What's Happening?
GS1 has released an updated RFID Tag Data Standard, TDS 2.3, which aims to revolutionize supply chain management by introducing web-enabled RFID tags. This new standard allows logistics units, such as pallets of goods, to have unique, web-accessible addresses. This capability enables these units to 'phone home' to a source website or web service, providing unprecedented visibility and traceability across the supply chain. According to Jonathan Gregory, senior director of global standards at GS1 US, this development is driven by the European Union's Digital Product Passport regulation but has broader applications, particularly in logistics. The new standard is expected to significantly enhance the ability to track goods, thereby reducing theft
and improving inventory management.
Why It's Important?
The introduction of TDS 2.3 is a significant advancement in supply chain technology, offering enhanced traceability and visibility that can help combat organized retail crime and cargo theft. By allowing logistics units to be tracked more efficiently, businesses can reduce losses due to theft, potentially lowering the cost of goods and insurance premiums. This development is particularly beneficial for industries like apparel, general merchandise, and food, where traceability has been less robust compared to sectors like pharmaceuticals. The ability to track goods more accurately can also improve inventory management and reduce the friction for law enforcement and retailers in recovering stolen goods.
What's Next?
GS1 US is actively promoting the adoption of TDS 2.3 through pilot programs and significant investments. As the standard gains traction, it is expected to invite new participants into the RFID ecosystem, including small businesses that previously had no reason to use the technology. The broader adoption of this standard could lead to widespread improvements in supply chain efficiency and security. Additionally, as more industries implement this technology, the overall value and utility of RFID technology are expected to increase, providing long-term benefits across various sectors.
