RFID reduces costs, gets supplies to troops in Iraq faster

"Wal-Mart has proven that RFID technology can help it keep its store shelves stocked with the products customers want. Similarly, the Department of Defense is demonstrating that the technology can get key supplies to its soldiers in Iraq much quicker. Speaking at the Council of Supply Chain Management Professionals' annual conference, the DOD's Alan Estevez told attendees on Monday that by using RFID in conjunction with other technologies, the DOD has been able to reduce inventory in Iraq from about $127 million to about $70 million. In addition, the DOD has increased its ability to fill requests for critical supplies from Marines in the field. With the help of RFID, the fill rate has improved from 77 percent to 89 percent, while soldiers, confident their orders will arrive on time, have reduced the retail backlog of requests for items coming into supply areas from 92,000 items to 11,000. The results were obtained by using active RFID tags, although Estevez says those tags were used only because the depots were already set up for them, and that the use of passive tags is quickly being phased into the DOD operations." Source: dcvelocity.com