Companies Look To RFID To Help Cut Costs

July 13, 2007
Can reduce excess inventory as well as prevent asset loss.

RFID is providing benefits in reducing the need for excess spare parts inventories, managing exceptions and preventing loss or damage to critical assets. This is the conclusion of Aberdeen Group's report, "Where's my stuff?", which was based on a survey of 220 end-users in high-touch manufacturing, aerospace, automotive, textiles and hospitals.

"Reducing loss, reducing time-wasting manual intervention, reducing the time it takes to get from information request to information delivery and resolution, the ability to find and fill process flow gaps with idle equipment, parts and people, and, ultimately, the ability of an organization to structure its pricing to reflect the actual cost of doing business, together represent the value proposition of RFID to the process-intensive industries," said Russ Klein, research director for the Emerging Technology practice at Aberdeen. "In order to realize the potential, an organization must be able to measure its performance at key points in the process, identify waste and be willing to adapt existing processes to take advantage of the business intelligence that these actions deliver."

According to the survey, 38% of enterprises using RFID are doing so to improve costs, safety and reliability of managing work-in-process (WIP).

The survey concludes that for companies to be best-in-class in their application of RFID they need to have co-operation between internal company stakeholders and RFID vendors. Companies also need to make sure that management understands the value monitoring WIP in real time.

For a complimentary copy of the report visit

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