Aberdeen: Manufacturers Leverage RFID to Reduce Waste, Enhance Production
February 20, 2007 // Published as a news service by IHS
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Early adopters of radio frequency identification (RFID) in aerospace, automotive, pharmaceutical, paper, electronics and heavy industrial manufacturing are leveraging the technology to drive out waste, enable just-in-time delivery of finished goods and realize continuous improvement throughout production.
According to Can RFID Deliver the Goods? by Aberdeen Group, manufacturers are showing signs of maturation in their approach to RFID.
Penetration of RFID into the manufacturing sector is only 3% or 4% today. But growth is strong - more than 112% in 2007 - and the average manufacturer's RFID budget will grow from $50,000 to $75,000 per year in 2006 to $100,000 to $200,000 in 2007.
The value proposition of RFID to the manufacturer can be segmented into three general areas:
- Optimizing the procurement and management of raw materials.
- Monitoring tools, equipment, parts and personnel in the production environment.
- Providing forward demand visibility into the supply chain.
This research shows best practices for using RFID applications in manufacturing and ways to justify the investment. For a limited time, a complimentary copy is available at http://www.aberdeen.com/link/sponsor.asp?cid=3758.
Source: Aberdeen Group.