ABI: RFID Responds to A&D Supply Chain, Asset Management Requirements
April 4, 2007 // Published as a news service by IHS
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To keep pace with an ever-changing aerospace and defense (A&D) industry, companies are seeking better ways to manage complexity, cut costs and boost productivity.
According to ABI Research, radio frequency identification (RFID) offers a lot of the answers.
There are scores of supply chain and asset management applications where RFID is being used, tested and deployed to solve real-world business problems within A&D markets.
Analysts said a multitude of recent announcements from the U.S. and allied militaries, Boeing, Airbus and NASA bear witness to the technology's growing popularity.
"RFID has the strategic potential to help A&D companies improve supply chain visibility, as well as asset management and optimization," said ABI Research RFID director Michael Liard.
"However it must be noted that RFID is not a stand-alone panacea for all business problems. ABI Research believes that the integration of bar code, passive and active RFID, GPS (global positioning system), Wi-Fi, cellular and sensors is increasingly required to provide a holistic view of the sophisticated and dynamic A&D vertical market."
Recent analysis from ABI Research identifies several areas of interest for RFID stakeholders:
- Supply chain mandate compliance remains a leading industry driver as A&D supply chain partners work to satisfy the U.S. Department of Defense's (DOD) RFID requirements.
- Boeing, Airbus and other industry influencers are actively pursuing asset-based RFID applications, including solutions for returnable and reusable asset management and spare parts tracking and authentication.
- Standards focus has predominantly been on low-cost passive ultra-high frequency (UHF) solutions and off-network RFID data. However, ISO 18000-7 is also garnering increased attention as a technology standard for active-based RFID solutions.
- The initial focus for A&D RFID will be on enhanced visibility but, in the future, it will be used in conjunction with sensor technology to authenticate and monitor objects, assets or items in real time. Semi-active/semi-passive solutions are expected to play a key role here.
Source: ABI Research.