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by Hallie Forcinio, Contributing Editor   | Abstract: | Maximizing the value of radio frequency identification depends on a company's ability to make use of the data the technology can provide, and that requires integrating RFID with other enterprise systems. |
Supply chain RFID applications are ramping up more slowly than expected, but compliance with tagging initiatives at retailers and entities such as the U.S. Department of Defense have demonstrated the technology's potential for tracing and tracking goods. As a result, many manufacturers are adopting RFID internally for asset management tasks. In 2006, roughly 285 million tag-equipped labels were sold, according to a report from IDTechEx, well below analysts' forecasts of 600 million. Modest growth is forecast for 2007, when volumes for supply chain applications are expected to reach 520 million. Despite RFID's slow start, the technology can provide real value, as long as manufacturers know how to use the data it generates. "An RFID system won't really provide value unless it's connected downstream into the enterprise systems used to run the business," says Dean Frew, chief executive officer of Xterprise Inc., a systems integrator and pioneer in RFID service-oriented architecture (SOA) applications and RFID data analytics. [Click to continue] |