A survey of 275 manufacturing firms highlights the stark difference in return on investment between mandate-driven vs. process-improvement-driven radio frequency identification (RFID) implementations. This report from ChainLink Research drills deep into the specific process improvements companies are making across the enterprise – in inbound logistics, receiving, the plant floor, shipping, distribution, service and support, asset management and managing the chain of custody.
The research found that RFID spending by manufacturers will more than double from 2005 to 2007. It uncovered a thriving and amazingly rich and diverse set of existing uses of RFID by manufacturers, particularly on the plant floor. The report details the percent of manufacturers using the full range of various applications, providing numerous examples and case studies. Example RFID-enabled processes included:
· Improving freshness in food and pharmaceuticals
· Tracking clinical trial samples
· Tracking tools and tooling location, usage, and service
· Container track and trace
· Bulk load tracking and registration at weighbridge
· Receiving and put-away
· Electronic kanban
· Reverse logistics
· Quality control
· Recall processes
· Batch and lot tracking
· Sequencing and routing of components/work-in-progress on the plant floor
· Manufacturing instructions and recipes
· Product customization, configuration
· Pick, pack, ship
· Shrinkage reduction
· Container security
· Yard management
· Customs and border crossing
· Order verification/reconciliation
· Electronic proof-of-delivery
One surprise, the report found that 67 percent of smaller companies (under $25 million) are implementing or planning to implement RFID. And these smaller firms are the most likely to be driven by process improvement goals (63 percent) or both process improvement and mandates (27 percent), rather than by customer mandates alone (10 percent).
A Webinar on the findings will be presented on Tuesday, January 10. To register or for more details on the research results, go to www.clresearch.com/rfidmfg.htm
ChainLink Research is an RFID and supply chain research organization dedicated to helping executives improve business performance and competitiveness. Its unique approach to actionable research and high-impact decision-making allows their clients to enter new markets, expand market share, and achieve peak performance in their markets.
