Department of Defense

ComponentSoft has done the first and most significant RFID item level pilots for the DOD We have the largest number of Real RFID production clients. Our clients have shipped millions of shipments containing hundreds of millions of items to the DOD successfully utilizing the ItemSight RFID foundational application.

The DOD (Department of Defense) is moving towards RFID (Radio Frequency ID) tags on all items. Every item produced for the DOD will require an item-level RFID tag capable of broadcasting an RF signal 10' allowing high-speed/accurate inventory.

Each RFID tag is unique and serialized for a specific item type (National Stock Number / NSN). When items are placed in a case/carton, they must be associated to an external case/carton RFID tag. When the cartons are palletized, the carton RFID tags must be associated to a pallet RFID tag. Once the item-to-case-to-pallet association is complete, the RFID tag data is transmitted to the DOD.

ItemSight for Department of Defense features the following benefits:

• Seamlessly connect to VIM-ASAP or WAWF-RA facilitates quick DOD payment process
• ItemSight has modules for DOD Prime contractors and Subcontractor
• Automatic contract download and management.
• All contract and RFID data management between Prime and subcontractors
• Unlimited number of subcontractors can be managed through one central Prime contractor
• Near 100% inventory accuracy
• Modular Architecture allowing incremental build out of RFID infrastructure with very little upfront investment.

Dept of Defense Cracks Down on RFID Starting October 1, Shows Big Returns on RFID

Wednesday, September 28, 2011 at 8:18AM

DOD will lower supplier ratings meaning they are not going to be winning any new contracts if they are not tagging with RFID. The DOD is serious about RFID and for good reason: They have measured inventory accuracy improvements. An audit by LMI (Logistics Management Institute) shows improvement from 5% (before RFID) to 0.2% (after RFID).The Estimates represents over $100,000,000 a year in inventory loss reduction.

It is estimated that in a mixed-lot shipping environment one in twenty boxes will contain an error. An analysis was done on more than 20,000,000 transactions to prove the exact percentage of miscounts, miss-packs, and general mistakes that occur during fulfillment and shipping. This is a fact that couldn't be proven in a time effective manner until RFID.

A study by "The Center for Retail Research" showed that 16% of losses/shrink occur due to administrative errors such as miscounts, about 35% from employee theft. RFID can stop all of that.