Issue #135 | Feb. 22, 2008 | by Dave Eagleson
If you break down what RFID is and does, it is a way – through systems – to capture data from which decisions can be made.
In the concept of “Visibility equals Value,” the ‘Visibility’ means the capture of the data. This visibility can now be deployed in places only dreamed about through traditional technologies, such as barcodes or a manual count. Once you have the added visibility, you can now make informed and value based judgments as to actions to drive value.
The key to getting the most from your RFID as a buyer is the same whether you are looking for supply chain optimization or within your four walls. The goal is always visibility and velocity – through accurate, timely data – from which plans can be made and executed.
In a project with The Kennedy Space Center, RFID created visibility by enabling the tracking of key parts, components and tools critical to the operation. For Kennedy, the value is in knowing that when something is needed, it can quickly be found. The cost of a delay of any sort is tremendous and can add up to millions if it comes at the wrong time.
Consider all the questions answered by better visibility- Do I need to order more?
- Is the truck here?
- Have I gotten all the items I expected?
- What is my current inventory position?
- Where are my key assets?
These are just the start of the many questions that an RFID enabled solution can answer. Take nothing off the table while you are planning and deciding if this makes sense for you. With the ability to consider variables that were unknown variables before, it is easy to overlook the value a system can create. To make RFID work you need to think outside the box. It is not a replacement technology, it is an enhanced way of managing, operating, building and/or utilizing what you already have, but in a more informed, more exact manner. Through RFID solutions you can now automatically capture that data and decide on the appropriate next steps. It becomes the fuel that drives the supply chain engine.
For example in manufacturing not tracking a key part or component could cause the operation to stop, so the value of visibility can be measured and quantified. In an emergency room the ability to track an asset can truly be a life or death situation, making the system indispensable. Asset tracking becomes more and more critical as you determine the cost associated with
not knowing where something is.
This same equation is true across the entire business and government spectrum. The better picture you have of your process and/or issue, the quicker you can act, plan and manage.
The best way to explain this would be through examples of installations we have deployed. First would be a solution we deployed for a major aerospace concern to track their sealants, which are kept in a frozen state. Until we created our patent pending SmartFreezer for them, the only way they could truly track their sealant was a manual count. Now the visibility an RFID system provides is constant; they know the type of sealant, the shelf life, and the use patterns.
The value was the decrease in expired material; the labor savings of eliminating manual inventories; as well as the right-sizing of the ordering and consumption. It was estimated more than a million dollars is saved; and they had an ROI in less than six months.
But keep in mind: these solutions are not merely limited to manufacturing, RFID has value at the local, state and federal government level as well. Case in point is our recently deployed system called SecureVote. This system highlight how important visibility can be is in any supply chain, which became evident in our recent work with Alameda County, Calif., on tracking key hardware components used in the voting process. If you look at the process of deploying voting equipment, you realize that in one 48-hour effort an entire system must be deployed, used and returned with 100% accuracy.
This process creates incredible challenges, the least of which is there is zero flexibility as to the timing of the vote. There is zero margin for error – it must be done right the first time; and the results of the effort are critical to the success of the overall process/operation.
By tracking and managing critical voting components through a passive RFID tagging system, Alameda has less reliance on manual labor and redundancy, also creating a more secured process. RFID readers can scan through the bags, reading the uniquely identified assets that only have value when matched to the Alameda secured database, creating a layer of security.
This allows for checks and re-checks of the items throughout the process automatically, without opening or handling them until they are securely back for final count. This is one of the most rapid and critical processes, that is played out in any election across the entire world.
In closing, the above points and examples are merely a way to illustrate that RFID is a tool that, when developed and deployed, can create a visibility picture that enables the user to make a more informed and timely decision. Where and how to deploy it is most effective when you first identify areas of need and points within your supply chain and/or operation where added visibility will in fact create the necessary value.
Visibility + Velocity = Value
Dave Eagleson is Senior VP of Sales & Marketing at RFID Global Solution.
