Thursday, June 02, 2005

How To Design a Cost-Effective Distribution Center Using RFID

"Warehouses and distribution centers are caught in a squeeze between customer service demands and cost drivers. Creating a network that can deliver on customer demands while keeping costs in line -- or lowering them -- is the number one challenge facing supply chain executives, according to a recent study by ProLogis Global Solutions. Increasingly, the companies who first looked at compliance with radio frequency identification (RFID) initiatives for retail giants Wal-Mart and Target are asking how they can push the benefits of greater visibility back up their own supply chain. Those firms are asking, "How do I couple that with my existing systems and my existing devices within my packaging and application environment," says Romen Kuloor, vice president of Blue Vector Systems, a provider of RFID solutions. With razor-thin margins, some companies that took their first step into "slap and ship" compliance are finding they are actually losing money on each RFID-enabled shipment." Source CRM News