Solutions News - Analysts agree benefits of RFID in supply chain

Radio Frequency Identification (RFID) tracking was the main topic of conversation at the Forrester Research executive strategy conference in Boston, US, last week.

Keynote speakers at the event extolled the benefits of the technology in improving supply chains, and said that the long-awaited benefits of enterprise resource planning (ERP) software could soon become reality.

The ability to track objects in real-time would close the information gap that exists between technology and the physical supply chain, one speaker said.

Several manufacturers were at the event, and all said they were committed to finding out how RFID could be used. Bathroom products manufacturer Procter & Gamble said it was working on tagging pilots at item level with a number of retailers to measure how this improves on-shelf availability. Tyre maker Michelin said it was also looking at ways of embedding RFID chips, to track tyre mileage and ease the recall of defective products.

However, pundits at the conference warned that RFID could have a serious impact on the human element of the supply chain. One analyst said that if retailers were to get the full benefits of RFID, the ability to see glitches more easily would mean workers would have to rely on their own initiative to correct mistakes, instead of waiting for managerial decisions.