Time Is on RFID's SideBy Joseph C. Panettieri | Print
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The wireless technology may not pay real economic dividends for at least two years. Read why.The RFID bandwagon is shifting into overdrive, but not everyone in manufacturing is jumping aboard.
Radio-frequency identification technology involves tags and readers that track goods through the supply chain, enabling tighter inventory control and real-time product routing to meet ever-changing consumer demands. The tags are tiny radio transponders attached to pallets and cases of packaged goods. Each tag has a unique tracking number (known as an electronic product code, or EPC). The readers receive radio signals from the tags and, if instructed, pass the information to computer networks.
Most manufacturers had moderate to limited interest in RFID until Wal-Mart Stores Inc. early last year bet its supply chain on the emerging technology. Under a mandate from the $244 billion retail chain, Wal-Mart expects its top 100 suppliers to deliver RFID-tagged products by next year.
Still, the road to RFID has plenty of potholes.