Over the last few years the cost declines of Radio Frequency Identification (RFID) technology, combined with improvements in sensitivity, range and durability, have enabled widespread RFID use in the logistical planning and operation of supply chain processes in the manufacturing, distribution and retail industries, and helped move its adoption into services such as security and access control, tracking, and monitoring/management.An RFID tag consists of a microchip and an antenna, often in the form of a tiny ribbon that can in turn be packaged into many forms, such as a label, or imbedded in between the cardboard layers in a carton.On the microchip is stored information about the product that the tag is affixed to, which can then be "read" when the tag passes within proximity of an RFID "reader," with that information being relayed back to a computer system that updates the location status of the associated product.This enables great efficiencies and cost reductions with respect to inventory management and control in a physical product environment, and enables innovative applications in locating and tracking people and assets in a services environment.
Up until recently, though, the adoption of such technology has been somewhat scatter-shot; some companies use it, some don't; within any given company that does, it may be used for some types of supply chain operations but not others; or is used only with some types of customers - its adoption has been a relatively immature "hit-or-miss."
This environment changed dramatically last June when Wal-Mart Stores announced that it would require its top 100 suppliers to put RFID tags on shipping crates and pallets by January 1st 2005, and earlier this month announced that it will expand its RFID efforts to its nex ...