Any discussion of radio frequency identification (RFID) really can’t get started without asking an obvious question: Why do we need RFID? Even more to the point, if bar code and other automatic identification technologies have added so much to improve the efficiencies of data accuracy and real-time information acquisition, why must we turn to yet another technology?
When considering the automatic identification needs of the supply chain, there are numerous reasons we’re heading towards RFID. But here is one of the key reasons: According to Deloitte Consulting, supply chain information inefficiencies are the cause of an estimated $40 billion in lost sales, or 3.5 percent of total sales revenues.