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Positive ID

Trouble tracking inventory? Tag it like a wild animal.

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This story appears in the December 2001 issue of Entrepreneur. Subscribe »

Expect Radio Frequency Identification (RFID) to revolutionize your inventory-management system, says Luke Hughes, director of research for consulting company Accenture.

It works this way: Tiny tags with built-in radio transmitters are put on items you need to keep tabs on. Then, when you want to locate a specific item or take inventory, simply click a button-located on a Palm, a cell phone or another device that's been interfaced with the system-and find out exactly how many items you have and where they're located.

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