Still on the sidelines when it comes to implementing RFID in your supply chain? You’re not alone. But ongoing technological advances might mean now’s a good time to decide if you’re ready to get in the game.

Many businesses more suited to the use of RFID (Radio Frequency Identification) have already gotten “in the game.” But a greater number of supply chain pros have waited patiently for technology to advance and for prices to drop.

If you considered RFID in the past but cost kept you from going any further, the price of tags and readers has declined significantly.

(RFID is a way of identifying supply chain goods, using data-transmitting tags. Tags can often be read from several feet away.)

Also, it’s now easier to tag and read cases and cartons in bulk. At the same time, technological advances have made it easier to link RFID results with existing warehouse management systems. This has resulted in a quicker ROI (return on investment) for many companies.

There are seven steps that can help you consider whether your supply chain operation is ready for further exploration of RFID:

1. Identify your needs and expectations. What inventory do you want to track with RFID? How often do you need to read it? How close will you need to be to read it? Will one type of reader work with all tags?

2. Do a little homework. Talk to fellow inventory pros who have experience with RFID. What were the ups and downs?

3. Set up a sample run. Tag some items and read them. Determine where visibility is most critical.

4. How’s it working? Looking at the results of your sample run, were the reads reliable? Does the RFID read system work in an environment that might be “noisy” with other electronic communications? Where were the shortfalls?

5. Is it worth the money? Is an RFID system better and more cost-effective than what you’re doing now? If not, it’s best to wait and try again in the future.

6. Determine the ripple effect. If you do implement RFID, what other aspects of your business processes will be affected? Will it mesh with your current warehouse management system?

7. Decide what to do now. Should you broaden the scope of your preliminary RFID implementation? Do you need to get more information? Is there something you want to try, by taking a slightly different approach?

Tags: inventory, RFID, supply chain, technology, warehouse management