RFID State Of The Art — Technology And Executive Overview

The promise of Radio Frequency Indentification (RFID) inventory control is best understood by reflecting on how we have been controlling inventory with bar codes over the past fifteen years. Bar code technology in use today requires that every case and pallet be scanned for all inventory functions, such as receiving, moving, shipping, etc. Thus the labor and process time involved in bar code based inventory control becomes the bottleneck to further streamlining of the supply chain.

In addition to the cost of the labor and lack of ‘real time' reporting the potential for error and theft in the process is high. As successful as bar code technology has been, RFID provides a better method that eliminates the requirement for ‘line of sight' scanning. RFID utilizes labels that have embedded RFID transponders in them (smart tags). In addition strategically placed readers are used which automatically energize the tags which reflect back their encoded data so that inventory functions automatically occur. The door can also be closed on theft and errors via intelligent application software. Other benefits occur due to the fact that RFID tags become a mini database of information regarding the inventory life cycle, so issues like traceability and expiration dates can be more accurately tracked or estimated.

Automating the ‘line of sight' scanning function will streamline inventory control in your warehouse and along the supply chain to a near perfect level. The benefits are huge and the entire inventory process including store shelves will be automated at some time in the future.

Innovative organizations with vision such as Walmart, Target, Best Buy, the Department of Defense and others are taking the initiative to get the technology rolling. Some believe it's a bit heavy handed…but when you look at the benefits that your company will reap from this technology we think you will agree it's more than worth the effort.