Articles
Track(ing) To The Future: The Impending RFID-Based Inventory Revolution
May 27, 2005
White Paper: Supply-Chain Technology
Radio frequency identification (RFID) is a technology used to track assets throughout the supply chain. Very small RFID transponders or tags containing a unique identifier are placed on assets (pallets, cases, or individual items), and these tags communicate with RFID readers. The RFID readers then associate this unique identifier with information about the product to which the tag is attached. In our view, the next generation of inventory management technology and supply chain efficiency hinges on broader adoption of RFID technology for tracking at the pallet and case level initially, and ultimately at the item level as well.
RFID has the potential to materially change how inventory is managed in the supply chain — in warehouses, in transit, in distribution centers, and on store shelves and check out counters — by improving visibility of that inventory in near real time and, importantly, at an economically feasible cost. RFID is not necessarily new (in fact, some closed-loop systems designed for supply chain use have been operational for years, and other RFID applications such as electronic tolling and access control have been up and running even longer). However, we think the market is on the verge of accelerating its adoption of the technology on a broader scale for supply chain applications for several reasons.
Downloads:White Paper: Supply-Chain Technology

