3 Trends to Watch For in RFID-Based Authentication

Anti-counterfeiting methods like holograms, special inks, and tamper-evident closures help industries reduce shrink and maintain brand protection. But how effective are they?

Because these strategies require visual authentication by a worker somewhere in the supply chain, all products must be read or scanned within line-of-sight. Which means a checker can handle just a single product at a time. Pretty inefficient. 

That's why pharmaceutical companies and medical device manufacturers are turning to radio frequency identification (RFID) to ensure the safety and security of end-users while keeping their products out of the black market.

But industry insiders warn users of the technology that it's not enough to simply deploy RFID tags on products. Just like other integral business systems, companies must understand how the solution fits their product and proceed accordingly.

In that vein, VDC Research predicts that "RFID-based product authentication solutions are poised to drive the next wave of adoption of RFID technology in the near-term." And they offer three trends to watch for.

(1) RFID authentication solutions will be vertical specific. For suppliers hoping to capture a larger share of this market, it's important not to deploy cookie cutter solutions. For success, RFID suppliers must uncover the specific needs of each enterprise and incorporate them in authentication solutions.

(2) RFID is a critical component for our digital world. Companies who don't see the value in RFID-based authentication may look at this solution as just another technology. But VDC Research explains why that's not so, "RFID-enabled product authentication is emerging as a foundational element of highly-automated business processes and more dynamic supply chains."

(3) The next 24-36 months will signal significant changes for RFID authentication. New and existing RFID solutions deployed in the next few years should include authentication technology. And suppliers must understand the need to build awareness and understanding among customers when advocating new and upgraded solutions.

You can find out more in the VDC Research report called Product Authentication & Anti-Counterfeiting: The Next Wave of Adoption for RFID.

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