Page 12 - Logistics News July 2019

Thought Leadership
Achieving transformational
benefi ts with RFID
Companies need to think about radio frequency identification (RFID) as more than
just a technology for tracking lost tools or parts bins.
I BELIEVE radio frequency technology is as
transformational as computers and the internet
have been. Unfortunately, many companies view
RFID as simply a technology for tracking tools,
parts bins or work-in-process (WIP). It certainly
can do these tasks, but looking at the technology
so narrowly would be akin to using your fi rm’s
computers only for writing reports or maintaining
accounting ledgers.
RFID has the potential to do so much more. So
how should companies think of it? They should
view RFID as a transformational technology that
can be deployed as part of their infrastructure
– that is, part of every department – in order to
enhance their strategic advantage.
If, for example, you are a low-cost producer
in your industry, you should look at RFID as
infrastructure that can be deployed across your
supply chain, production facilities, offi ces in ways
that take cost out of the system and enhance your
ability to compete on price. If your company is a
high-end retailer that competes on its ability to
serve and impress customers at your stores, then
you should look at ways to use RFID throughout
your organisation to deliver the highest quality
service and greatest customer experience.
I don’t advocate going out and deploying
RFID everywhere all at once. I always encourage
companies to have a vision for what their fi rm
will be like when RFID is used everywhere (like
computers and the internet are). However, I advise
them to deploy it in stages, with each project
delivering a measurable return on investment or
strategic benefi t.
To do this, companies need to educate senior
managers about RFID and what it can do. Going
to events and hearing how other companies in
your industry are employing the technology is
important. Reading up on advances in RFID, as
well as case studies, is critical. Visiting university
RFID labs is valuable. And being part of the
10
By Mark Roberti, Editor RFID Journal
community and sharing your ideas can lead to
unexpected revelations about how to use RFID in
new and innovative ways that can improve your
company’s market position and bottom line.
Once management understands RFID’s
potential, create a cross-functional team that
can develop a vision for how the technology can
be used to enhance your company’s strategic
advantage. For example, your vision might be, “We
are going to use RFID to deliver just-in-time to our
manufacturing customers and increase our value
to them.”
That would require you to track work-in-
process, fi nished inventory and, eventually,
deliveries at and to your facilities, so that you
know where parts or raw materials are located
in near-real time. You might start with tracking
WIP and give your customers visibility into the
production of goods bound for their facilities.
You might follow that with tracking fi nished
inventory and auditing every shipment via RFID
to ensure there are never any shipping errors that
might negatively impact your customers. Once
these projects are complete, you might require
your suppliers to tag shipments and send you an
advance shipping notice so that you have visibility
into what is arriving at your facility and can deal
with mis-shipments or delays before they aff ect
your customers.
This infrastructure might be expanded to track
parts, sub-assemblies, tools, manuals and other
items at your factory. Eventually, you might use
RFID in your offi ces to track laptops, fi le folders
and other items to enhance productivity. In this
way, you are leveraging RFID in a way that is truly
transformational. You are becoming a truly digital
company, and the data collected can be analysed
to achieve unexpected benefi ts. Eventually, AI
will help you perfect your production processes
and achieve true coordination with supply chain
partners. •
July 2019 | Logistics News