Item-level intelligence requirements spur the growth of RFID across sectors such as industrial, manufacturing, retail, transportation, security, healthcare and consumer applications. RFID has quietly crossed the chasm exhibiting a stable - yet still innovative - market. So what will drive the market in 2015?
The University of Southern California housing office knew its housing facilities, on and off campus, had upwards of 60,000 pieces of furniture and appliances. But until the student housing office deployed a radio frequency identification system, tracking which items were at what locations, as well as which were broken, missing or due for replacement, required exhaustive manual inventories. Those inventory counts, typically conducted during summers, required the hiring of temporary workers and many hours of labor to catalog what was where.
RFID retail inventory management can deliver benefits for most apparel retailers now. The basic handheld solution is not hard to understand, delivers real ROI and has a relatively low investment hurdle. Yes, employee training and compliance is a headache, but this is true for many jobs in retail, and it does not change the fact that significant sales uplift is not only possible, but typical.
Taiwan's GuoGuang Opera Co. has deployed an RFID system from EPC Solutions Taiwan to help track the locations and distribution of thousands of costumes and accessories stored within its warehouse.
The focus of RFID in the supply chain has shifted from case tagging to item tagging, says Ann Grackin, CEO of ChainLink Research. Grackin explains why this is so and details other areas of the supply chain where RFID is being embraced.
In recent years, a growing number of retail RFID use cases have clearly demonstrated the benefits of being able to track inventory at the item level, leading to better shelf replenishment and fewer out of stocks. Many retailers quantify the benefits of reducing out of stocks not just at the item level (potential lost sales) but at the transaction level, since retailers closely track the number of items that comprise the average transaction (e.g. 3.6 items/sale). Using that example, an out-of-stock item (especially in a core category such as denim) could result in lost sales of an additional 2.6 items that were to be purchased with it.
For the past four years, Julio Cesar Lestido S.A., the official Uruguayan importer of cars and trucks manufactured by the Volkswagen Group, has been employing passive ultrahigh-frequency RFID tags to track the metal tools it uses to maintain vehicles. The company says that it is now developing a plan to utilize the technology to record each vehicle's life history, including its date of import and sales information, as well as all maintenance provided.
The North Carolina Department of Transportation (NCDOT) is deploying a radio frequency identification technology that enables its own laboratory testing of samples from job sites, as well as inspections of precast concrete materials at the sites of suppliers, to be captured and then managed electronically.
Deere-Hitachi Construction Machinery Corp. is employing AeroScout Industrial Wi-Fi radio frequency identification tags to track the assembly of construction machinery at its facility in Kernersville, N.C.
U.K. retailer John Lewis is preparing to launch an RFID-enabled pilot at its flagship store in London by early next month that will allow shoppers to create an image of a specific chair or sofa with the fabric covering of their choice, using toy-size pieces of furniture and swatches of fabric.