Previous

Page - 4

Various presence-based wireless marketing features will be enabled through RFID, such as the ability to automatically inform a consumer when they are within the vicinity of a product type that they desire.

RFID and Improvements in Business Processes

RFID is expected to improve many different business processes including Supply Chain Management (SCM), Customer Relationship Management (CRM), Manufacturing Resource Planning (MRP), and Enterprise Resource Planning (ERP).

The benefits to Supply Chain are expected to be enormous. The use of RFID for tracking the movements of inventory can save hundreds of millions of dollars. A study conducted at the University of Florida in 2001 found that $5.8 billion (US) was worth of inventory was lost due to administration errors.

RFID can also be used to improve supply chain integrity, reduce labor costs, provide greater inventory/merchandise visibility, reduce material/product loss, promote vendor-managed inventory control, virtually eliminate the need for physical inventory management, and ensure product authenticity.

In a manufacturing environment, RFID can be used to improve: -