Advanced Technology And Supply Chain Management

1434 Words Sep 24th, 2014 6 Pages
Organization - wide common platform technological applications having lean methodologies of operations are highly appreciated by the firms nowadays. These technological solutions provide better planning of resources and optimizing the processes of the company and profit. The purpose of this research report is to explore one technology that has made a great impact on the supply chain and is increasingly becoming more popular. The Radio Frequency Identification (RFID) as an advanced technology in supply chain management is the technological solution most firms are looking at these days. RFID Technology is a smarter way to track shipments, time deliveries, and keep inventories which in turn makes operations faster and more efficient. …show more content…
2.2 Role of RFID in Supply Chain Performance

RFID has the potential to provide high levels of contribution towards the supply chain performance.
Supply chain process consists of manufacturer, supplier, warehouses, transporters, distributors, retailers and customers (Figure 2).

An effective and efficient supply chain management is one where there is a proper flow of information among the different levels of supply chain. If there is a gap somewhere in the chain, it affects the entire supply chain management and finally the company and its profits.
One of the major issues is that proper level of inventory has to be necessarily maintained at different levels of the supply chain. Issues such as excess inventory, stock outs, and loss of sales, wastage of material, theft, and safety among other factors may affect the effectiveness of the supply chain process and therefore each level should have a track of its own actual and expected stock and sales to meet the customer demand effectively and on time.
RFID technology is used to automate the procurement of the material and products of the distribution centres and stores which reduces time, money and complexity. By putting an RFID tag on a product, the users can track the product’s movement from the manufacturer to the customers. RFID system also helps in reducing inventory, reducing product cycle time and improving the quality of
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