RFID technology will ultimately deliver its most significant benefit through improved inventory management in the supply chain, according to the results of a new web poll released today by the Computing Technology Industry Association (CompTIA).

     Better inventory management was cited as the key benefit of RFID by almost one in three respondents (29.2%) of almost 500 participants in the web-based poll. 116.30.147.133 This article is copyright 2004 UsingRFID.com.

     "Successful companies have recognised the importance of better inventory management," noted David Sommer, vice president of electronic commerce for CompTIA. "It is a major source of competitive advantage for a company to know what it has in inventory, and where."

     CompTIA, through its Electronics Industry Data Exchange (EIDX) group, is also engaged in a number of RFID initiatives for the computer, electronics and information technology (IT) industries. One of these initiatives involves a working group that aims to develop supply chain business process models that incorporate RFID and identify potential ROI at various points along the supply chain. Other anticipated benefits of RFID, according to the poll, include:

 

Reduced product tampering, theft and counterfeiting (12.3%);
 
Improved collaborative planning with supply chain partners (11.9%);
 
Easier product tracking and recalls (9.0%);
 
Automatic replenishment of parts and products (7.2%);
 
Reduced invoice reconciliation and labour costs on the receiving dock (4.5%).

     Less than one in five respondents (19.5%) said RFID would have little or no impact and that the promised benefits of the technology were being over-hyped.

     So, while there are still obstacles to overcome before the full benefits of RFID are realised, Sommer cautioned that failure to recognise how RFID will impact business operations could negatively impact a company''s ability to compete in the wider marketplace, adding that "If your customers are mandating RFID usage, you must be ready to meet their requirements or risk losing them."

 

 

 

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