An integral part of this collaborative effort will be the establishment of a Centre of Excellence at McHugh’s company headquarters in Waukesha, Wisconsin, which will examine and analyse the results of pilot projects already underway that are designed to test potential applications and benefits of RFID.

The RFID Centre of Excellence will provide a forum for the founding members to examine the future benefits of implementing RFID solutions into supply chains. Through research conducted at the centre, Intermec and other participants will be able to determine where RFID can be of greatest benefit to the supply chain process. The new technology potentially allows consumer goods manufacturers to eliminate billions of dollars in supply chain inefficiencies. Retailers alone could profit from streamlined supply chain operations through reduced inventory time.

Intermec, an RFID pioneer, was selected as a founding member of the Centre of Excellence as a result of its track record in working with companies such as McHugh, Marconi Info Chain and CHEP. Marconi is a premier Intermec partner. Together the companies integrate Intellitag RFID technologies into business problem-solving solutions for their joint customers. CHEP, the world’s largest equipment pooling Systems Company, in 2001 selected Intermec’s Intellitag RFID technology for a pilot project to track its wooden pallets in real time.

Companies already use RFID systems for manufacturing tracking and inventory control. Goods and assets can easily be tracked with RFID tags, which include a computer chip and its antenna encased in a protective covering of some type depending on the application. Tags are programmed to contain identification, serial numbers, history and other attributes.

Information on Intermec Intellitag tags can be updated on the fly without interrupting the normal process flow, often at a speed 40 times faster than bar code-based systems. Because radio frequency is used, two-way communication, even from a distance, does not require line of sight. Using Intermec equipment, many tags can simultaneously be identified by group and sub-group in microseconds. Information on the tags can be locked or changed as needed; users also can embed a unique identifier code for each chip that cannot be altered during the life of the tag.

"We know from our first-hand experience working with Intermec technology that Intermec belongs in the Centre of Excellence," said Paul Witt, Marconi Info Chain vice president of business development. "Marconi and Intermec already have a significant history of implementing asset tracking systems in ways that benefit our joint customers."

"CHEP has long been supportive of giving added visibility to products on their way from the point of production to the point of sale, and several of our latest initiatives are designed to drive that process," said Brian Beattie, Senior Vice President, Marketing and Business Development, CHEP International. "The Centre of Excellence will help all companies operating in this area to collaborate for the betterment of the entire supply and demand chain."

"The Centre represents a promising beginning to what may well be a revolutionary advance in supply chain operations and, ultimately, customer service," said Winston Guillory, Intermec vice president, North American Sales and Worldwide OEM Operations. "As a pioneer in RFID technology, Intermec is delighted to join some of the largest consumer goods manufacturers, along with leaders in enterprise logistics and pallet and container pooling. Even more gratifying, the centre is already moving forward with various pilots at the MIT Auto-ID Centre to validate the use of RFID tags to track inventory, and is developing partnerships to determine the feasibility and ROI of the technology at various points along the supply chain."