Supply Chain RFID: How It Works and Why It Pays

Radio frequency identification (RFID) isone of the most promising and anticipated technologies in recent years.Magazinearticles, television shows, analyst papers and the like are frequentlytrumpeting the potential benefits to users of RFID. This white paper will helpyou to understand what RFID is, how it works, describe the current standard andcompliance environment and some considerations to make sure that you have asuccessful implementation and get the most from your investment. The stakes forRFID implementations are high – for both expenditures and benefits. Armingyourself with a good understanding of the technology and important considerationscan ensure that the decisions that you make minimize any missteps and maximizeyour experience.

Manufacturers, retailers, logisticsproviders and government agencies are making unprecedented use of RFIDtechnology to track, secure and manage items from the time they are raw materialsthrough the entire life of the product. Manufacturers can especially benefitfrom RFID because the technology can make internal processes more efficient andimprove supply chain responsiveness—for example, early RFID adopters in theconsumer goods industry reduced supply chain costs between 3 and 5 percent andgrew revenue between 2 and 7 percent because of the added visibility RFIDprovided, according to a study by AMR Research.

Many drivers have seen RFID in action atautomatic toll collection stations used at bridges, tunnels and turnpikes. Inbusiness, RFID will be commonly used to identify pallets, containers, vehicles,tools and other assets, monitor inventory, and route materials throughproduction processes.

RFID can provide immediate and tangiblebenefits throughout the supply chain. Organizations who take the time tounderstand the technology’s capabilities and limitations can increase their inventoryvisibility while streamlining their operations.


Supply Chain RFID How It Works and Why It Pays.pdf
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