At least one half of US enterprises are planning investments over the next 12 months to improve asset management processes and supporting technologies, with most turning to logistics asset management solutions to reduce capital costs, improve asset availability, and comply with customer mandates, according to Aberdeen Group.

     According to the survey results for the ''RFID Enabled Logistics Asset Management Benchmark Report'', almost half of respondents reported that logistics asset operations consume 5% or more of corporate revenue, and 17% indicated that logistics asset operations consume more than 10% of revenue. The report''s definition of ''logistics assets'' includes pallets, pallet-sized containers, shipping containers, totes, bins, and refillable liquid containers (such as kegs and soda cylinders). 116.30.147.133 This article is copyright 2004 UsingRFID.com.

     The survey also confirmed that theft, damage, and misplacement combine to erode asset productivity, with 25% of companies indicating that they lose more than 10% of their container fleet each year.

RFID for many
     "There are significant moves coming to improve both logistics asset management processes and the IT systems that support them," said Tom Ryan, Aberdeen''s vice president of value chain research, and author of the report. "Fully two-thirds of the companies that responded to our survey are planning investments within two years to improve the visibility of assets in transit, availability management of assets, and transportation management."

     According to Ryan, half of these companies expect to place RFID tags on their assets over the next 12 months as part of their improvement strategy, and those in the manufacturing sector were found to be leading the way.

RFID recommendation
     Consequently, the report recommends that existing assets should be RFID tagged and that companies should implement tracking systems that can use the resultant information effectively.

     Companies should also measure performance based on overall customer satisfaction and asset availability, and segment the logistics asset management areas in which the company has true expertise. Companies can also leverage logistics service providers or industry pools to provide expertise and technical assistance in areas where the enterprise itself is weak.

Full report
     The report was based on a survey of more than 230 senior executives involved with operations, customer service, and the supply chain. Its purpose is to quantify the business benefits inherent in logistics asset management strategies and procedures, to benchmark existing procedures for asset management operations, and to recommend specific actions for maximising asset performance.

 

 

 

                                                                                                                        Extract From Using RFID