RFID technology effective in aerospace and defense industries
Posted Nov. 13, 2006
The aerospace and defense industries are continually searching for ways to improve their supply chain management and asset tracking processes. And one technology they are finding effective in improving operational efficiencies is radio frequency identification, according to a new study by ABI Research.
"The RFID Aerospace and Defense Market" report highlights a growing trend among aerospace and defense companies in the use of RFID to manage maintenance, repair, and overhaul supply chain processes.
"MRO supply chain is about safety and security as well as efficiency," said ABI research director Michael Liard. The new supply chain equation for aerospace and defense manufacturers is maintenance strategy plus supply side strategy, he noted. "RFID can fulfill many MRO event requirements by enabling real-time track-and-trace and unique identification," Liard said.
Additionally, an integrated MRO supply chain allows the consolidation of all sourcing, procurement, receiving, distribution, and service to one supplier.
"Integrated MRO strategies based on RFID tagging can deliver marked efficiencies to the processes of locating parts, tools, and materials, and to producing the significant amounts of documentation required to meet regulations in the aerospace and defense industry," said Liard. "RFID is an enabling technology that can facilitate a shift from corrective to predictive maintenance strategies."
According to ABI Research, the market for RFID solutions deployed by aerospace and defense companies will exceed $2 billion by 2011.