Cargo security makes strange bedfellows

Staff -- Purchasing, 3/16/2006

Siemens and General Electric have teamed up to develop an RFID-based technology to make container shipping more secure. The Commerce Guard project will develop RFID-based devices to determine if shipping containers have been tampered with in transit. The reusable Container Security Device will cost in the $100 range and will record and transmit information from inside the container. Michael Chertoff, U.S. homeland security secretary, said he was eager to "look at new technology that would give us some greater visibility into the supply chain earlier on." GE and Siemens will jointly market the technology in the U.S. and Europe, while Mitsubishi will be a marketing partner in Asia. 

The doors officially opened on the RFID Solutions Center Dayton, an Ohio facility devoted to RFID discovery, innovation and successful implementation. Alien Technology Corp. is sponsoring the center, which provides educational, R&D and real-world implementation resources to highlight the benefits of RFID technology. The services of the RFID Solutions Center are available to organizations involved in the implementation of RFID technology, including enterprises, government agencies and their partners. It houses sophisticated technical labs, and extensive test and piloting facilities, as well as the capital equipment needed to simulate a wide range of real-world RFID situations in consumer packaged goods, retail, transportation, defense and pharmaceuticals.

The RFID market in China neared $200 million in 2005 and is expected to grow swiftly in coming years. A recent report from Research and Markets found that "RFID products have an enormous market potential in China" and said "the market is driven by the mandates issued by Wal-Mart and other retailers." China is expected to use more than five trillion tags annually in sending supplies to Wal-Mart. But in coming years China will be a large consumer market for RFID products as well. RFID technology will also be used in 2008 Olympics to be held in Beijing.