Prominent organizations and retailers, such as Walmart and the US Department of Defense are taking advantage of radio frequency identification, which promises real time tracking of products from the manufacturing floor to the checkout terminal. Despite the typical risks associated with adopting any early-stage technology, the competitive advantage and bottom-line business benefits of RFID are significant to both retailers and suppliers. It can significantly decrease warehouse, distribution, and inventory costs; increase margins; and enhance customer service.
With demand increasing and production costs declining, the tags are expected to reach 5 cents per tag in 2006. Mountains of data : The location of pallets, cases, cartons, totes, and individual products in the supply chain, the activities of picking, packing and shipping, the tracking of expiration dates, and recalls will all produce mountains of real time data. Most organizations are not ready to transmit, store, process, warehouse, and integrate that data with warehouse management, inventory