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RFID Impacts On Supply Chain Managements

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by

Makram Makkawi

on 26 December 2012

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Transcript of RFID Impacts On Supply Chain Managements

Definition

RFID is a technology that uses radiofrequency waves to communicate between a reading device and a small electronic tag without human intervention.
It has been widely adopted in supply chain management for better track and trace the product movement RFID component using RFID in SCM -Inventory Control:

a)Reducing product shrinkage.
identify items when employee pass the portal without being checked out this has positive impact on reducing lost in retailer.

b)Improve delivery process
It is helpful in tracking and tracing the product

c)Help locate misplaced items.
Identifying items that has been moved from one rang to another within the retailer’s warehouse.

d)Durability of RFID against external environment elements.
This feature is important for the inventory that stored outside the warehouse. - Helps to ensure timely and accurate information for invoicing, purchase order payments.
By tracking goods more flexibly, companies can easily and more accurately detail what has been sold in the last business days.
Warehouses can improve and control their forecasts for what inventory is actually needed.
- It helps to reduce inventory errors and ensure that the inventory reported is really available. Impact of RFID on Warehouse RFID impacts on information/data flow: -Improve visibility and transparency between parties:
- Improve operational performance and effectiveness.
- Better dealing with demand fluctuation.
- Faster access to the data shipments such as Airbus firm. - Improve accuracy in sensitive businesses:
Prevent product counterfeiting in industries like pharmaceuticals:
- medicines will be rejected if any missing data during transmission flow between SC parties. RFID vs. Barcode Researchers combined RFID technology with other continuous tracking systems:

- Global Positioning System (GPS).
- Global System for Mobile communication (GSM).
- EPCGlobal network.
In order to gain information about shipments from a wider distance. Thank you for your consideration
Full transcript