SECTOR REPORTS
WARE HOUS E : RF ID
RFID: A Tool For Tracking
Products, Assets And More
With the emergence of real-time data networks, RFID tags provide accurate status reports and can poinpoint inefficiencies in the food supply chain. BY ELLIOT MARAS
E
ver since Dole Foods experienced an E.Coli outbreak that sickened 200 people nearly a decade ago, radio frequency identificatio (RFID) technology has emerged as a promising tool in the food supply chain. Dole Foods launched an RFID tracking initiative in 2006 to improve traceability and product safety. Th company used RFID and GPS to track vegetables from harvest through processing, packaging, and delivery to stores. While RFID began as a tracking tool for inventory and assets, the emergence of real-time networks has since enabled RFID data to deliver insights in areas such as product status reports and inefficiencies in the supply chain. RFID enables faster and more comprehensive views into potential inventory problems, allowing companies to take preemptive action and reduce the need for expedited
freight. As a data capture technology, RFID also promises more accurate inventory tracking, faster inventory picking, reduced out-of-stocks, and less shrinkage. According to the Material Handling Institute’s 2015 annual industry report, logistics companies are using RFID today to achieve near 100 percent accuracy in shipping, receiving, orders, and inventory accuracy, 30 percent faster order processing, and 30 percent reduction in labor costs. While some large players like PepsiCo and Walmart have embraced RFID, the food chain in general has been slow to adopt it, mainly on account of cost. In addition to the deployment cost, many say bar codes, which are pervasive throughout the supply chain, have proven effective in monitoring inventory and asset data. But there are signs that the tide is turning. Heightened safety concerns are causing many players to reconsider RFID due to the improved accuracy it provides for tracking products and assets. The rising omni-channel also creates a greater need for visibility of inventory throughout the supply chain.
RFID tags allow large amounts of data to be captured in real time. Tag costs have declined over the years.
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• FOOD LOGISTICS
The case for RFID has also become stronger in recent years due to increased reliability of RFID systems and a reduction in costs. According to SICK, a Minneapolis, Minn.-based manufacturer of automatic identification solutions, the cost of RFID tags has dropped from $1.00 or more several years ago to less than $0.10 apiece. As RFID becomes more cost justifiable, companies can implement it in stages. A retailer or wholesaler might choose to use RFID for tracking perishable products and continue to rely on bar codes for capturing data on extended shelf life products. “It’s never going to be just RFID,” notes Tom O’Boyle, director of RFID for Barcoding Inc., the Baltimore, Md.-based provider of data capture solutions. “There will be a combination of data collection methods.”
PepsiCo gets better data on assets Last year, PepsiCo’s North American beverage unit purchased 200,000 Rehrig Pacific shells equipped with RFID tags and tested them at seven plants, according to a Rehrig Pacific white paper. This allowed the company to get reliable data on their assets and develop an improvement plan. PepsiCo trained drivers to understand that tracking shells is a part of their responsibilities and to make sure that what goes out comes back. The company also educated grocers to be good stewards of assets – from proper storage of empties to being more aware of who’s picking them up. Using both RFID and GPS tracking on even a test scale provides reporting, visibility and actionable items that can be leveraged in the fight to control losses. Recovwww.foodlogistics.com
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