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Sunday, November 06, 2005 

Suppliers and Inventory

Education Learning Management Corp. will develop and operate a Four-Tier Distribution Network



Radio Frequency Identification Device (RFID)

RFID systems consist of a number of components including tags, handheld or stationary readers, data input units and system software. The tags are the backbone of the technology and come in all shapes, sizes and read ranges including thin and flexible "smart labels" which can be laminated between paper or plastic.

RFID creates an automatic way to collect information about a product, place, time or transaction quickly, easily and without human error. It provides a contactless data link, without need for line of sight or concerns about harsh or dirty environments that restrict other auto ID technologies such as bar codes. In addition, RFID is more than just an ID code, it can be used as a data carrier, with information being written to and updated on the tag on the fly.

The idea for Radio Frequency Identification (RFID) technologies has been around for decades, but their application has been held back in part by the expense of the tags, which ranges from just under $.1 to $20. Now the potential cost has dropped to about a nickel, as sponsors of the commercially funded Auto-ID Center at Massachusetts Institute of Technology have figured out ways to produce cheap chips in quantity based on developing standards.

With businesses lining up behind the effort, large-scale production may not be far off. Since the Auto-ID Center was founded three years ago, membership has grown to 67. In addition to the four companies mentioned above, sponsors include Coca-Cola, the Department of Defense, Kraft, Johnson & Johnson, Kroger and Pfizer.

Large retailers such as Wal-Mart will create a cascade of demand for RFID tags and the hardware and software needed to use them if those companies push business partners to adopt the technology for improved supply-chain coordination. We will develop RFID infrastructure to serve the $700B education marketplace.

Depending on the outcome of an upcoming test, Home Depot Inc. says it could eventually put RFID tags on all of the 50,000 products it sells. If that happens, the home-improvement chain envisions asking manufacturers and distributors to join the initiative.

Unilever is conducting a three-phase trial of RFID technology, based on the Auto-ID Center's developing standard, that involves testing the tags on pallets, cases of goods, and eventually individual items.

The Auto-ID Center is slated to publish a complete standard in the second half of next year.

Unilever is working with pallet rental company CHEP International to develop reusable shipping pallets with built-in RFID tags and with RedPrairie Corp. on applications for warehouse management that work with RFID tags.

Like Old Dominion Freight Line Inc. who is using RFID tags on 12,000 pieces of trucking equipment to control inventory in its freight yard, track shipments, and monitor employee productivity.

Application to PATH Roadmaps

RFID technology has application to the Information Technology Roadmap project. Like barcodes, RFID can be useful in supply chain applications for tracking materials and inventory control. Some of the advantages over barcodes include the ability to be read from greater distances, in low light conditions, and without a clear line of sight. Other applications in housing construction are easily imagined.

For example, with the ability to store more data on the chip, it might be possible to provide digital installation instructions, MSDS sheets and product specs with each product. Workers could use a hand-held device to extract this information as needed. If data on the chip could be economically modified prior to shipment to the job site, then individual products could be specifically linked to coordinates on the building plan. This would help prevent installation errors that currently discourage builders from using multiple variations of a product in different locations of a building.

Education Learning Management Corp. continues to research and monitor developments in RFID technology. Both internal and external supply chain improvement opportunities are under consideration. However, at this time, no supplier requirements have been established.

About me

  • I'm Cincinnati Change
  • From Cincinnati, Ohio, United States
  • CINCINNATI CHANGE believes in mixed-use development whereas the poor and moderate income people, in der Nati, will be able to use their assets so as to have a great quality of life for themselves, their family and their children and their children's children along with ours.
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