RFID (radio frequency identification) is a technology that uses microchips to identify an object, animal or person. The technology has been in use since the 1970s, although it is relatively new to the commercial market, as it was previously too expensive. There are many examples of RFID technology currently in use, including the EZ-pass transponder that you may have in your vehicle.
RFID technology provides a more efficient way of identifying and tracking products as they move through the supply chain. The technology is becoming increasingly important to managers who wish to increase the efficiency -- and therefore the bottom line -- of their companies. Specifically, as products make their way through the supply chain, the RFID chips automatically capture product data, which then becomes available in real time to other supply chain processes, such as Advanced Shipping Notice (ASN), stock management and billing.
Get veteran IT expert Jim Connolly's take on the current status of RFID and ERP for SAP
Read more about RFID applications in the supply chain:
Supply chain management for really smart people
Find out how SAP is incorporating RFID technology and supply chain management (SCM):
RFID boost for SAP SCM
Some say RFID technology is the next big thing:
IT market hears RFID message loud and clear
HOW TO BUILD A BUSINESS CASE FOR RFID
Getting started: What is RFID?
Getting started: RFID evaluation: Can RFID technology work for you?
Getting started: Determining the benefits of RFID for your business
Getting started: Selecting the right RFID software vendor for your business needs
Building the case: SAP and RFID: Incorporating RFID in ERP software
Building the case: What other companies are implementing RFID technology?
Building the case: What factors are holding up RFID adoption?
Building the case: How do I calculate ROI for RFID?
This was first published in May 2006