Supply Chain Management at Airbus- Implementing RFID Introduction Supply chain management has never been as challenging as it is today, where organizations must be proactive and always create arrangements to kill disturbances from their supply chain. The accomplishment of an association depends on the organization 's capacity to convey their items paying little mind to the circumstances. Visibility is basically the trackability of items or parts all through their stream from the producer to the last end of the line. It is about making accessible information that can be broke down to make suggestions and create systems to enhance a supply chain. Visibility has a few profits. For one, organizations can eliminate stock as they are better ready to respond to demand. Visibility is additionally progressively turning into leeway for organizations over contenders who are less ready to anticipate an approaching circumstance, for example, in times of characteristic calamities. This is on account of visibility empowers organizations to be adaptable in managing circumstances (Penfield, 2008). In past few years the RFID technology has evolved rapidly, specifically in the field of supply chain. The vital application of RFID technology to business issues and leveraging its information can possibly advance discriminating methodologies, upgrade business discernment, and enhance cooperation crosswise over commercial ventures. (Klein, 2006) Also, supply chains today are helpless against
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
Strong investment in Information technology to streamline information flows and product flows along supply chain(RFID, Retail-Link system)
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 2017 Target, Avery Dennison has announced a global Radio Frequency Identification (RFID) partnership agreement with Target Corporation, as part of Target's deployment of RFID technology to more than 1,600 stores to help maximize inventory availability and deliver an enhanced guest experience (Avery Dennison RFID announces Partnernship with Target , 2017). Boosted the company competitive priorities in Product and Value Flexibility, by providing an accurate picture of product availability, therefore improve customer experiences. Henceforth, improve the cost of inventories, stock mismanagement, and timely replenish of product.
PRADA has long been adopted management information systems into most of their business part including manufacturing, sales, and human resource management. PRADA has Group information technology director who primarily responsible for the management of the Group’s information technology system. In 2000s, by using radio frequency identification (RFID), PRADA tried to controls manufacturing system, inventory, warehousing, distribution, logistics, automatic object tracking and supply chain management. What PRADA expected from RFID technologies were improve the potential benefits of supply chain management through reduction of inventory losses, increase of the efficiency and speed of
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.
Lack of visibility and interoperability in the process often leads to massive inefficiency in the whole process. That is why complete supply chain visibility must be ensured.
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
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
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 technology can offer many advantages to suppliers, retailers, and consumers including “improved accuracy in managing inventory, improved visibility of orders and inventory, reduced costs for logistical operations, improved customer service, improved security, and improved efficiency of business operations” (Park et al. 2010, p. 684).
Over the last four years, I’ve delt a great deal with RFID supply chains, and have seen first hand the positive advancements that are made with them. If given the opportunity to lead this project with your company, I believe I can close the gap between Intel and it’s competitors.
• 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.