Study proves cargo security a financial incentive for importers

McLean, Va.-based consultancy BearingPoint says a study involving containers shipped from the port of Laem Chabang, Thailand to Seattle in September and October 2003—and a resulting cost-benefit analysis conducted on behalf of the U.S. Trade and Development Agency—found that companies importing goods into the U.S. could realize financial benefits by using RFID technology to secure, track, and manage their supply chains. Benefits cited include:

• Improved visibility for better predictability and timeliness of cargo shipments;
• Reduced costs related to emerging U.S. Custom's trade security measures;
• Reduced safety stock and inventory carrying costs from improvements in trade compliance and in-transit visibility;
• Enhanced customer service to sales channels and resellers;
• Increased profits from improved in-stock product rates; and
• Reduced incidences and direct costs of theft and pilferage.