April 1, 2004—For a number of world-class enterprises, superior supply chain management is increasingly cited as the secret to success. One senior executive at Dell Computer refers to the supply chain as "the biggest leverage point we have." And in a recent study by a team from Accenture, Stanford University and INSEAD who conferred with hundreds of companies in Europe and North America, researchers found a direct correlation between supply chain excellence and a positive bottom line.

More and more companies are realizing that they must master the supply chain, not only to compete but to conquer and enhance business performance. But where to start? Consumers are demanding higher product quality at lower prices. Companies struggle to meet these demands while contending with rising labor costs, which account for up to 30 percent of overall supply chain costs, according to an Accenture benchmarking study.

Radio frequency identification (RFID) can help. Accenture Technology Labs, Accenture’s technology research and development organization, has applied its expertise in technology innovation and collaborated with Accenture’s supply chain practice to develop an RFID-enabled Silent Commerce prototype for the supply chain. Silent Commerce refers to business benefits derived from new types of applications that result from intelligent and interactive objects. It's enabled by tagging and tracking technologies such as RFID, combined with emerging sensors and continuous Internet connectivity.

Accenture’s Silent Commerce Supply Chain solution makes individual items "smart" and traces them from manufacturing through to retailing. The solution provides immediate achievable benefits and enhanced business performance through operational efficiencies while revolutionizing product flow from production to point of sale.