RFID Technology: Today the technology of RFID promises to overcome major current limitations of POS data by providing real time data and vastly greater intelligence from many more nodes in the supply chain at economical rates. Fundamentally, RFID is the UPC code with significant brains and signals, which provide intelligent visibility of inventory for tracking and decision making in an ever-changing marketplace.
RFID initiatives have largely centered on pallet and case tracking (e.g. Wal-Mart) and government (e.g. U.S. Department of Defense) mandates. The pharmaceutical industry, on the other hand, has deployed it at the item level. Wal-Mart has been able to reduce out-of-stocks on some items by 32 percent by having its suppliers adopt RFID. P&G used RFID to track Fusion razors going into store shelves in 400 retail locations and was able to get the razors 11 days faster than normal for historically the product had not been moved to the sales floor in a timely manner at launches.
The supply chain revolution will truly come of age when chief executives of companies are championing supply chain superiority and are promoting collaboration with customers and suppliers—and when sales and marketing executives are altering their supply chains to be consumer-centric. Supply chain management has become everyone’s business.