Rfid And Its Impact On The Supply Chain Management System

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INTRODUCTION

Among all the technologies that have developed in the recent times, RFID has had the largest impact on the supply chain management system. RFID that stands for Radio Frequency Identification provides a real time tracking information of parts and products and is capable of maintaining it throughout the supply chain. This technology has proved itself as an efficient method to track the inventory and has a great potential in improving the supply chain management system as a whole. The information system of any supply chain should be effective and fluent; any communication gap can lead to huge losses. A prudent technology, one like RFID helps achieving these operations and helps reduce cost significantly.
Retailers like Wal-Mart,
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The components of an RFID system are the tag, the reader and the host computer system, which has the software that works as an interface between the data collected and storage device by converting the same into useful information. RFID has immense potential for all parties in the supply chain, to mention few:
1. In manufacturing the RFID provides with a detailed and automated surveillance of parts that are stored or are processed in the factory/ warehouse. The RFID not only detects parts but is also capable of keeping records of parts that have been defected or being sold. This gives an advantage to the factory owner to trace not only their useful parts but also parts that could potentially be harmful in the future.
2. In distribution of goods and parts the RFID helps by taking proper care of the inventory and their navigation so properly that it leaves no place for human interference. This in turn speeds up the shipping process without any/ minimum errors. Human interfered inventories frequently go through shortages due errors which the RFID system does not go though.
3. For retailers, the RFID plays the role of detector. It ensures the stocking, tracks the parts and also makes sure that if there is any theft or breakage it records it as well. Not just this, due to its integration with host computer system it accelerates
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