It’s been slow coming, but RFID is beginning to carve out a home at an increasing number of distribution centers — and helping companies save at the same time.

One of the biggest hold-ups to widespread RFID implementation has been cost.

Companies need to purchase expensive software and hardware to turn inventory operations and distribution centers over to RFID (radiofrequency identification) monitoring.

But now, some businesses are making inroads that help soften the expense and cushion the need to replace existing warehouse management systems.

It’s now increasingly possible to implement RFID by taking a piecemeal approach.

For example:

• The cost of RFID tags has been steadily dropping
• The focus has shifted to re-usable containers and pallets, so tags can be recycled, and
• RFID technology is showing increasing promise in the materials-handling end of the supply chain.

By focusing on the positive impact on shipping and loading procedures, RFID is winning more allies than it did under a “big picture” approach.

RFID can still be a useful element in your distribution center without necessarily extending it to other tasks, like receiving, order picking, etc.

This helps more companies at least consider using RFID, instead of being scared off immediately by the price tag.

Tags: inventory, RFID, software, supply chain