Week 3 Case Study
• 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. The advantages associated with using RFID technology for supply management are clearly the reason why Harley Davidson would even consider implementing its use. According to the text, RFIDs can be read much more quickly and with a higher degree of accuracy than bar codes. Bar codes must be …show more content…
This could prove to be very beneficial as communications increase between Harley Davidson and their suppliers. In areas that barcode scanners have repeatedly failed, RFID technology would prove to be more accurate and efficient. The RFID tags can store data up to 2 KB whereas, the bar code has the ability to read just 10-12 digits. Some of the disadvantages of the RFID technology are that it is expensive to install. Small and medium scale enterprises find it costly to use it in their firms and offices. In the case of Harley Davidson, getting products from many different suppliers’ would mean that the tags may have to be installed in liquid and metal products. The problem is that the liquid and metal surfaces tend to reflect the radio waves, which makes the tags unreadable. The tags have to be placed in various alignments and angles for taking proper reading. This is a tedious task when the work involves a large organization like Harley Davidson. Another disadvantage of the technology is that interference has been observed if devices such as forklifts and walkie-talkies are in the vicinity of the distribution centers. The presence of mobile phone towers has been found to interfere with RFID radio waves. Wal-Mart, the retail sector giant, has installed billions of RFID tags in their products throughout the world and they have encountered such problems.
• 2. Compare and contrast the issues that Wal-Mart and other large retailers faced
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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.
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.
Using this wireless technology makes it harder to control the content viewed, especially when personal computers can access the network. RFID can typically be a more expensive technology than your normal barcoding system. You can choose between using active RFID tags or passive RFID tags. Passive tags are very similar to a barcode; however active tags can be activated to track movement and count in a quick manner. Active tags are more expensive, but certain types can be reused. RFID tags can also be larger than a regular barcode and can be more difficult to understand than a typical system. Also, “Some common problems with RFID are reader collision and tag collision.” (What is RFID?, 2012) These types of collision occur when multiple readers or tags are in one area making it difficult to pick up the correct signal.
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).
RFID data is visible and trackable across the supply chain and reduces scanning error, stockouts and the labour required to move inventory (Shin & Eksioglu 2014, p. 633). Importantly, as Concept2creation (n.d.) shows picking and scanning cartons from the cages is labour intensive and requiring audits. Alternatively, RFID transmitters on pallets and cages, can automatically be scanned upon receipt. Cartons without RFID can be placed in totes to be tracked internally (Michel 2014,
1.With today 's bar code technology, every can of Coke has the same UPC, or bar code number as every other can (a can of Coke in Toronto has the same number as a can of Coke in Topeka). With RFID, each individual can of Coke would have a unique ID number which could be linked to the person buying it when they scan a credit card or a frequent shopper card (i.e., an "item registration system")”(Katherine Albrecht and Liz McIntyre).
Today, RFID is used in retail, manufacturing, healthcare, agriculture, travel, entertainment, etc. RFID increases efficiency of operations, decreases reliance on manual process, improves asset visibility and traceability, reduces operation costs, and provides useful data for business analytics. There are many different reasons why companies and firms are beginning to make the switch to RFID, some examples are: automating inventory and asset-tracking in healthcare, manufacturing, retail, and business sectors; identifying the source of products, enabling intelligent recall of defective or dangerous items; prevent use of counterfeit products in the supply chain; improve shopping experience for consumers; provide visibility into the supply chain
Weaknesses involve high cost per unit and high RFID system integration costs, as well as low level of RFID technology understanding in the market. Opportunities for the RFID incorporate potential for replace of the bar code, increasing end-user demand for RFID systems and market potential in various businesses. Finally, treats involve customers concerns of privacy violation. After all, using of RFID system Drugco Discount Pharmacy improves overall efficiency of the company and on the same time customers’
Radio Frequency Identification Devices (RFID) have been used in the retail industry for more than fifty years as an inventory assessment application tracking product sales and distribution data for goods and services. Current trends of RFID for this industry have been favorable for hi-tech state-of-the-art industries, yet in the past years to 2014 device prices have fallen at an estimated average annual 5.3% primarily due to its characteristic as a "throwaway" inventory or control device. This market segment uses tags or labels, which are scanned and ultimately leave the store with the consumer, eventually disposing of the empty carton or used product. Retailer’s using this application method require multiple components and suppliers are
RFID was invented in Soviet Union in 1945 by inventor Leon Theremin. The main use for RFID during 1945, was to track audio information and sounds to identify if aircrafts was friend or foes of the Soviets in World War II. Once the World War was over, similar technology started to be developed such as IFF transponder, Automatic Identification and Data capture (AIDC), and Passive Reader Active Tag and much more. In modern times, RFID is used in many ways, for example in keep track of good in stores, collecting toll payments without contact, and keep track of bagging at the airport. Have you ever bought an item inside a store and wondering what happens when the cashier scans the barcode? This is RFID’s Active Reader Active Tag at work, it’s a system that use tags to transmit signals and reply once the information is received from the item scanned. In addition, Passive Reader Active Tag (PRAT) is often used in stores as well by overnight stockers and inventory staff. PRAT allows the user to scan barcodes to keep track of inventory in store, as well as order inventory. RFID has increased in applications outside of retail store chains many common ones such as badges need to access building doors, lock on newer vehicles car doors and commutation devices.
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
The cost saving gained from RFID tagging will continue to increase given that Zalora Singapore is expected to grow, and by reducing wrong items being delivered and more efficiency, it can gain a larger market share in the internet retailing industry in Singapore. Furthermore, the extra profit can be used to fund expansion in other parts of Southeast Asia and the same system can be implemented in other markets given that RFID tagging and reading is a relatively simple IT solution to implement.
Barcoding is governed by Universal Product Code UPC whereas RFID is governed by electronic product codes EPC. In its evolution Barcodes were categorized as 1D, 2D and 3D with increasing capacity to store information like manufacturer, product type, batch number etc. Similarly RFID has Active and Passive tags that are being chosen according to the necessity and level of security. An Auto-ID system implementation to a warehouse or a facility takes into account strategic,