September 20, 2005
RFID adoption
RFID promises to benefit everyone who is a part of the supply-chain process, from the grower or manufacturer to the final user. RFID can be used to ascertain the shipment details down to the case used for a given item; they can help in matching the item to the pallet or the vehicle; they enable accurate forecasting as they provide real-time sales information; lowers instances of pilferage and tampering, etc. RFID is particularly useful in providing real-time information about perishable items. It delivers data that can be combined with information such as sales velocity, shipping history, etc. This helps in aligning the supply chain to the demands in a more efficient and cost-effective manner.
Currently, RFID implementation in several companies is mandate driven. Such implementations, although cost-effective, may not be able to deliver all the benefits associated with RFID. Even though, there is still some time before the promise of exhaustive item- level tagging can be fully realized, companies such as the brewery Scottish and Newcastle is already registering savings to the tune of $25 million per year by tagging the beer kegs. Upon adopting RFID, Marks and Spencer reported close to an 80% reduction in the time that was required to read the bar codes on the trays and roll cages of food. Wal-Mart expects to save more than $ 1 billion annually by implementing RFID to speed up inventory handling and processing and minimizing human intervention.
RFID also has the potential to bring about an improvement in business practices, keeping this in mind; the FDA recommends that RFID be incorporated in the pharmaceutical industry to increase security. It is likely that the various FDA recommendations will take the form of mandates very soon. rfidjournal.com reports:
Goods with a limited shelf life can be automatically monitored so older product can be rotated to the shelf front before expiration. In addition, through the use of sophisticated tags, environmental conditions during shipment can be monitored and tracked, increasing the probability that out-of-compliance conditions can be identified and reduced.
Read More: Levels of RFID Maturity, Part 1
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