If the military recognizes the huge return on investment (ROI) of UID, it stands to reason that contractors who are implementing UID should be able to reap similar benefits on a smaller scale. It’s time to get creative and put those UID’s to work. Here’s what the DoD has discovered:
In a June 2010 report, “Implementation of Item Unique Identification in DoD Logistics Processes,” the Logistics Item Unique Identification Task Force presented findings that conclude, among other points, “Investment of $7 billion will ultimately yield $3-5 billion in annual benefits, for an estimated $44 -$66 billion over the next 20 years.” A significant ROI!
The report goes on to highlight three key value chains where UID will have maximum benefit:
- Product lifecycle management
- Intensive item management
- Property accountability
Fourteen use cases are cited from the Army, Navy, Air Force and Coast Guard, across these three areas. Time and again the payoff from UID – strict accountability and control of assets, improved readiness and item management, improved in-transit visibility, reliable data, counterfeit item control, increased inventory speed, predictive maintenance, warranty management, etc. resulted in enormous reductions in both labor costs and DoD physical inventories.
How much would you save by tightening asset management in even one of those areas?