Today, most RF tags can be read only when they are in close proximity to a scanner. Such technology has many applications. For instance, when a delivery truck breaks down in a remote location, its cargo can be identified and, if necessary, a particularly urgent item can be located, retrieved and sent on its way by the nearest available backup vehicle, summoned of course by the same seamless tracking system. The RF tag can, in effect, replace labels or bar codes, although bar coding, being cheaper, still has many uses. RF systems are remarkably accurate, achieving error rates of one in ten million and better, so that suppliers can deliver parts to an assembly line at exactly the moment they are needed.
Information sharing is crucial.
The assembler creates a schedule based on demand and then shares the schedule with suppliers. Some shippers have taken on the additional role of not just delivering parts but actually installing them, as in the case of fenders installed on automobiles as they roll down the assembly line. Often, product cycles are now less than one year, so speed to market is vital. Thus, The New York Times notes that the Internet has accelerated the business cycle for chip makers, computer developers and software designers of Silicon Valley. When software had to be boxed and shipped, a developer might take two years to update a program, but as more software is distributed via the Internet the race is on to release new versions of a product every few months.