SAP Embeds RFID Functionality In Software 2

SAP has built into its warehouse- and logistics-management software new functionality that lets the applications understand and act on radio-frequency identification data.

The built-in RFID support means the applications can automatically handle the longer codes that make up the industry-standard electronic product codes, the unique identifiers that Target, Wal-Mart, and other retailers use to distinguish products as part of their RFID mandates. The feature is part of mySAP Supply Chain Management 4.1, the latest version of SAP's supply-chain management apps.

The RFID capabilities could help sway companies to purchase SAP's warehouse-management software, says Mike Dominy, senior analyst at the Yankee Group. "Companies are still analyzing it, but the fact that SAP has incorporated RFID capability native to its supply-chain apps is incredibly important to any of the suppliers to Wal-Mart, Target, Albertsons, and others that have RFID mandates."

SAP also has added to the version of mySAP what it calls responsive replenishment. The capability is geared toward meeting the needs of consumer packaged-goods companies that want to use and act on real-time sales data so replenishment is based on actual demand rather than forecasts.