It’s true: The use of a Radio Frequency Identification (RFID) technology promises a high degree of automation and a lower error-proneness due to direct association of data and material streams. Possible solutions are virtually unlimited – and there also lies the problem. “Many things are achievable technically. But is this also profitable? Is the application strategy clear? And does the solution fit into the desired business strategy? Those questions are posed too rarely”, says P3 consultant Ulf Glaser.

The P3 Auto-ID team explores options for an aircraft manufacturer, to raise the transparency of multiple logistics processes with RFID. “We coordinate all RFID applications of the company and always must be able to justify, why we invest resources into one project or another.” Often times it’s obvious to look for a technical solution – and the customer also asks for it –, but during process analysis with the customer and his technology partners it’s frequently established, that an optimization is realizable with completely different means. “In such cases an RFID application can be far too expensive.”

Used correctly, RFID investments amortize rapidly on the other hand. The company for example had a significant problem with the transport of large components like wings or cabin parts from suppliers to the final assembly. “The scaffolds required for the transport were flown across Europe, unloaded, brought to another place again, and at some point no one kept track of their availability anymore”, says Glaser. Equipped with a tiny RFID tag (a chip with an antenna) the logistics experts keep an eye on every part now. Information is stored on the tag about what can be transported with the scaffold, which destination it’s headed and if and when it was discharged. “There are more than a dozen company-owned suppliers. With one of them we tested the RFID application. We’ll recoup incurred costs after only one and a half years!”

The strength of P3 is its independence according to Ulf Glaser. “We don’t want to install a certain technology for better or worse, just because she is extremely popular right now, like RFID. We rather question the whole logistics strategy of the company, for example whether time and money are invested in the analysis, new technologies or the change management.”