Making the case for the value of RFID technology to retailers, manufacturers and even IT suppliers (who are poised to profit handsomely from its adoption) is becoming easier by the day.
The mandates of retail chains such as Walmart, METRO Group, Target, and Tesco that their suppliers meet pallet- and case-level tagging requirements over the next few years have legitimized the potential benefits of RFID technology for supply chains and other internal business processes in the eyes of many IT professionals. Additional mandates and initiatives by the US Department of Defense to its contractors, Airbus and Boeing to their suppliers, and the Food and Drug Administration (FDA) to pharmaceutical makers have further galvanized interest.
Although retailers have taken the lead in promoting widespread adoption, even manufacturers and retail chains that are not linked to any of these organizations have begun exploring how to optimize their own supply chains and internal business processes. With more accurate, real-time data at the pallet and case level, manufacturers and retailers can track and verify shipments more efficiently and smoothly, and also eliminate the waste of missing, stolen and incorrectly assigned goods.
Automation of the auditing process also reduces labor costs. Analysts have predicted that if the use of RFID becomes widespread, retailers could significantly reduce standing inventories, warehouse labor and product losses. Although even these companies are moving cautiously and are still uncertain about the ultimate ROI of current-generation implementations, the above-mentioned pilot projects and other less heralded ones have highlighted potential benefits for businesses in these areas.
RFID Journal 