparable Accuracy Rates

The current bar code systems installed in production systems have generally high read accuracy. Read accuracy in the range of 90 percent is common, and accuracy of 98 percent is not uncommon. Therefore, for these types of applications, RFID cannot offer more than a 10 percent increase in accuracy, assuming, of course, an equivalent RFID system will actually work better. Depending on the operations environment and other factors, such as tagged object material type and content, an RFID solution might actually do worse than the equivalent bar code solution.

6.3.3. Unaffected by the Material Type

A bar code can be put on an object made of almost any material, regardless of whether it is RF-lucent or RF-opaque for the RFID frequency used. RFID tags can be read with difficulty, if at all, on metal and some liquids in UHF and microwave frequency ranges. Therefore, if an environment has too much metal in it, an RFID system might not work well when operating in these frequencies.

6.3.4. Absence of International Legal Restrictions

Bar code technology works on optics principles, whereas RFID technology works on the principle of RF waves. This distinction has an important bearing on the legal limits of use of the technology. No international limit applies to frequency of light, but quite a few restrictions apply to RF waves. Widely varying international limits apply to RFID system frequency ranges and with reader transmission power. Therefore, an RFID system built for a particular frequency type in one country might not be legally compatible in another country or might require nontrivial modifications that result in multiple systems for essentially the same application. As RFID evolves and its acceptance increases, some of these restrictions might disappear as governments cooperate to loosen the frequency and power restrictions to reap the benefits of RFID. Multiple-frequency readers from vendors offer an alternative solution to this issue.

6.3.5. No Social Issues

A bar code has no social issues tied to its use because the bar code type that is put on an item is only meant to identify the product type and provide other information such as price in a generic manner. Thus, a bar code on a packet of potato chips identifies the packet as containing potato chips and the price. However, it does not identify a bag of potato chips uniquely from another bag of similar potato chips. Not that this cannot be done using a bar code type that stores more data, but it is not done today. This anonymity obviates social issues, such as privacy-rights infringement concerns, that currently impact the acceptance of RFID. Tagging an item with a bar code is accepted today worldwide without raising any eyebrows, but trial efforts using RFID have caused public uproars from privacy-rights groups and lawmakers. Until legal, business, and technological interests settle this debate, it might present a hurdle to ubiquitous acceptance of RFID (see Chapter 5, "Privacy Concerns").

6.3.6. Mature Technology with Large Installed Base

Bar code has been in existence for the past 30 years. In these years, the technology has matured tremendously. More than 50 bar code standards are currently in widespread use today, and several of these standards (for example, UPC and EAN) enjoy widespread support around the world. Today, bar codes are ubiquitous in every facet of the economy. Currently, it is estimated that every day, about five billion bar codes are scanned. In fact, bar codes are so ubiquitous today that they seem to be mundane and hardly worth consumer noticea true sign of a successful technology.

Compared to the success of bar codes, the success of RFID today can be said to be extremely limited both in terms of the array of current application types and the collection of application members inside such types. RFID technology is considered an emerging technology, and as such, it is still in its infancy. The price and performance of the hardware, the complexity involved in designing a medium to large solution, and the privacy-rights infringement concerns for item-level tagging might delay RFID widespread adoption for some time to come.

RFID and bar code technology taken together do not cover every application that is possible. Both have common disadvantages, which are covered in the following section.