While the expectation was that RFID would revolutionise the supply chain from end to end, achieving that transformation was an overly ambitious goal. Many hurdles stood in the way of ubiquitous adoption - from the cost of tags and problems with reader accuracy (metals and liquids were the main culprits) to privacy and data integration.
In fact, of the close to 150 Wal-Mart distribution centers, the number of RFID-enabled facilities can be counted on one hand, said Bob Novack, associate professor of supply chain management for Penn State.
"I don't think the Department of Defense is any further along," he told CRM Buyer. "Pilots, for the most part, are still basic slap-and-ship applications at the case level."
Those that have scaled back on their RFID aspirations, however, are now looking at the technology in a more strategic light. Although it may not be ideal for distribution center or shelf-level applications because of signal interference or complexity, for example, RFID is definitely proving to be of some worth in helping businesses manage back-of-the-store inventory, track high-value products (e.g. pharmaceuticals, electronics, etc.), and reduce loss prevention.
