An extensive trial of radio frequency identification
technology in a music supply chain has revealed that improving
efficiency will be the main driver for the adoption of RFID in the
UK.
RFID tags, which allow goods to be electronically tracked along the
supply chain, have been touted as a way of removing the need for
checkout staff, cutting crime and slashing inventory levels.
However, a Home Office-sponsored project, which was based on the
music supply chain involving record label EMI, wholesaler Handleman
UK and supermarket chain Asda, has indicated that improved
efficiency will be the initial benefit of RFID.
"The biggest potential benefit the trial identified for us was
supply chain integrity, helping us to identify and reduce the
number of discrepancies over what our suppliers invoice us for and
what we physically receive," said Kate DeFraja, trading loss
prevention manager at Asda.
"The other big benefit will be the automatic updating of the
inventory system as the product enters the back of the store. By
using RFID readers that read multiple tags in a delivery, we can
eliminate the need for manual scanning."
In the trial, CDs were fitted with RFID tags that tracked them
through the supply chain to the consumer, as well as tracking
returns back to the manufacturer.
The report on the trial, entitled CD.id - RFID's Greatest Hit, said
achieving such visibility of assets has the potential to
significantly improve supply chain efficiency and make the physical
movement of goods considerably easier to manage.
Although supply chain efficiency will be the main short-term
benefit of RFID, there is no reason why the more ambitious targets
cannot be achieved over time, said Stuart Dean, RFID project
manager at standards body e.centre, which managed the trial.
"It is entirely conceivable that in five to 10 years' time products
could travel through the supply chain with little or no human
intervention," he said. "The report proves conclusively that there
is a long-term future for RFID and that business is willing to
support its adoption."