|
|
 |
What is RFID?
Radio Frequency ID (RFID) is one of the manufacturing's hottest technologies. Perhaps the single most important driver for the increased interest and development of the RFID industry is due to Wal-Mart and the Department of Defense. Each has mandated that their suppliers use RFID when shipping products to their distribution centers. By using RFID technology pallets and cartons of merchandise can be tracked throughout the supply chain.
Why do companies across many industries need to implement this technology to remain competitive and successful? In tough economic times, all businesses are looking for ways to cut costs. By automating business processes through technologies such as SmartRFID™, companies can reduce labor costs while simultaneously improving productivity and efficiency. |
|
| |
Another adoption driver is the expansion of consumer and regulatory demands that require companies to more accurately track product-handling information. As threats to security continue to loom, regulatory bodies are becoming increasingly stringent in the requirements they place on companies, especially in industries such as food and healthcare. In order to ensure the tightest security and highest standards, companies must know where products are at all times and where they have been in the supply chain. This not only allows for date and lot tracking, but it also simplifies the process in the event of recalls.
|
|
 |
Lower Cost: According to the National Retail Security Survey released by the University of Florida, approximately $5.8 billion worth of inventory was lost in 2001 due to administrative errors alone. As evidenced by the fact that labor comprises approximately 30 percent of supply chain expenditures, one of the easiest ways to drive down costs is to increase operational and labor efficiencies. RFID can further reduce costs by allowing companies to decrease shrinkage.
Increase Revenue: With U.S. retailers losing approximately 3.8 percent of sales per year as a result of out-of-stock inventory, RFID allows companies to capture and track a variety of data on goods. This information aids in the development of accurate inventory forecasts.
Decrease Stock Levels: Because of the speed and accuracy of the solution, orders can be filled in a shorter amount of time, allowing for quicker product availability. Reducing this order cycle time decreases the need for an over abundance of stock.
Reduce Fixed Capital: Companies can better manage fixed capital by tracking assets such as totes, pallets, etc. This reduces the need for replacement due to lost items and cuts back on the amount of redundant equipment.
|
|
|
