RFID at the Metro Group
Mierdorf and Wolfram are preparing their report to the RFID steering committee next month and they have three options to recommend. They can: * Expand the scope of the current pallet level RFID rollout * Move to case level RFID tagging with the manufacturers currently engaged in pallet level rollout * Stop the expansion of the RFID and focus on traditional process improvement opportunities
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
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In addition, Metro estimated that with the increased accuracy of the cases shipped to the stores it would greatly reduce if not eliminate the need to send product back to the DC or worse, throw it out. Another beneficiary of the RFID tagging at the case level would be restocking at the stores. Due to the lag between products being received in the stock room in the mornings and the sales floor being restocked at night, the chances that the store would be under stocked were great. Using an RFID reader in conjunction with point of sale data, the store personnel would easily track inventory levels and restock more efficiently. The restocking efficiency was estimated to boost gross sales by .05% which would result in an increase in gross profit of €.05 per additional product sold.
Financial Benefits
The details and comprehensive analytics are within attachment #1. The attachment describes three main topics: 1. Hardware, Software, and Maintenance Expenditures 2. Pallet RFID Program Analysis 3. Case RFID Program Analysis
Within those analytics it provides much of the detail analysis that supports our recommendation. We will provide the following highlights; Hardware, Software and Maintenance Costs, Productivity and Shrinkage Savings, and NPV/IRR calculations.
Initial
I live close to a walmart in Burtonsville MD, so I decided to write this Paper on their Inventory System. Wal-mart, the wholesale retail monopoly, focused on developing an RFID-based electronic product code, or EPC. The electronic code would allow businesses to track shipments and inventory automatically through a system of tags and sensors. It was a potential replacement for the manual scanning of bar codes, a technology that itself revolutionized retail two decades earlier. Given the nearly non-existent cost of bar codes relative to RFID, several in the industry said, the EPC was a solution in search of a problem. Wal-Mart view RFID technology in their SMART system as a
The RFID system will open new sales opportunities to larger markets such as the Department of Defense (DoD) and Wal-Mart. Who are now demanding that RFID tracking as a condition of contracting.
INTRODUCTION: In June 2003 Wal-Mart first announced its plan to implement RFID technology in its supply chain by January 2005; this caught many of the suppliers unawares. Though the plans envisaged compliance from the top 100 suppliers, around 129 suppliers jumped into the fray, afraid of being left behind in the race. RFID technology was invented in 1969 and patented in 1973; after thirty long years WalMart has demanded its implementation. Expectations are high, unfortunately RFID technology is still in its infant stage.
The RFID market has continued to grow at a steady rate. According to a new RFID sector survey by IDTechEx Research, “The RFID market will reach $23.4 Billion in 2020. This includes tags, readers and software/services for RFID cards, labels, fobs and all other form factors - for both passive and active RFID.” (IDTechEx). RFID is a technology that will continue to play a critical role in a variety of industries as they both grow and develop.
Wal-Mart has already begun to implement the RFID system with a high degree of success
In past few years the RFID technology has evolved rapidly, specifically in the field of supply chain. The vital application of RFID technology to business issues and leveraging its information can possibly advance discriminating methodologies, upgrade business discernment, and enhance cooperation crosswise over commercial ventures. (Klein, 2006) Also, supply chains today are helpless against
Once a company decides to use RFID, the most important step in the process is being able to successfully gather the data and manipulate it into meaningful information. Doing this as effectively and efficiently as possible requires a proper RFID implementation, which for many reasons, can prove to be the most difficult stage of the entire process. A company new to RFID will find that many changes have to take place to make sure the implementation is as successful as possible. Ensuring a successful implementation involves changes in all fundamental areas of the company, including their systems and products (Zebra Technologies). While these changes will prove to be difficult, many companies find that they can conduct
In current era we have seen many implementations and changes which are globally used for logistics and implemented in several ways. In that RFID is one of the top implementing technologies in logistics. These are mainly used in the supply chain management and tracking persistence and different industries. In logistics management is to confirm the accessibility of resource at minimum cost for production. Make sure they deliver on time the products of low cost to the customer. Logistics is the process of strategically managing finding and storage of materials, part and complete inventory through organizational it’s selling channels in such a way that current futures profits are take advantage of through cost effective fulfillment order. We
• 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.
Radio wave technology has been used since the Second World War but the first application of modern RFID technology came in 1983 when Charles A. Walton received the first patent for his ‘Portable radio frequency emitting identifier’ (US Patent Office, 1983). Since Walton’s patent, modern RFID technology has evolved at a startling rate with “approximately 1500 RFID patents issued between 1997 and 2010” (Mehrjerdi, 2010). The impact RFID has had on global commerce has been wide-spread. Many major industries have found ways to implement the technology into their business practices. Examples include but are not limited to: manufacturing, logistics and inventory control, national defense and commercial farming (FDA, 2015).
This report will discuss what technology and innovation is and how important it is for firms to manage their technology to expand their growth potential. In addition to this, I am the current technology analyst at the Hunzal Logistics and Supply chain Management Company. The current technology we use to handle our logistics and flow of goods in our supply chain is the traditional barcode reader technology. This technology has been used for over 15 years now in Hunzal. The current CEO of Hunzal has seen discussion in the logistics and supply chain industry of this new radical technology known as the Radio Frequency Identification Device (RFID) and how it has benefited companies in significant ways. The CEO of Hunzal has given me the task to update him on the RFID technology. This report will investigate and propose how RFID is more beneficial than the traditional barcode reader system.
The purpose of this recommendation report is to determine what benefits radio frequency identification can add to our company. Many people think of RFID technology as a futuristic sci-fi way of tracking people and holding personal information. But RFID technology has become more common and has many applications this day in age. After researching the latest RFID technology, I have determined that it would help to cut costs in man hours and organizing products. We spend tons of money checking products and materials into inventory and tracking them through manual methods. Why do this when we can automate a system and cut that time to just a fraction of manual ways? My research has shown that many quality and efficiency leaders of the world have chosen to go to this system because of the benefits it provides. Right now we have ten technicians who receive completed outgoing products, count them, and input them into our inventory tracking spreadsheet. Now imagine one technician doing the same amount of work. They can walk up to a pallet of materials and can read what and how many products are on the pallet instantly. No counting, no sorting, and no manual adding of the materials would be required. In order to achieve this, we would need to do nothing more than buy RFID scanners, and add an RFID chip to the completed product.
The manufacturer puts the RFID tags having EPC’s on the products to facilitate better item tracking, creating history files and future use by other channel partners like inbound, outbound logistics at distribution centres, POS at retail stores etc. The EPC information on the tag is referenced by the manufacturers to link cartons and pallets for shipments, package sorting and Advance shipment notifications (ASN) to partners further in the supply chain. In the entire supply chain, RFID readers publish
RFID is being used in supply chain. It is used in movement of product. In 1999 Prof. David Brock and Prof. Sanjay Sarma had been doing some research for decreasing cost on RFID tags on all products that are made to track them through the
To deal with problems posed by supply chain issues, exceptional technologies are needed. One such technology is RFID which is an acronym of Radio Frequency Identification. RFID technology is a means of gathering data about a certain item and doesn’t need to see or touch the data reader. It uses the inductive coupling or electromagnetic waves. This technology has unlimited possibilities for connected devices around us right from goods, animals, gates, containers, machines even human are tagged through RFID’s. (ILIE-ZUDOR, 2006)