I have always thought Radio Frequency Identification (RFID) technology would revolutionize logistics. Well after almost two decades, the RFID revolution may be starting. For many years the question for RFID was it a Catalyst to Boil an Ocean or Make a Cup of Tea? Behind the hype and the promise, the ROI for many RFID projects were at best questionable. It appears now that RFID is turning the corner.
DoD Leadership in RFID Logistics. The US Government has done a good job over the years in helping to enable and commercialize emerging technologies and standards. This has included the internet, software development standards, scanners, wireless, and now RFID. I was involved in a lot of Department of Defense (DoD) RFID logistics projects in the ’90s. Most of these projects had to do with active RFID and web servers to track ocean containers. Over ten years later it looks like the investment that DoD has made in RFID logistics will pay off. A recent set of articles in the Defense Transportation Journal on DoD RFID Logistics provide a great overview of how DoD is enabling maneuver logistics for the warfighters. DoD is definitely leading RFID logistics in the areas of standards, software, RFID infrastructure, and enterprise integration.
Where RFID Fits in With Auto ID Technology. Bar codes and scanners are key Automated Identification Technology (AIT) enablers for managing logistics and supply chains. For decades, supply chain professionals have used bar codes to tag everything from a retail-level item to a shipping box to a pallet, and even trailers and railroad cars. With the advent of active and passive RFID tags, I expect bar codes will slowly be phased out for tracking and tagging everything from boxes of items to ocean containers. Bar codes will continue, at least for now, to be used at the retail item level. The key criteria for using a bar code versus passive RFID versus active RFID tag is cost and functionality required of AIT. Below is how to best leverage bar codes, RFID, and GPS for logistics and supply chains:
- Vehicle Movement – GPS. Track vehicles that move assets using GPS.
- Containers – Active RFID Tags. Track containers real-time in yards and docks using active RFID tags with RF ranges of 300 feet.
- Asset Management – Active and Passive RFID Tags. Manage tool rooms, security items with active or passive RFID based on RF range required and affordability.
- Pallets – Passive RFID Tags. Track pallets using affordable passive RFID tag with 3-15 foot RF range.
- Boxes – Passive RFID Tags or Bar Codes. Track boxes with passive RFID tags or bar codes. Passive RFID tags now are affordable to track boxes with costs of under ten cents a RFID tag.
- Items – Bar Codes. Bar codes are still the best option for tagging individual retail items.
RFID Logistics – Benefits. Below are the reasons why RFID offers so much promise for logistics and supply chains:
- Reduces Clerical Errors. RFID gets the human out of the loop where clerical errors are about eliminated in terms of inventory levels and asset visibility.
- Improves Asset Visibility and Utilization. RFID can give you complete situational awareness. If you know where an asset is, you can use it.
- Increase Efficiency. People no longer need to be always looking for stuff, nor do they have to do inventories by hand. This frees them up to do their real job.
- Improves Decision-Making. RFID give real-time information that enable better decision-making as well as reduces the decision-making cycle.
For more on RFID being a change agent within logistics and supply chains, see posting RFID DASH7 – the Catalyst to Move The Tempest Out of the Teapot.
