RFID
Radio Frequency Identification is evolving as a major technology enabler for tracking goods and assets around the world. In particular, RFID technology offers unrivalled opportunities for automated identification of fast-moving objects. Its reception over the last 10 years has been significant in applications such as quality of service measurements, traceability, asset management and transport management.
The main benefits of RFID in the supply chain
Even though RFID applications are still at the early stages of deployment. Many companies running pilot systems have been able to demonstrate some of the significant benefits that RFID promises. There is no doubt that more will be discovered as the industry adopts the technology on a wider scale. The following are examples of what has been identified so far by the different studies and test pilots recently completed within the supply chain.
Advanced Shipping Notices (ASN)
RFID is able to automatically detect when either a pallet or shipment has left the distribution center or warehouse. This will allow to not only generate an electric ASN and notify the recipient, but also to bill clients in real time instead of waiting until the end of the week or month, and doing a batch operation.
Shrinkage
One of the major problems in the supply chain is product loss or shrinkage; which can account for anything from 2 to 5% of stock. The causes may vary from misplaced orders, employee and customer theft or inefficient stock management. RFID with its superior tracking and identification capability will be able to localize where losses are occurring.
Returned Goods
Full visibility and automation can be potentially achieved on returned goods thereby reducing fraud.
Anti-counterfeit 
Illegal duplication and manufacture of high value products, is one of the industries most well known problems. By integrating a tag into items, for example the body of an expensive ladies handbag, RFID has the potential to authenticate a product, and combat the sale of false goods on the black markets.
Supply Chain efficiency
RFID will enable the traceability and reduction in the number of discrepancies between what a supplier invoiced, and what a customer actually received.
Improved stock management
Managing stock is the key priority for many retailers. Studies have shown that on average, products are not on the store shelves 7% of the time due to inefficiencies in stock management, which means of course a potential purchase loss. Implementing RFID at the item level and on shelves will give an automatic way of knowing and managing stock levels. However in order to achieve this on a large scale, it is recognized that tags will have to come down in price to around 5 cents or less, and readers to around 100 USD.
Reduction in labour costs
At Distribution Centres labour accounts for nearly 70% of costs. It is estimated that RFID could reduce this by nearly 30% by removing the need for manual intervention and use of barcodes when loading cases or stocking pallets.