Nov 21,2006__Radio Frequency Identification (RFID) technology could be the answer to reducing billions of dollars of waste that affects suppliers of perishable goods in the US, according to new research.

The figure stands at $35 billion (£18.4 billion) for waste in the perishables sector and in order to reduce this and thus improve supply chain management, Deloitte Consulting LLP along with the University of Arkansas' RFID Research Center looked into RFID solutions.

Wireless and sensory technology was tested in relation to optimising temperature within the pallets that store perishables and have been hailed for their positive impact in addressing problems of over-heating while food is in storage.

Research discovered that the so-called cold chain could see an optimisation of quality, an increase in supply chain management efficiency as well as increased savings due to waste decreasing and RFID technology has already been proved a success in asset tracking processes.

"Loss and damage of perishable goods during storage and transportation is a substantial global issue, with some industry sources estimating that losses of up to 33 per cent on perishable freight are common," remarked Doug Standley of Deloitte Consulting.

The RFID Research Center focuses on many divergent areas such as retail, supply chain, computer science and industrial engineering and its aim is to spread knowledge of RFID technology and how it can impact on a business.