by: Douglas Ingram

A recent case study was published by Bloomingdale’s and the University of Arkansas RFID Research Center.  The case study

RFID-on-package-in-supply-chain

detailed the use of RFID in one Bloomingdale’s store where it was used to help monitor inventory levels of approximately 10,000 jeans.

The case study found that the system helped to improve inventory accuracy 29% percent while decreasing the labor requirements for inventory significantly.  In fact, the research center has found that with traditional bar code approaches to inventory, approximately 209 items per hour can be counted, whereas with RFID techniques applied, more than 4700 items can be counted per hour.  This creates an effective 97% increases in productivity around the inventory process.

The applications for RFID in today’s modern global supply chain are exciting and could spell great efficiencies, visibility and competitive edge for those companies deploying RFID in their environments.  Today, the promise and vision of RFID is greater than the actual real-world case studies of deployment.  The broader RFID challenges to adoption in a global recessionary environment include:

1. Education for decision makers in the supply chain
2. Vendors and integrators demonstrating hard-dollar savings or heightened revenue through RFID adoption (i.e. more case-studies like the Bloomingdale’s one cited above)
3. More pressure from end-consumers for features realized through RFID implementation (i.e. Wal-Mart’s challenge to its providers)
4. Affordability of RFID components such as labels, readers, hand-held devices, and integration software for already existing enterprise systems.

As these items are addressed and RFID reaches critical mass across the global supply chain the impact on all stakeholders will

Employee Using RFID in Supply Chain (Retail)

be game-changing.  More importantly, the Bloomingdale’s example shows a case study of RFID at the Item Level versus other case studies that have been focused at the case or container level.  Benefactors of item level tracking are numerous but include any enterprise that has high-value inventory tied up in small components or parts.  For example, the service parts industry for technology manufacturers could realize much value through the deployment of RFID including better part visibility and increased service levels.

I look forward to the next 24 months because I believe the global supply chain is set for a broadened adoption of RFID that will deliver value to all supply chain stakeholders.

LINKS:

University of Arkansas – RFID Research *(has page dedicated to the Bloomingdale’s RFID case-study)

MIT – Supply Chain Forum (RFID)

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