Advantages And Disadvantages Of RFID And Radio-Frequency Implementation

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.

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.

RFID systems are currently being used in manufacturing plants to track parts, stay informed of work in progress, reduce product defects, increase throughput, and manage production of given products. Big name retailers such as Best Buy, Metro, Target, Albertson’s, Hewlett Packard, and Wal-Mart are leading the way in implementing RFID systems. These retailers recognize the need to improve inventory efficiency, ensure products are available to customers as needed, decrease theft, and cut down on costs associated with tracking and processing inventory.

The RFID is considered a significant improvement over the conventional barcode, which needs to be read by scanners in "line-of-sight" fashion and can be stripped away if the paper product labels get ripped or damaged. RFID can also facilitate inter-organizational E-commerce initiatives such as continuous replenishment or vendor-managed inventories (Smaros and Holmstrom, 2000).

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.

Historically, the advent of innovative, influential technology has reformed our lives in post-industrial America, creating new amenities on hand, along with altering conventional laws governing this facet of modern living.  The revolutionary and global capability of telecommunications has shaped new means for dealing with information, and changed the role of a private citizen among this new technology.  Traditionally in America, private citizens have been separate from government or public involvement in personal matters such as identity, and unique characteristics defining that identity.  Lately, radio frequency identification (RFIDs) is an upcoming method for tracking objects or even

RFID, Radio-Frequency IDentification, small electronic devices contained small chip and an antenna, work and have the same purpose as a bar code or magnetic strip. Many businesses involve RFID technology in their functioning, including from recently pharmaceutical industry. In April 2017, RFID Journal published article about drug retailer Drugco Discount Pharmacy in North Carolina that emphasizes using of RFID during the process of customers’ prescription drugs pick up. Design of the system, known as HangRx p-link, eliminates loosing time for drugstore workers while trying to find particular bag of prescription for the customer. “By using passive ultrahigh-frequency (UHF) RFID, the system instead triggers a light stick to illuminate inside in a clear, plastic, hanging bag, leading workers to the right medication” (RFID Journal). Drugco Discount Pharmacy, first drugstore in the U.S. that uses HangRx p-link from October 2016, saved 10 hours of daily labor time with implementation of this technology.

Another important fact is supplier involvement with RFID implementation. Walmart’s top 300 suppliers are required to put the tags on products, if they want to conduct business at Walmart. The average cost per tag is less than 20 cents. Supplier’s using the tag’s benefit by communicating immediate information to the retailer and product manufactures giving Walmart the competitive leverage in retail industry by inventory control. RFID implementation benefits the entire logistics operation and supply chain management.

RFID provides and enhancement to total asset visibility. Although RFID only reports the last position of an asset meaning it isn’t a real-time reporting system but it does establish that the unit is on its way. RFID will replace barcodes and when fully operational the RFID tag will not need people to capture and record inventory data that are associated with repair parts that move through the DoD supply chain. RFID will reduce labor requirements to free up military personnel to concentrate on other critical task but it will also improve accuracy and make it possible to find a part in the DoD supply chain at any given time.

RFID, or radio frequency identification, is the new system that is replacing the use of barcodes. RFID tags allow users to more quickly obtain information from the object that the RFID tag

Over the years, RFID has gained a high level of popularity and recognition. Due to the diversity of its application, the technology has really drawn the attention of investors especially in manufacturing, transport and logistics, hospital and health care and other commercial industries.

RFID technology is not only used at gas stations, restaurants, and department but also at

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

Radio-frequency identification (RFID) is the remote utilization of electromagnetic fields to exchange information, for the reasons of consequently recognizing and following labels joined to protests. The labels contain electronically put away data. RFID utilizes Radio frequency to distinguish and track "labeled" things. This information is then gathered and transmitted to a host framework utilizing a RF Reader. The data transmitted by the tag may provide identification or location information, or specifics about the product tagged, such as price, color, date of purchase, etc.

• 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.