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Adaptive RFID, Inc. has provided the following information for your benefit:

Phase 2 expansion of the DoD's RFID compliance requirement has impacted 5-6 times the volume of DoD contracts vs. the same period in Phase 1. This reflects the expansion of affected supply classes going to all major receiving locations world wide and a growing list of tactical locations. It also reflects new requirements for DoD procurement officers that strongly discourage awards to non-compliant suppliers. As such, you must anticipate being impacted by compliance requirements in this FY 07 procurement cycle, and you must understand the full scope of DoD requirements.

You must understand that RFID is part of decade-long strategic initiative to permanently convert suppliers to a more sophisticated and automated electronic supply chain. DoD suppliers must now electronically submit RFID Advanced Shipment Notices (ASN) to the Wide Area Work Flow (WAWF) and use the WAWF for electronic invoicing (again requires RFID data). The DoD requires exacting use of RFID technology to automatically determine -- at the receiving dock -- if it will immediately trigger payment for the 'perfect shipment' (down to exact case-pallet associations), or route it to the problem process (complete with payment delays, retagging fees, and corrective actions).

You must understand the largest cost component of RFID/WAWF compliance is labor, and rudimentary 'slap-n-ship' processes stick suppliers with high labor costs. As RFID case volume grows, shop floor inefficiencies, and labor costs (for quality control and e-business) quickly erode contract profitability -- requiring duplicate spending for better compliance capabilities.

To succeed, you must avoid wasting money on rudimentary "slap-n-ship" compliance procedures that can only damage profitability or competitiveness. You can implement efficient, quality-controlled compliance procedures that: deliver a lower total cost of compliance than 'slap-n-ship', reliably trigger accelerated payment, and strengthen your DoD vendor scorecard. That's how we define "winning compliance" -- maintain or increase operating efficiency, profitability, and DoD value.

AdaptiveRFID is uniquely distinguished in our ability to help you implement winning RFID compliance capabilities. We are nationally recognized for RFID implementation best practices, we specialize in rigorous DoD requirements, and we are certified at the highest levels by leading RFID equipment vendors.

• Our experts provide industry-leading knowledge of RFID implementation best practices sought by Information Week, RFIDinsights, The Advisory Council, APICS and Institute of Management Accounting, EPCglobal 3-Tier Industry Work Group, Larstan Business Reports.
• Our customers include nationally recognized companies with sophisticated distributed operations, specialized RFID tagging challenges, concurrent DoD IUID requirements, and commercial compliance expectations.
• Our complete RFID compliance packages are the most highly optimized solutions for achieving winning DoD and commercial RFID compliance capabilities with maximum labor efficiency and QA controls.
• We minimize the time burden on your staff, and don't disrupt operations at your shipping facilities.

To fully understand the quantitative impact of DoD compliance, request our RFID-IUID Planning Questionnaire. Using this valuable resource, we will thoroughly analyze your business situation and provide a customized proposal that fully reveals the operational and cost impact of compliance - and the kind of compliance solution that will help you preserve your profitability and value.