NATO Saves $10 Million with RFID

Last March, NATO issued a contract to affix RFID tags to its fleet of SeaSparrow missiles, with a goal of reducing maintenance on the units. In January, the first RFID-enabled missile left the manufacturing facility en route to an undisclosed port destination.

Proper maintenance tracking and handling can have a positive impact on missile useful life and warfighter safety by preventing pre-mature failures in the missile systems, for example, which renders them inoperable. For every one percent decrease in missile failures resulting from an RFID solution, the government estimates a savings of up to $10 million.

In a day and age when the government is slashing budget spending, RFID can offer a significant savings. Placing RFID tags on missiles used by the U.S. Navy and by NATO, for example, could save up to $300 million in unneeded maintenance costs a year.

The RFID system will provide NATO with comprehensive tracking of humidity, vibration, temperature, shock and other vital information for the unit, potentially saving NATO millions when it comes to maintenance procedures.