IMPLEMENTATION ISSUES OF RFID IN SUPPLY CHAIN MANAGEMENT:
Introduction to RFID Technology:
Supply chain management a major sector in almost all the product and service based organizations mean that managing the flow of goods, cash and information internally or externally and within an organization or group of organizations that follow same value chain. There are many existing technologies and also emerging technologies in the field of supply chain management. The gist of the paper is Radio Frequency Identification (RFID) tags an emerging technology in supply chain management and how it can be implemented or developed more effectively so that there can be an increase in the efficiency of supply chain management system. These
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As they are thinner than a paper and smaller in size it becomes difficult for the consumers to remove these tags. Some RFID tags can be printed on the product and may not be removable at all. As they need not be swiped or scanned they can be read by any anonymous person with a tag reader can read data from your clothes or any consumer product or someone might approach you already knowing what you have in your pocket. There is also a risk of linking the RFID tag number of a particular product you bought from a store with your credit card details without your knowledge which is a high potential threat for highly sensitive personal information which may lead to credit card fraud who manages to read the data from the RFID tag or manages to steal RFID data from database of the store where you purchased the product.
This study gives an insight into the issues with application of RFID technology in administration of assembling and supply chain. In assembling, commonplace application focuses of RFID appear to be associated with different purposes in warehouse management, process administration, and supply chain management. Also, assembling tools and instruments can be controlled with the help of RFID. Supply chain management can likewise be seen on a bigger scale as life cycle administration, in which the item can be observed or controlled after it is conveyed to its last client. Right now,
However, it is important to mention about an active RFID technology in order to understand why it is not suitable for the case of the production in-house logistics. Active system provides constant visibility of inventory, they are placed in the zones wherever inventory needs to
In early 2004, the METRO Group (Metro), Germany’s biggest retailer, announced its upcoming radio frequency identification (RFID) technology rollout at 250 stores and 10 warehouses, in collaboration with 100 suppliers. The news echoed throughout the retailing community. Previous similar announcements by Wal-Mart and Tesco had made it clear that some in the industry believed that the new technology had the potential to improve the performance of retail supply chains significantly. Among the many potential benefits of this technology were reduced shrink,1 increased product availability, better data quality, and higher labor
Given the facts in the case and as outlined in more detail in this case study, it is our recommendation that Mierdorf and Wolfram move to the case level RFID tagging process. The improvements up and down the supply chain in accuracy, inventory control, reduced labor costs are enough to at least continue with the RFID
One of Walmart’s most recent applications of information technology is the use of radio frequency identification or RFID. These tags can be used for all sorts of applications, but in the retail industry this they are used to track packages or individual products from the factory all the way to the sell. The tag itself emits a small radio signal that a server picks up and uses to identify the tag. These tags are placed on the product or package after assembly at the factory. The RFID servers tells the computers when the product has been shipped out. Warehouses do the same thing to determine then the package is entered and when it leaves for the store. At the store, computers use the tags to make inventory easier for clerks and are usually taken off once the package is sold. In some cases the RFID label is sometimes used to see exactly where the package is in route while shipping, provided they have the proper equipment. Information technology has been instrumental in the success at Walmart throughout its history.
The researchers at the University of Arkansas noted a 16% reduction in out-of-stocks since Wal-Mart adopted the RFID system into its supply chain (Healthcare Purchasing News 2005). The study also revealed that EPC items were replenished three times faster than comparable items using standard bar coding system. Wal-Mart has been able to use the new system to reduce excess inventory with more effectiveness than the control stores (Healthcare Purchasing News 2005). To this day, using its detailed supply chain management system Wal-Mart has been able to achieve respectable leadership in the retail industry.
tesco gains huge flexibility and performance by using rfid technology. similar and new technologies such as rtid (real time identification) can improve even exist benefits and solve problem out like
PRADA has long been adopted management information systems into most of their business part including manufacturing, sales, and human resource management. PRADA has Group information technology director who primarily responsible for the management of the Group’s information technology system. In 2000s, by using radio frequency identification (RFID), PRADA tried to controls manufacturing system, inventory, warehousing, distribution, logistics, automatic object tracking and supply chain management. What PRADA expected from RFID technologies were improve the potential benefits of supply chain management through reduction of inventory losses, increase of the efficiency and speed of
RFID Technology is increasingly being used all around us. Common uses include EZ Pass, Speed Pass and chips in pets. According to Technologies: RFID/ What is RFID? Radio Frequency Identification (RFID) is a generic term that is used to describe a system that transmits the identity (in the form of a unique serial number) of an object or person wirelessly, using radio waves. The three components of an RFID system are (1) the antenna or coil, (2)
RFID (radio frequency identification) is a new technology that threatens to take the place of bar codes in the supply chain world. The technology uses electromagnetic fields to automatically identify and track tags attached to objects. This innovation can provide many benefits in logistics and may revolutionize the entire industry. But, even though the technology provides many benefits it also has many drawbacks and may not be developed enough to become industry standard. The technology also may not be beneficial or cost effective for every business and will require a total overhaul of businesses infrastructure, which can be extremely costly. Furthermore, both bar codes and RFID technology have many pros and cons, also industry may not be ready to implement RFID into their infrastructure.
Strong investment in Information technology to streamline information flows and product flows along supply chain(RFID, Retail-Link system)
Airbus is a French company manufacturing civil aircrafts. The company produces and markets Airbus A320 and the world’s largest passenger airliner, A380 apart from several other models. My individual report discusses about the Radio Frequency Identification(RFID) implementation at Airbus and how much this improved the supply chain efficiency. The main intension was to continuously improve its supply chain by mastering the supplier’s approval and the surveillances of their manufacturing capabilities. To achieve this goal, Airbus developed a strategy based upon assessment of suppliers Quality Management Systems and their special processes by external bodies along with the use of international standards. The strategy needs to be deployed throughout the entire supply chain.
RFID tags are much more efficient than simple barcodes because of a few key features. Unlike barcodes, RFID tags do not need to be on the surface of the object. This means that the tag does not need to be subject to the elements. RFID tags can also be read much more quickly than barcodes. Where barcodes need to have a device pointed directly at them to scan them, RFID tag readers need only be within range of the transmitting signal. This allows scanning process to be much more automated. Finally, RFID tags can be read almost simultaneously (mostly due to the high speed reading and use of different wave lengths) (What is RFID, n.d.).
• 1. Become familiar with RFID technology and its potential uses in Harley-Davidson’s supply chain using the information presented in this chapter and information you obtain through the Online Companion links, your favorite search engine, and your library. In about 400 words, evaluate the advantages and disadvantages for Harley-Davidson of replacing its bar codes and scanners technology with RFID.
52. Study of impact of revolutionary technologies on inventory management: RFID, Inventory and Supply Chain Management
RFID tagging is an ID system that uses low-frequency detection device for the purpose of identifying and tracing. It includes the tag, the device which reads and writes and host system for the application of data collection, processing and transmission which relies on storage and retrieve data remotely using a tag or transponder [1].