Understanding the Impact of Mandated RFID Compliance on the DoD Supply Base

Abstract

In response to the Department of Defense's (DoD) mandate that all of its suppliers should adopt Radio Frequency Identification Devices (RFID), this research seeks to understand the impact of the mandate on the DoD supply-base. Specifically, the goals of the research are to understand: (1) the compliance strategies for RFID in defense supply chains with mandated compliance, (2) the adoption factors, timeframes, and costs of such RFID implementation, and (3) the impact on purchasing, logistics, supply-chain continuity, and supply-chain relationships. To achieve these goals, two stages of data collection are currently underway: (1) several case studies are being developed and (2) an industry-based survey is being developed. In support of the case studies, multiple interviews are being conducted together with detailed process mapping. This approach facilitates the identification of enablers, timeframes, barriers, benefits, costs, impacts, organization, best practices, projects, etc. The industry survey will provide the opportunity to test the conclusions and findings from the case studies as well as to identify industry trends and directions. Currently, the early indications of the research reveal that, although DoD suppliers have developed an initial slap and ship capability, they are still some distance from having a robust enough capability to meet compliance for significant volumes of product order. Their development of a longer-term sustainable capability is being hampered by the immaturity of available technology and the lack of clarity in the detailed requirements from the DoD.