May 04, 2006
DoD immensely benefited from RFID
The US Department of Defence is reaping the benefits form the trial use of RFID technology in its operations. The Department of Defence(DOD) has suggested a number of instances to make it clear. The US Marine deputed in Iraq has become successful in their operation due to large scale implication of RFID technology in various developmental works. The marines using data from RFID tags attached to their supplies reach them in time. Shipments are tagged in America and read in Iraq. The soldiers can easily notice where requested supplies are in DOD supply chain.
The RFID in Marine supply has reduced the cost of inventory value from $127 to $70million. DOD has achieved this by reducing unnecessary reordering when the supplies have been delayed. The military organization is able to keep an accurate report on the supplies. Additional benefits have also been recorded. Average delivery times have dropped from 28 days to 16 days, while the supply backlog of 92,000 shipments has fallen to 11,000.
The potential benefits for the DOD across its supply chain are expected to be significant. Annually, the department spends a total of $120 billions for logistics, including $42 million for supplies. It manages around $80 billion worth of inventory and $700 billion in assets. It is not surprisingly that the US DOD is going to invest more on RFID technology.
Via: [RFID Journal]
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