RFID
Radio Frequency Identification (RFID) is used to identify, track and sort objects. A tag is inserted in an object for transmitting information about the product identification; the data is transmitted by radio waves and received in a digital form for storing in computers. The tag is a tiny antenna with the ability to send radio signals to a reader or a mechanism that is able to receive radio signals. RFID is presumed to have potential applications in supply chain management which is expected to generate enormous data for BI analysis purpose even though applications development is uncertain.
Wal-Mart’s declared its plans to use RFID with much fanfare but the effort petered off after the suppliers balked at the idea. The aggregation of the RFID data will be a complex task of integration as the data will be received from a plethora of often small companies involved in logistics management.
Yet, some companies have found ways to use RFID data to their advantage. Graniterock, a Watsonville, California based company, has installed a BI system to monitor time spent by trucks in its quarries. The clerical tasks of identifying incoming and outgoing trucks don’t need to be done any more, as their movements are recorded electronically, so that Graniterock saves time. The customers benefit as they are able to monitor the costs they incur on the time spent by individual trucks and the relative efficiency of each company.
RFID has potentially profitable applications in several different industries. Tracking baggage in the airlines industry is an enormous cost and pioneers like Delta Airlines is already using RFID to trace lost baggage. The drug industry also has an intractable problem of controlling the diversion of drugs for intoxication.