RFID regulatory compliance is hitting some Department of Defense suppliers on their next shipment!
Are you ready to negotiate reasonable cost reimbursement with the DoD?
Do you know how RFID compliance will impact your profitability and revenue?
For years the Department of Defense (DoD) has struggled to implement a clause into DoD supplier contracts mandating suppliers to RFID (radio frequency identification) tag shipments and electronically transmit an ASN (advanced ship notification) to the DoD – establishing an unbroken link from DoD suppliers all the way to units in war zones. On November 14, 2005 it conclusively became law and the DoD is enforcing RFID Logistics tagging on some suppliers’ next shipment. The DoD RFID mandate has dramatically expanded the number of contract solicitations that require RFID Logistics tagging for the 2006-2007 fiscal year. Other federal government agencies are also beginning to include RFID requirements in their contracts. The DoD initiative carries potentially significant risks for DoD suppliers. It typically takes 3-9 months to implement efficient RFID tagging and information processing procedures that do not negatively impact bid competitivness and contract profitability. Companies that delay RFID implementation until after contract renegotiation will not have sufficient time to implement systems that deliver the low cost per case they need. In addition, companies that don’t have firm RFID implementation plans in advance of contract renegotiation invariably fail to exploit DoD RFID compliance cost reimbursement to achieve a break-even (or better) on RFID related investments.
- RFID solutions are tailored to the specific needs of the customer.
- New Technology can be integrated to meet any customer’s inventory and fulfillment needs.
- ADS can generate labels, collect and transmit data.
- ADS can act as a flow-through center or a fully integrated part of your distribution network.
Benefits for using RPC:
- Streamline your A/R and A/P acconts by eliminating time consuming paperwork.
- Increase order and inventory accuracy.
- Adapt to DOD, pharmaceutical industry and mass retailer requirements without a large capital investment.
- Work with a proven leader in the warehousing and third party logistics service industry.
Our RFID processing center (RPC) is an ideal way for you to integrate new technology into your supply chain. The cost of implementing RFID solutions can be very high depending on your company’s needs. Using a third party RPC will allow your company to integrate this new technology while keeping costs low. ADS is offering you a way to keep costs low and benefit from the new technology. Contact ADS, one of the leading RFID Supply Chain Solutions Providers, today to discuss your company’s specific RFID needs.