Cutting through the RFID fog
By Mike Levans, Chief Editor -- Logistics Management, 6/1/2004
It's getting tough to find a seat in any logistics or warehousing conference session that has "RFID" in its title. The buzz around this technology and related "adoption mandates" issued by the retail giants is nothing less than a godsend for conference organizers. And judging from the information-gathering frenzy I witnessed at DC Expo in Chicago last month, I can't imagine attendance, or interest, slacking any time soon.
From the back of standing-room-only sessions I saw heads down, pens rushing across notebooks, and arms jetting up as each speaker reached a conclusion. Questions ranged from downright simple to nearly unanswerable: "How does it actually work?" "When do I need to implement?" "Will it ultimately change my supply chain?"
To those readers with their hands raised, I'm pleased to say that this month's cover story will be working a double shift to help you cut through the RFID fog. First, it announces that International Paper (IP) is the Gold Medal winner of this year's "Best Practices in Logistics Management" Award. Congratulations go out to Scott Andersen, Troy Ashmore, and the entire team at IP's mill in Texarkana, Texas, for the implementation of its fully-operational, RFID-based warehouse tracking system.
Second, this article answers those burning questions as it walks readers through the development, inner workings, and benefits of this unique system, which has revolutionized the way the facility plans production, utilizes warehouse space, and ships product.
Andersen, who championed the project, says he's not surprised that so many logistics and warehousing managers are finding themselves lost in the fog. They need to understand not only what RFID can do, but also what to do with information once they have it.
While IP knew what it wanted the technology to track, its RFID mission only sharpened when Andersen set up "what if" scenarios: "What if the warehouse had total visibility and we found out that 80 percent of our product was being moved by 20 percent of our drivers?" "What would this mean to our planning?"
Answering these "what ifs" helped IP define the information's value, and in turn, design a system that produced real benefits. "The value comes in the information, how you aggregate that information, and how you use it to figure out what it means to your operation," says Andersen. "Only then can you ensure that an RFID solution can evolve and be a real solution."
If your arm is still in the air, give this month's cover story a good read.
Mike Levans, Chief Editor
2004 Best Practices Awards: Gold
05/31/2004Logistics Management 2009 Digital Editions
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