DoD Announces Radio Frequency Identification Policy
October 23, 2003

The Department of Defense announced today the establishment of a Radio Frequency Identification Policy (RFID). RFID technology greatly improves the management of inventory by providing hands-off processing. The equipment quickly accounts for and identifies massive inventories, enhancing the processing of materiel transactions to allow DoD to realign resources and streamline business processes.

Implementation of RFID minimizes time spent through the normal means of inventory processing. This technology allows the improvement of data quality, items management, asset visibility, and maintenance of materiel. Further, RFID will enable DoD to improve business functions and facilitate all aspects of the DoD supply chain.

The new policy will require suppliers to put passive RFID tags on the lowest possible piece part/case/pallet packaging by January 2005. Acknowledging the impact on DoD suppliers, the department plans to host an RFID Summit for Industry in February 2004. The RFID policy and implementation strategy will be finalized by June 2004.

RFID policy and the corresponding RFID tagging/labeling of DoD materiel are applicable to all items except bulk commodities such as sand, gravel or liquids.