RFID in the DOD Strategic Supply Process

... Despite turbulent world and economic conditions, some companies continue to thrive in the global marketplace while others struggle to avoid or emerge from bankruptcy. We believe their secret to success is the successful application and integration of Supply Chain Management (SCM) principles throughout the entire enterprise. Industry leaders effortlessly balanced the iron triangle of SCM – the people, processes, and technology that are key to fueling a high velocity supply chain. The Department of Defense (DoD) lags behind industry in application of SCM principles. We recommend the DoD redefine its SCM enterprise at the DoD level and provide recommendations to guide the department as it transitions from a state of awareness about SCM to building an adaptive supply network in the future ...

... In today’s global economy, in-transit visibility is vital. Just-in-time manufacturing and assembly operations require firms to know – sometimes to the minute – when a key part or component will arrive from a supplier. Technology such as radio frequency identification (RFID) tags and automated identification technology (AIT) can provide this information to all firms in the supply chain. Customers increasingly demand the capability to use the Internet to track their package from the time it is shipped to the time it arrives at their home or office. FedEx provides world-class tracking capabilities for items shipped through its network of airborne and ground-based transportation channels. Wal-Mart’s move to implement passive RFID tags may accelerate the spread of this technology throughout the retail sector given the huge volume of goods moved through Wal-Mart distribution channels. The payback from implementing such programs can be substantial. For example, Savi Technology’s implementation of DoD’s Ammunition AIT project produced a 98% cost avoidance in the inventory/reconciliation of category I ammunition. Scanning labels and reconciling inventories used to take 40 man-hours per building. It now takes 30 minutes per building, yielding a cost avoidance of over $860,000 ...