Johnny, don't forget your lunch … or your RFID tags
AT&T recently rolled out RFID-based products and services that will allow schools to track assets, students, visitors, and staff, a move that will surely draw fire from privacy advocates.
John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
Are parents ready to send their kids off to school with RFID tags attached to their ID cards, backpacks, and books? The folks at AT&T should get a reading on that very soon. Last month, the company rolled out RFID-based products and services that will allow schools to track assets, students, visitors, and staff, a move that will surely draw fire from privacy advocates. The application— marketed specifically to K-12 facilities—works in conjunction with GPS-based mobile resource management services as well as the carrier's wireless data network and hosted applications.
The use of RFID and GPS technology to keep tabs on expensive machinery and laptop computers is becoming increasingly common, especially in the medical field. But U.S. consumers have been slow to accept the technology, especially when it is used to monitor the whereabouts of individuals. RFID for people-tracking applications is becoming more widely accepted in Europe, where some schools already use the technology for that purpose. However, a test of a similar application in California two years ago was halted when parents and the American Civil Liberties Union (ACLU) objected on privacy grounds.
AT&T maintains that school districts can benefit enormously from using RFID and GPS to track school buses. The technology would allow them to monitor the buses' locations, speed, and condition while on the road as well as to report on events occurring inside the vehicles. RFID could also enable school districts to improve student safety and save money by routing their school buses more efficiently and by cutting down on fuel, maintenance, and labor expenses.
Efficiency and cost are not the only potential benefits of deploying such a system, says one analyst. "In today's world of K through 12 education, enhanced visibility regarding the location of students, teachers, and valuable assets is crucial," says Bill Hughes, principal analyst for In- Stat, a research group that analyzes the wireless systems market. "By introducing mobile technology such as RFID … school districts can … enhance student and teacher safety."
Albatross, a subsidiary of Singapore-based Pearl Informatics Pvt. Ltd., is marketing a similar service for students in India. The company notes that RFID can be used to record crucial data like medical records, school attendance, and report cards. Data could be obtained from cell phones equipped with near-field communication devices. In a published report, R. Shanker, CEO of Albatross, said that RFID could fill the same functions as Social Security numbers.
RFID market to reach $8.4B by 2012
Applications like asset tracking and real-time location services continue to drive growth in the RFID market, which is expected to reach $8.4 billion in 2012. A forecast released late last year by ABI Research's Mike Liard calls for annual growth of 21 percent over the next five years. ABI pegged the 2007 worldwide market at $3.8 billion, which represents a 24-percent increase over the previous year.
"Given the recent amount of activity and anticipation surrounding RFID technology, one might be tempted to believe the RFID market has been experiencing explosive growth," says Liard. "But while uptake of full-scale RFID systems remains slower than many in the industry had hoped, steady growth continues. There is an overall sense of cautious optimism in the market."
Liard notes that although few large RFID implementations have been announced lately, extensive pilot programs and closed-loop deployments are demonstrating solid cost justification for RFID. For example, asset tracking in health care, workin- process tracking in manufacturing, and the tracking of returnable transport items like pallets and containers can provide a significant return on investment. Liard adds that the fashion apparel and footwear item-tagging market is undergoing heavy pilot and trial activity, especially within Europe at retailers like Marks and Spencer, and Metro.
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Freight transportation sector analysts with US Bank say they expect change on the horizon in that market for 2025, due to possible tariffs imposed by a new White House administration, the return of East and Gulf coast port strikes, and expanding freight fraud.
“All three of these merit scrutiny, and that is our promise as we roll into the new year,” the company said in a statement today.
First, US Bank said a new administration will occupy the White House and will control the House and Senate for the first time since 2016. With an announced mandate on tariffs, taxes and trade from his electoral victory, President-Elect Trump’s anticipated actions are almost certain to impact the supply chain, the bank said.
Second, a strike by longshoreman at East Coast and Gulf ports was suspended in October, but the can was only kicked until mid-January. Shipper alarm bells are already ringing, and with peak season in full swing, the West coast ports are roaring, having absorbed containers bound for the East. However, that status may not be sustainable in the event of a prolonged strike in January, US Bank said.
And third, analyst are tracking the proliferation of freight fraud, and its reverberations across the supply chain. No longer the realm of petty criminals, freight fraudsters have become increasingly sophisticated, and the financial toll of their activities in the loss of goods, and data, is expected to be in the billions, the bank estimates.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
A measure of business conditions for shippers improved in September due to lower fuel costs, looser trucking capacity, and lower freight rates, but the freight transportation forecasting firm FTR still expects readings to be weaker and closer to neutral through its two-year forecast period.
Bloomington, Indiana-based FTR is maintaining its stance that trucking conditions will improve, even though its Shippers Conditions Index (SCI) improved in September to 4.6 from a 2.9 reading in August, reaching its strongest level of the year.
“The fact that September’s index is the strongest since last December is not a sign that shippers’ market conditions are steadily improving,” Avery Vise, FTR’s vice president of trucking, said in a release.
“September and May were modest outliers this year in a market that is at least becoming more balanced. We expect that trend to continue and for SCI readings to be mostly negative to neutral in 2025 and 2026. However, markets in transition tend to be volatile, so further outliers are likely and possibly in both directions. The supply chain implications of tariffs are a wild card for 2025 especially,” he said.
The SCI tracks the changes representing four major conditions in the U.S. full-load freight market: freight demand, freight rates, fleet capacity, and fuel price. Combined into a single index, a positive score represents good, optimistic conditions, while a negative score represents bad, pessimistic conditions.