Oracle, Microsoft Break Into RFID
Technology powerhouses Oracle Corp. and Microsoft Corp. are jumping on the RFID bandwagon. The software providers will incorporate tools for radio frequency identification technology into their latest warehouse management software applications so users can comply with mandates set by Wal-Mart Stores Inc. and others.
Wal-Mart—along with the U.S. Defense Department and several other agencies and retailers—is requiring that its top vendors become RFID-ready by 2005. That means vendors must have the infrastructure in place to track incoming and outgoing inventory through RFID technology, which uses silicon chips to store product and shipping data that can be transmitted by a scanner.
Both Microsoft’s and Oracle’s products are aimed at pallet- and case-level tagging for automatic processing of inbound and outbound shipments, as well as identifying, tracking and managing pallets and cases as they move through the supply chain.
The software giants expect the improved order visibility will allow users to make better decisions about production, inventory stock and delivery dates and to adapt to fluctuating market demands. Additionally, the companies expect the real-time tracking capabilities the products provide will improve security and cut costs associated with manual processes.
Oracle is adding RFID features to its Oracle Warehouse Management module this summer.
Microsoft’s business solutions division has added RFID capabilities to the AxaptaWarehouse Management package. With Axapta, companies can monitor tags at storage, loading and shipment points and feed data back into the software.
“Companies are increasingly evaluating RFID technology for its potential to dramatically change the economics of shipping, receiving and inventory management,” said Jeff Woods, an analyst at San Jose, Calif.–based Gartner Inc. “Enterprises that can leverage RFID to create RFID-centric processes in order fulfillment, manufacturing and warehousing will achieve strategic differentiation from their competitors.” —Robert McAllister
