Today, more information than ever is available about the supply chain. Like managing water with a dam, how we contain and put that information to best use is the challenge facing supply chain professionals.

Most of the buzz has been around radio frequency identification, or RFID. Less noticed has been the growth of voice technology as it moves from a niche solution to the mainstream.

How might these developments change the look of data collection and information management in the future?

Bob Trebilcock, Modern's Editor-at-Large, posed these questions to five information management experts: John Sidell, co-founder of ESYNC; Matt Ream, senior manager of RFID systems at Zebra Technologies; Dan Bodnar, director of data capture industry marketing for Intermec; Stanley Chew, director of international operations for HighJump Software; Jack LeVan, CEO of Vocollect.

In this interview, these experts look at the changing landscape for capturing and managing supply chain information.

Trebilcock: Let's start with a simple question. How is information management changing in manufacturing, warehousing and distribution?

Bodnar: The biggest change I see is that there are more options. That means the application is now dictating the data collection technology rather than trying to fit one technology, like bar codes, to all applications. For instance, we're working with an aerospace company that is going to etch 2D bar codes on parts to track product genealogy. Then they're going to use read/write RFID tags to capture information whenever maintenance is done on that part. That's translating into new scanning devices that are capable of using multiple data collection technologies.

LeVan: I think we're well into a third wave of data management in the supply chain. The first wave was using WMS to automate inventory. The second was driven by compliance bar codes. The third is a hands-free, eyes-free world where data management is task integrated. A worker using a voice system, for instance, doesn't need to use anything other than his or her voice and ears to identify a slot and pick.

Sidell: That last point is important. Real-time information collection is becoming less and less intrusive to the flow of materials. Ten years ago, there was a stop and start associated with picking up a terminal to scan a bar code. With voice and RFID, a person can capture the information in a seamless and unobtrusive manner.

Trebilcock: Have the information needs of your customers changed?

Ream: Their needs haven't changed. Technology is now enabling them to do more sophisticated things with information. Wal-Mart, for instance, is going to give its suppliers data about how much product is in the warehouse, how much is in transit to the store, and how much is in the back room. But to get the benefit of that information, users will have to change their processes and systems. That's not easy.

Trebilcock: For years, we've heard that RFID and voice technology were ready to take off. Why is now different?

Chew: A couple of things are going on. One is that the adoption of warehouse management with RFDC-based terminals and bar codes is complete, at least for Tier I companies. With a platform in place, many companies are looking for new ways to drive the return on investment factor. That's compelling them to invest in these technologies.

Sidell: If you're taking about RFID, it's Wal-Mart. It took a market leader like Wal-Mart to step forward and say 'we believe in the technology' and lead the charge.

Chew: That's true, but no mandate will be embraced unless it improves productivity and accuracy. RFID is being embraced because it holds the promise of harmonizing high levels of productivity with high degrees of accuracy.

Trebilcock: Are these solutions ready for prime time?

Sidell: That's the $64,000 question. Wal-Mart has confidence that RFID will scale. But there isn't anyone who can answer the question of whether it's going to work the way Wal-Mart expects until it happens.

Trebilcock: To listen to the buzz around RFID, you'd think that bar codes will be obsolete tomorrow. Is that likely?

Ream: I don't think so. Take Wal-Mart. They're not getting rid of the bar coded shipping label.

LeVan: Absolutely not. It's kind of like asking the question: will there ever be a supply chain without manual labor? If RFID tags get to 99.99 percent accuracy, you could eliminate bar codes and voice in a completely automated supply chain. But where there are human beings, there are benefits to bar codes and human voice.

Bodnar: I'd say the biggest myth is that RFID is the next bar code. The two will peaceably co-exist for a long, long time. For the sake of argument, let's say we get to a five-cent tag. Great. But at the item level, does it make sense to replace a bar code that costs a fraction of a cent with a nickel tag?

Trebilcock: If bar codes aren't going away, will we see voice, bar codes and RFID working together in the same facility?

LeVan: Absolutely. We're working on a concept now that combines voice and RFID. Voice improves the accuracy of the picker, but you verify the pick by having the picker read a 3-digit check digit. If you embed an RFID tag at the location and the picker has a body-worn reader, he can receive picking instructions by voice and use RFID to automatically verify the pick.

Trebilcock: Are there other examples of where each works?

Sidell: At today's prices, RFID is going to be used at the pallet or carton level because of the cost associated with the tags. That's great at the inbound and the outbound. Voice is awesome for picking. Bar coding is still applicable when you're doing a confirmation of moves like scanning locations. And bar codes are great for each picking. It's just not practical to place RFID tags on each unit.

Trebilcock: Stanley, you're our WMS expert. What role does a WMS play in coordinating all of these different technologies?

Chew: It's very important. Before you can implement RFID or voice you need a WMS strategy.

Trebilcock: Why is that?

Chew: If you are trying to manage compliance for Wal-Mart, compliance means accuracy and WMS systems have always delivered a high degree of accuracy within the distribution center. Without a WMS, you have to input information to generate bar codes or RFID tags. The opportunity for error is very high in that scenario and it's contrary to the notion of compliance.

Trebilcock: Does anyone else want to weigh in here?

Sidell: The challenge going forward is for software vendors to actually build a convergence of these technologies in their applications. If you work with any WMS and see the dialogues they have for all the processes around bar coding, you'll understand that to convert that WMS to take advantage of RFID is a monumental effort. It's going to take a lot of very engineered thought to truly utilize RFID in that application in an efficient and effective manner. That will take a while to shake out.

LeVan: The short answer is that the WMS is very, very important. The WMS is becoming the platform to organize captured data and data output. The industry leaders are using support for RFID and voice to distinguish them from their competition.

Trebilcock: But aren't there a lot of legacy and homegrown systems still out there? Are those going to cut it, or are we going to have to update those systems to take advantage of these technologies?

Chew: Legacy systems are not going to cut it. The way they are constructed actually prohibits them from adapting to these new technologies.

Bodnar: I think Stanley's right. Existing software can be modified for compliance without updating your WMS. But getting the real benefit from RFID may require an update.

LeVan: Our customers believe they're probably going to have to upgrade their WMS in the next 12 to 18 months. But they're expecting a shakeout in the WMS industry. So, they don't want to invest in a company that may not be there in the future.

Sidell: The question is: are there WMS systems out there now capable of taking advantage of all that information? It may be coming, but in my opinion, there isn't a vendor who has a live user who's optimized the use of voice, RF and RFID in one environment.

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