Starting on January 1, 2005, the DoD required that the same UID be read into an RFID tag attached to each product and shipping carton. That means suppliers must buy, install and configure tag writers, as well as create new work procedures. And many manufacturers will integrate RFID into Warehouse Management Systems.

Shifting UID and RFID from cost to profit is a significant challenge not all will achieve. How will your company fare?

A Distinctive Point of View

The DoD deadline for incorporating UID and RFID into the manufacturing process is not an issue of compliance, but rather an opportunity for competitive advantage.

Manufacturing is a zero-sum game. One company’s improvement typically comes at a competitor’s or supply chain partner’s expense. Given this environment, the introduction of a technology capable of providing a competitive advantage is welcome. RFID is that technology.

RFID provides clear benefits throughout a manufacturer’s supply chain, with distinct implications at the maintenance support and logistics level. Better availability and management of inventory provides immediate efficiencies and the ability to streamline — even eliminate — time-consuming support and logistics processes.

RFID chips will revolutionize aircraft and land vehicle maintenance by recording lifecycle use of parts and components. Handheld wireless receivers will allow the maintainer to read the “health” of each suspect part, and with prognostic sensors even predict failure in mission readiness.

CSC Recommendations

How will you incorporate the technology and realize the associated benefits?

CSC recommends developing an RFID strategy consistent with overall business objectives for value achievement, not costly compliance retrogrades and patches. From capital budgeting to change management, we suggest a manufacturer employ a deliberate approach to RFID implementation. Crafting a strategy on the heels of prominent industries — largely high tech and retail — that have already broken ground with RFID will help you avoid a rushed, ill-timed implementation as the DoD policy deadlines approach:

• Conduct an inventory of contracts and associated deliverables awarded post-January 1st 2004.
  
• Determine impacts to information technologies and business processes necessary to insert new UID nomenclature.
  
• Craft a strategy and planning document to insert necessary process changes based on contract deliverables, both current and anticipated.
  
• Interface with contracting authority to determine electronic submittal of UID within the DD250. Reconfigure electronic submission protocol.
  
• Pilot RFID technologies in preparation for contracts awarded post-January 1st 2005.

Such strategy and planning will drive development of a roadmap that includes both process and technology recommendations. This roadmap will position your company to avoid costly “look up tables” and information technology “patches” while at the same time ensuring uninterrupted payment streams. RFID strategy and planning — in the face of the looming DoD compliance deadlines — provides a distinctive competitive edge.

Learn More

To learn more, read Radio Frequency Identification (RFID) – deadline January 2005 .

For more information, please contact Chuck Davis, Principal, +1.847.680.9140, or
Pete Wiese, Practice Manager, +1.214.523.5558.

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