RFID Benefit Potential Estimates ...

Commentary - Radio Frequency Identification (RFID Technologies: Potential for the Department of Defense)

CW4 Pablo A. Brown writes ...

... "Business practices in the private sector demonstrate the impact of using RFID. A study by Accenture, a global consulting firm, concluded that RFID could lower inventories by at least 5 percent or as much as 30 percent. In one practical application, Procter & Gamble Company plans to use RFID technology to monitor its tagged cases. Procter & Gamble hopes this will reduce its inventory by 40 percent. Using Accenture's lower 5 percent estimate, the DLA can reasonably assume a savings of $4 billion to its $80.5 billion wholesale inventory. The DLA might save as much as $24 billion if it can reduce the inventory it carries by 30 percent. If the DLA could achieve Procter & Gamble's 40 percent reduction, this would save the DLA an estimated $32 billion. Clearly, the DOD stands to benefit tremendously from the use of RFID." ...

CW4 Pablo A. Brown wrote his article on the potential of Radio Frequency Identification (RFID) Technologies for the Department of Defense while working in the Army’s Training With Industry program at the Logistics Management Institute in McLean, VA.