Prominent organizations and retailers, such as Walmart and the US Department of Defense are taking advantage of radio frequency identification, which promises real time tracking of products from the manufacturing floor to the checkout terminal. Despite the typical risks associated with adopting any early-stage technology, the competitive advantage and bottom-line business benefits of RFID are significant to both retailers and suppliers. It can significantly decrease warehouse, distribution, and inventory costs; increase margins; and enhance customer service.
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RFID: Rewards, Risk, and ROI Introduction The promise of radio frequency identification (RFID) is every supply chain manager''s dream—real time tracking of every single product, from manufacture to checkout. Compared to universal product code (UPC) bar coding, which RFID promises to replace, RFID proactively transmits information, eliminating the manual point-and-read operations needed with bar coding. This enhanced visibility could significantly decrease warehouse, distribution, and inventory costs;