Supply Chain Management at Airbus - Implementing RFID Technology

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Introduction Contd...

In April 2008, Airbus, a subsidiary of European Aeronautic Defence & Space Company (EADS), had signed a multi-million dollar contract with IBM Corporation5 and OATSystems6. As per the contract, the two companies were to help Airbus set up the radio frequency identification (RFID) system that would streamline its supply chain and manufacturing operations. Airbus expected significant gains from what was touted to be the world’s largest RFID-enabled project, including greater accuracy and automation of its supply chain as well as reduced supply chain costs. Airbus was the world’s leading aircraft manufacturer in 2009 going by the number of aircraft delivered during the year.

The company had been using RFID in its operations since 1997 but on a lower scale and targeted at improving its internal processes. In the mid-2000s, Airbus started using RFID technology more widely, starting with its spare parts supply chain...

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5] IBM was incorporated in 1911 in New York as the Computing Tabulating and Recording Company. In the fiscal 2008, the company recorded a profit of US$ 15.94 billion on revenues of US$ 103.63 billion. As of 2009, the company provided IT services, application services, consulting services, outsourcing services, and products such as servers, systems, workstations, etc.

6] OATSystems is a private company, which was acquired by Checkpoint Systems in June 2008. It has provided RFID-enabled solutions to several organizations in consumer goods, retail, and industrial markets. The company is headquartered at Waltham, Massachusetts, and has offices in London, the UK, and Bangalore, India.

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