Being able to quickly locate and keep track of client files is a major challenge for law firms and other professional services enterprises. Current RFID file-tracking solutions promise lower file management costs and facilitate secure, simplified tracking and retrieval of large volumes of paper records.

Beyond Barcodes

In enterprises dealing with thousands upon thousands of paper files, it is not uncommon to spend a great deal of time locating and retrieving files. As an example, consider the typical law office where hundreds or thousands of paper files may travel from a central filing system, to secretaries, to the desk of any number of lawyers and paralegals. Lost and misplaced files are also commonplace. Locating files creates significant costs for the enterprise and, in the case of lost information, can also create legal liabilities.

Improved file tracking can lower file-management costs, increase productivity, and decrease potential legal liabilities. RFID systems improve upon the familiar barcode systems that are used for tracking paper files in office environments. Implementing RFID file tracking will be simplified if the enterprise already has a barcode file-tracking system and established file database.

Although they can be effective, barcodes are limited in terms of their efficiency. Two major drawbacks are:

• Files (and barcodes) need to be visible in order to scan them. This means that "lost" files are truly lost until someone physically sees them. Files hidden between other files or sheets of paper may go unaccounted for. In addition, files with torn, covered, or otherwise damaged barcodes are potentially irretrievable.
• Files must be individually scanned. In instances where large stacks or boxes of files are being moved, this can become a laborious task.

Contrast the above scenario with an RFID file-tracking system. Using RFID, tagged files are stored in a room where RFID readers are used to automatically check-in or check-out files on entry and exit. If the user has an RFID-enabled badge as well, then the documents can be associated with the person entering or leaving the file room. File movement can be tracked through the building using readers at entrances or exits, or using desktop readers located in each employee's office. Missing files can be easily located using handheld readers that scan through boxes and across multiple stacks of files with no line-of-sight requirements.

Building an RFID File-Tracking System

Enterprises looking to implement an RFID file-tracking solution will require the following three components:

1. RFID tags that are unique to each paper file. File-tracking systems use passive RFID tags in a sticker form. Tags are placed on the front of files and contain a file identifier (e.g. The Pensky File, Deposition), the location where the file is to be stored (e.g. File Room, Cabinet C), security information to validate the tag, and authentication information that might be used to prevent unauthorized individuals from removing the file from the office. Information can be written to the tag using in-house RFID writing/verification technology or the enterprise can use pre-written tags that are then associated with detailed data from a database. In addition, each employee can be given a personal identification tag to use when checking files in and out. RFID can also be implemented at the document level; however, this will be an expensive undertaking. If document-level tracking is required, barcodes will be more cost-effective.
2. RFID readers located in strategic places around the office. RFID readers come in different formats for different purposes:
   • Large long-range readers can be used to track the movement of files through entrances/exits. For example, a long-range reader may be placed at the entrance to the main filing room for automatic check-in/check-out, or at the main exit in order to verify that no files are leaving the building without authorization. In this scenario, multiple readers separated by a few feet will be needed in order to determine whether a document is coming or going.
   • Desktop readers can be used to check-in/check-out individual files or stacks of files. Every lawyer, paralegal, and secretary should be equipped with a desktop reader. In addition, each filing cabinet may need to be equipped with a reader to automatically detect the removal and replacement of tagged files (assuming a long-range reader is not being used). The range on this type of desktop reader is generally only six to 12 inches.
   • Portable handheld readers allow users to quickly and easily search a filing cabinet or office to locate a file. Readers come equipped with display screens that allow users to enter file information for a search. Once file information is entered into to the reader, it is simply a matter of waving the device over a drawer, desk, or stack of files.
3. Software that facilitates information search and two-way communication between the file-tracking system and the file database. In some cases, the vendor supplying the software will be different than the vendor supplying the hardware components. Look for vendors that partner with other providers to offer a complete, turnkey solution.

Although some libraries have been using RFID to track books for some time now, file tracking is still a fairly new use of RFID technology in the enterprise. Despite this, there are a number of players in this space. In addition to 3M's leading RFID Tracking Solutions, other offerings to consider include FileMaster from Checkpoint Systems, RFID File Tracking from Dynasys, and RFID Tracking Solutions from FileTrail. When evaluating vendors, use McLean Report's "RFID Vendor Checklist" as a starting point to compare and contrast key RFID requirements.

Recommendations

1. Evaluate the business case for RFID. Enabling the entire filing system with RFID is a costly endeavor. RFID tags can cost anywhere from 25 to 50 cents each (compared to pennies for barcodes), and a complete RFID implementation can reach as much as $25,000 to $200,000, plus annual maintenance expenses of up to 10% of the purchase cost. In addition to training and integration with case management systems, escalating factors include:
   • The number of files being tracked.
   • The number of file-storing locations.
   • The number of lawyers and paralegals employed.
   • The number of desktop readers required.
   • The availability of power and networking connections (wired or wireless) at reader locations.
   • The network capacity available to carry RFID data between readers and the database.
   Conversely, a well-organized barcode system can also yield file-management improvements at a fraction of the cost.
2. Vet RFID performance issues. No system is perfect. A technical challenge in RFID tracking is being able to distinguish and separately read multiple labels that may be stacked in close proximity. When evaluating vendors, be sure to request a demonstration of how well readers identify densely stacked labels, as well as inquire about the number of documents that can be read simultaneously. Also, ask to test the range of handheld readers since these are often only able to detect tags that are within a few inches.
3. Don't be limited by virus and privacy worries. RFID "naysayers" often comment on the possibility of RFID viruses and breaches of privacy. In reality, the threat of fixed-data format passive RFID tags being attacked by viruses is virtually non-existent. For more on this topic, read the McLean Report note "Wholesale/Retail: RFID Security Concerns Overblown." Privacy concerns are also not an issue in this application of RFID since no sensitive data is stored on the tags, just the file identification information and its location. No client, employee, or case information is transmitted. The security of the network is the primary concern when adopting an RFID application.
4. Focus on data management. Enterprises will have to create a file database that contains each item's identification and location. As new files are added, these will have to be added to the system. A complete file inventory should be taken periodically to ensure that information is accurate and all files are accounted for. Also, as enterprises evaluate vendors they should seek integration with existing case management software.
5. Take a staged approach. It is unrealistic to migrate to an RFID system overnight. If the enterprise is already using a barcode system, start by maintaining this system and use the RFID for new files going forward.

Bottom Line

RFID file-tracking systems can be a great boon for any enterprise that deals with large numbers of constantly moving paper files. These solutions reduce the administrative cost of locating and retrieving files and reduce the liability associated with lost or misplaced documents.