As the value and pace of the RFID market increases, companies must explore the technology''s value beyond simply meeting retailer supply chain mandates or using it as a direct bar code replacement, according to research firm The Yankee Group, which forecasts heavy investment in the near future.

     Consumer goods manufacturers, which are expected to spend an average of US$6.9 million each this year, must now put their return on investment into perspective by looking beyond generic benefits, according to the Yankee Group''s new research note, ''Seven Things Suppliers of Wal-Mart and Large Buyers Should Do About EPC RFID''. 116.30.147.133 This article is copyright 2004 UsingRFID.com.

Easy benefit
     "RFID deployed within a company''s internal supply chain operation provides a wealth of information about inventory dwell time and movement. Enterprises need to identify what they can improve and how RFID can help them streamline processes and improve material flow within and between their facilities," said Michael Dominy, Yankee Group''s director of enterprise services.

     Dominy says that, while many companies tend to focus solely on the cost of incorporating RFID technology into their supply chain, it takes much more effort to identify how RFID can drive business benefits. Supply-chain professionals will need to be creative and understand how to drive inventory levels down further still, and how to streamline processes and inventory flow using RFID within their internal and extended supply chains.

Starting point
     The Yankee Group recommends that those organisations still debating the merits of the technology should start using it, but with a manageable project that is limited in scope and complexity. Effectively, this means not starting with the company''s biggest or most difficult supply chain problems. Consequently, Dominy suggests that the initial project should represent an internal supply chain issue that can be solved without substantial systems integration.

 

 

 

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