The term Supply Chain is generally used to describe the all of the possible processes which are involved in the flow of goods starting with the raw material supplier, and ending with the customer. This includes the processes of manufacturing, distribution and transportation to the end user or consumer. Supply chain management not only involves all of the steps mentioned above, but also affects other company activities such as marketing decisions, fulfilling customer demand, and even general corporate strategy or goals. Managing a supply chain has typically been considered to be a complex and intensive process, and many methods have been developed over the years in an effort to deal with supply issues related to the logistics involved in the production and distribution of goods.
Radio Frequency Identification (RFID) has become widely accepted as an instrumental tool in supply chain management. In addition to being a replacement for barcoding technology, RFID provides real time information, making the supply chain considerably more precise and improving the overall efficiency and reliability of the entire chain, including administration and planning activities.
In addition to supply chain management, there are many areas where the implementation of RFID technology can provide significant benefits such as inventory control and tracking, access management, toll collection and payment systems and even the tracking of people or animals. Examples of the latter include RFID tags
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.
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
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,
Radio Frequency Identification RFID is an established data-carrying technology used throughout industry. Data relating to an item is stored on a tag, which is attached to the item. The tag is activated by radio waves emitted from a reader. Once activated, the tag sends data stored in its memory relating to the item back to the reader. This data can then be shared between organizations and trading partners via the EPCglobal Network in a secure manner.
Would RFID work to track Products? Well, Bar Codes require a line of sight, so a person(s) with a bar code reader has to get right up on the bar code and scan it. When you are thinking about a supply chain, somebody in the warehouse would have to look at every single case. With RFID, all of the cases on the pallet would be picked up by a single swipe of a reader, even the ones
In order to clarify what savings RFID can provide for an organisation currently utilizing outdated, inefficient logistics technologies, these time savings should be used, along with some general assumptions, to project indicative cost savings. To facilitate analysis of the labour cost savings associated to implementing RFID processes to an asset tracking context, the life cycle of a typical asset is considered. The different types of assets and their individual characteristics are ignored to simplify the analysis. In order for this document to provide useful figures for a wider range of customers, a basic logistics department with varying asset levels and traffic will be analysed. Some general assumptions are listed: Average warehouse worker works a 38 hour week and earns a $60,000AU salary. Number of assets to be tracked: o 10,000 o 20,000 o 50,000 o 100,000 Each tagged asset follows an assumed asset life cycle. Numbers of reads associated to each task: o Asset Life – 3 years o Initial Deployment of Asset: Manufacturer applies RFID tag to asset Received to Warehouse Stock 2 reads – 1 read into warehouse door, 1 read onto correct shelf/area Distribution to a Particular Building/Floor 2 reads – 1 read out of warehouse
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.
Harley-Davidson (H-D) and other companies that have many manufacturing plants or production units and various dealerships may consider implementing RFID technology as a means of increasing the efficiency of all parts of its supply chain. An abstract from Columbia Electronic Encyclopedia describes Radio-frequency identification (RFID), as a technology that uses radio waves to transmit data and uniquely identify an animal, person or thing. This case study looks at the potential use of RFID technology to replace bar codes and scanners in Harley-Davidson supply chain. It indentifies some pros and cons of its implementation and addresses the question – What are some of the issues Harley-Davidson will face in
Wal-Mart uses RFID technology to ensure a timely delivery of its products to the customers. RFID technology has assisted the company to adjust its shipments and re-stocking of inventory. RFID tool that is a part of knowledge management has reduced the delay between customer orders and shipments (Bidgoli, 2010). The company is evolving and growing after using knowledge management tools like RFID. Through the use of RFID, the company has developed competency required to survive in the uncertain
• 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.
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.
RFID has been used as an eventual successor to the barcode for tracking an individual unit of goods. RFID does not require direct line of sight to read a tag, and information on the tag is updatable. An RFID solution consists of four parts: the tag, reader, communication network and RFID software. The tag consists of a computer chip and an antenna for wireless communication with the handheld or fixed-position RFID reader, and the communication network connects the readers to transmit inventory information to the enterprise information system. The RFID software manages the collection, synchronization and communication of the data with warehouse management, ERP and supply-chain planning systems and
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.