PeopleSoft Inc. on Monday launched technology that supports the use of radio-frequency identification tags within manufacturers' supply chains.

The business software maker showcased its RFID technology for its Enterprise and EnterpriseOne product families at the National Manufacturing Week 2004 conference in Chicago.

RFID technology is being tested for monitoring pallets of finished goods as they move out of production and into a third-party warehouse for distribution. Pallet-attached RFID tags, which combine silicon chips and radio-frequency technology to track inventory, are scanned during storage, loading, and shipment. Identification and location information is fed into business applications, such as PeopleSoft's, as the tags pass across readers.

RFID got a big boost in the retail industry last year when Wal-Mart Stores Inc., the world's largest retailer, said it would require its largest suppliers to start using the technology in 2005. The Department of Defense has made a similar announcement.

PeopleSoft said its technology supports the requirements of Wal-Mart and the Defense Department.

Also at the conference, PeopleSoft unveiled new capabilities in its Supplier Relationship Management and Supply Chain Planning software.