Oct 25, 2005This article was originally published by RFID Update.
October 25, 2005—AMR Research last week released an analysis of Boeing's recent announcement that it would RFID tag certain "maintenance-significant" parts of its planned 787 Dreamliner aircraft, slated for 2008 production delivery. Entitled RFIDentifying a Way To Make a Better Airplane, the report indicates that Boeing's initiative will affect hundreds of the airplane manufacturer's suppliers, and may even trickle down to sub-suppliers.
There are a number of significant aspects to this announcement, according to AMR. First, Boeing's technical requirements for the tags used by suppliers are demanding: they must be passive, high-storage, metal-mountable, robust, and tested for changes in pressure, temperature, humidity. Such a tag has "not yet even been invented," says AMR. Given this, Boeing will single-handedly push RFID technology forward by effectively inducing the chip and inlay manufacturers to create a product that meets those specifications.
With respect to Boeing's suppliers, AMR's predictions are not unlike what has been witnessed in the case of mandated Wal-Mart suppliers. Achieving near-term, quantifiable ROI according to traditional models will be difficult. However, the initiative represents an opportunity for Boeing suppliers to forge a tighter, more lasting relationship with the giant company, who for most is probably a key customer. In the report's words: "By collaborating with Boeing from the start, the suppliers better position themselves as long-term partners rather than short-term providers. Long-term supplier relationships generate long-term profits." Furthermore, the sooner suppliers deploy RFID, the more prepared they will be for the inevitability of widespread adoption and the supply chain benefits thereof.
AMR's overall conclusion is a positive one for the industry. Essentially: Boeing's initiative will advance RFID technology by generating demand for more and better-performing product.
Read AMR Research report
