DHL Plans RFID Tags For Every Package It Ships

DHL International announced that they plan to incorporate RFID tags in every package shipped by 2015 to gain tighter control of shipments, cut costs and improve operating performance by reducing paperwork and data collection -- a monstrous IT infrastructure initiative for a company that handles more than a billion packages each year.

"You could look at it as a huge, overwhelming challenge, but if you break the elephant into bite-size chunks, there's a way to tackle it," says Trevor Peirce, RFID global program director for the DHL global coordination center. "It requires lots of thought, and most people in RFID don't sleep much because they're always thinking."

Known as an expert in the RFID arena, Peirce's sentiments are not surprising. His efforts have been underway in a number of pilot programs and RFID pursuits at DHL for years. DHL is already supporting a number of the RFID initiatives throughout Europe and gained significant capabilities from its acquisition of Airborne Express in 2003.

According to the full InformationWeek article, DHL began testing RFID in 1998 and has since conducted 20 trials with passive and active technology. UPS Inc., by comparison, says it has conducted three big tests, such as using RFID to replace bar codes on packages.

Intellareturn Perspective: This is truly significant news, validating the solutions of Intellareturn as important needs in the industry as RFID adoption continues to expand and couriers explore new opportunities to provide better services and revenue generators.

British Airways Now Supports RFID ...

According to a Silicon.com article, British Airways (BA) will likely invest in RFID to cure the hassles and expenses associated with lost luggage. Up to this point, BA CEO Rod Eddington was quite reluctant to consider a large-scale RFID implementation. However, that position has clearly changed resulting from the airline's baggage chaos last year when 11,000 bags were lost following strikes.

SITA estimates that using RFID could save airlines over $1 Billion on their lost luggage costs. In addition to supporting the implementation of RFID, Eddington also believes that a one-system approach can avoid interoperability problems between airlines.

Intellareturn Perspective: Many have considered RFID to be a worthwhile initiatives for solving travel issues like lost baggage. While a number of airlines and airports have been testing pilot programs, the announcement by British Airways illustrates the importance of considering new solutions that answer the issues plaguing the airline industry. As competition and consolidation continue, these companies will find it increasingly important to address problem areas that are cost-intensive and turn them into competitive advantages that promote loyalty and passenger satisfaction.