"Information flow is key to managing supply chain complexity," says Reik Read, vice president of industry analyst Robert W. Baird & Co. (www.rwbaird.com). And to maximize the flow of information, three key technologies – automatic data capture (ADC), the Internet and supply chain/enterprise software – must all play a role.

At the recent annual meeting of the industry trade organization AIM (www.aimglobal.org), Read explained that ADC provides the ability to collect data and feed it to the internal software-based information backbone that is linked to supply chain partners over the Internet. He went so far as to say that the addition of real-time data gathering capabilities can improve the return on investment for that software backbone by 50%. Read added that several surveys suggest strong interest in upgrading current ADC systems to enhance information flow too.

As a result, Read expects 20% plus annual growth for a basket of ADC technologies through 2005. While his expectations for growth in bar code based technologies is more modest, only 8-11 percent, Read sees mobile computing (22%), radio frequency identification (27%) and wireless local area networks (37%) leading the way. He also expects that Bluetooth-compliant wireless units will be part of this growth.

The benefits of this improved information infrastructure include improved delivery and responsiveness, better management of production and inventory, improved accuracy and quality, and strengthened vendor relationships, says Read.