RFID to Transform Real-Time Business across Industries; SAP Exec Says Technology Has a Big Future Business Impact
Byline: edu h. lopez
It may take awhile for the local market to deploy radio frequency identification (RFID) technology due high cost but the trend is gaining momentum in the US and Europe.
RFID is an automated identification and data collection technology that accelerates business processes and allow more accurate and timely data entry.
RFID tags consist of a chip for holding data and an antenna for communicating the data through the radio waves. A typical RFID system consists of tags, readers and application software.
Collin Lian, head of retail and Auto ID of SAP Asia who recently visited Manila said that RFID has a big future business impact.
RFID is set to transform real-time business across industries with benefits as diverse as revolutionary supply chain effectiveness to preventive maintenance improvements in environmental and physical safety.
"At this point in time, businesses should monitor RFID, plan and build business cases around RFID, identify the best way to approach it and decide when to build up a strategy," said Lian.
Lian advised companies planning to deploy RFID in the near term to begin with a separate technology layer that handles the primary tasks of gathering, filtering and acting on RFID data gathered from multiple readers in the enterprise.
RFID system has varied applications from retail to manufacturing specifically inventory and warehouse management, transportation and logistics, track and trace, demand planning, order fulfillment management, asset tracking and consumer.
It has the ability to significantly improve business processes in consumer products value chain. The deployment of RFID system would have significant benefits for retailers, manufacturers and consumers.
Some of the benefits include the improvement of stock availability by 10 percent, increase sales by 3 to 7 percent due to improved stock availability, increase customer retention, achieve higher profits by 25 to 40 percent due to improve logistics for returns and increased revenues by two percent.
Lian said the system could reduce losses by 50 percent, speed up the pickup and delivery by 10 percent, reduced labor costs, increase warehouse product throughput by 20 percent, reduce spoilage and obsolescence write-offs by 20 percent, reduce bad data costs up to $100 million and lost packages by 98 percent. …