Proficiency in the use of advanced inventory technology will be an integral part of being a Department of Defense (DoD) vendor in the coming years, including companies that ship products to Tobyhanna Army Depot.


Central to these improvements is an automatic data technology known as radio frequency identification (RFID), which is set to become part of the DoD supply chain. The overall technology has been gradually integrated into inventory systems throughout the world for the past 60 years, and can achieve high accuracy in inventory control and supply chain management.


An RFID system allows data to be transmitted by a mobile device known as a tag. This data is "read" by an RFID reader and processed, and then sent to a central data base for use by the organization maintaining the inventory.
RFID applications can provide location information about items in transit, as well as specifics about the product that is tagged. The DoD has successfully used tags in various forms to reduce logistics costs and improve supply chain visibility for more than 15 years.

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Two big advantages are achieved with inventory systems that use RFID technology. First, the high degree of product visibility creates accurate knowledge about inventory levels by eliminating the discrepancy between records and actual counts.
RFID technology can also prevent or reduce the sources of errors that are entered in inventory databases.

This form of prevention is critical to the degree of data accuracy computerized inventories rely upon, as incoming shipments arrive and are subsequently stocked.
Alan Estevez, assistant deputy undersecretary of defense with the U.S. Department of Defense (DoD) supply chain integration in Arlington, Va., says the time is right for RFID technology to be utilized by the global DoD.

"The DoD operates possibly the world's most complex supply chain in support of United States and coalition forces around the world," says Estevez. "It is critical that our logistics systems be able to manage required supplies, equipment, and materials so that our forces have what they need when they need it, while simultaneously providing the expected value to the American taxpayer. More than ever before, these goals must be realized in real-time using all available capabilities. RFID is a tool that enables DoD to meet the goal of supporting the war fighter, no matter what the mission."

There is no, one technological standard concerning RFID implementation. The tags can be either passive, semi-passive which is also known as semi-active, or active.
Passive RFID tags have no internal power supply. On the other hand, active RFID tags utilize an internal power source which drives integrated circuits to generate an outgoing signal. Active tags are generally much more reliable than passive tags.

Semi-passive RFID tags are very similar to passive tags, but also utilize a small battery. This power source allows the tag's circuit to be constantly powered.
Successful users of these RFID systems claim many benefits, including the reduction of inventory inaccuracies, lower labor costs and simplier business processes.

The DoD has issued an interim rule amending the Defense Federal Acquisition Regulations Supplement (DFARS) to include commodities and DoD locations that require package marking with passive RFID tags. This rule addresses the second year of the three-year rollout plan for DoD supplier implementation of RFID.


Year one of the plan was implemented in the final rule published during September of 2005. This interim rule directly affected suppliers to Tobyhanna when the contracting officer requires the use of passive RFID tags on shipments to the depot.
When required to do so via contract, select suppliers must begin applying passive tags to their case and pallet shipments. The DoD has many of these contracts with its suppliers that are renewed regularly.

As new contracts become effective, the RFID requirements will be included according to the supplier implementation plan.
This information can be reviewed via the Internet at www.dodrfid.org.


Tobyhanna inclusion


Tom Garubba, director of contracting, small and disadvantaged business specialist at Tobyhanna Army Depot, explains that RFID integration at the depot will take place using the long-term plan.

"A tremendous number of specifications must be created for Tobyhanna to really use this technology," says Garubba. "There also are a great many questions that are being raised. When the system eventually is expanded to greater use, will it be used to tag components at all levels? This could include even the nuts, bolts and screws used down in the repair shops. There are a lot of items we use here and because of this, implementing the system is a mammoth undertaking."

An independent representative of the DoD supply chain office in Washington confirms plans for RFID use at facilities such as Tobyhanna. The benefits to the inventory systems will be noticed from the perspective of asset visibility.

The DoD's development of a growing and developing infrastructure to read tags will be moving ahead at full speed by 2007. Eventually, the evolving system will involve the use of tags for internal use within government facilities as well as for external shipments.
Wal-Mart is among the private companies that have joined the DoD with published requirements that vendors place RFID tags on all shipments. Because of the size of these two business organizations, the new RFID requirements will affect thousands of global companies.

The deadlines for implementation of RFID tags have been extended several times because many vendors face significant difficulties implementing RFID systems. In many cases, tag-read rates run at 80 percent because of radio wave problems caused by the products and packaging.

"DoD logistics is a complex enterprise, and delivering cost-effective readiness, and the ability to accomplish any assigned military mission is a central challenge," adds Estevez. "The DoD is responsible for more than $700 billion in assets. The president's combined annual DoD logistics budget represents more than $240 billion. DoD is supported by over 51,000 vendors worldwide, and maintains 2,000-plus legacy systems and an $80 billion inventory. Because these assets directly support our troops and our mission, applying the best and most cost-effective tools is paramount. RFID technology already plays a key role in DoD's supply chain, and its impact in the coming years will continue to grow."

Source: Northeast PA Business Journal


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