Radio Frequency Identification is the use of radio frequency waves to remotely identify material. It is primarily used in supply chain management but can be used in other areas. Used as a tracking tool, RFID keeps track of material in the transportation pipeline enabling users to have real time tracking information throughout the entire shipping process. Inventory management is another important logistics element that is enhanced with the use of RFID. The goal of an inventory manager is to maintain a 100% inventory and RFID makes the process more efficient. RFID allows the user to perform inventories with ease and accuracy while reducing the number of people needed to perform the inventory. In addition to assisting with inventory RFID …show more content…
What about that warehouse worker standing on the loading dock or that grocery store worker with the scanner in his hand? More than likely the average person has never given those evolutions a second thought. The unassuming eye merely sees a truck on the interstate or a stock boy stocking shelves. These are just a few functions of the supply chain within the logistics industry and they happen every day. Logistics is a massive operation with many moving parts like inventory management, transportation, shipping, tracking and visibility. One of the main purposes of logistics is to get the right item to the right place in the right amount of time. So that tractor trailer speeding down the highway is more than likely transporting supplies for a customer and likewise, that company is tracking their supplies that they are expecting. In the logistics world there is never a moment in time when something is not moving. No matter how big or small on the logistics spectrum there is always the potential for items to get lost, stolen, or even misidentified. . Inaccuracies such as this can make a company can be costly for a company. In an effort to minimize these potential losses companies adopt processes and procedures to assist. There are different systems available to assist but Radio Frequency Identification Technology is the best method to track shipments, manage inventories and maintain
Lately Conner and Martin have been working with “radio frequency identification” (RFID) technology. They have developed a detailed system designed to track inventory items using RFID tags embedded invisibly in products. This technology has numerous inventory
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
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
Wal-Mart currently has one of the most advanced inventory management systems due to their use of RFID tracking capabilities. Every product is equipped with a radio frequency identification tag, which identifies the location and type of product in the warehouse. As the product leaves the warehouses, there are readers in place at the door that automatically recognize which products are leaving and entering the warehouse. The benefit of this is that it limits the use of employees better employed elsewhere and has impeccable accuracy, much more accurate and faster than if employees were to take inventory. The service that our product provides is to take this current technology and to implement it at a grocery stores as well as retail in the
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,
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
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).
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.
Over the last few years the cost declines of Radio Frequency Identification (RFID) technology, combined with improvements in sensitivity, range and durability, have enabled widespread RFID use in the logistical planning and operation segments of supply chain management processes. Specifically, areas such as security and access control, tracking, and monitoring/management will strategically be enhanced from the use of this technology. An RFID tag consists of a microchip and an antenna, often in the form of a tiny ribbon that can in turn be packaged into many forms, such as a label, or imbedded in between the cardboard layers in a carton. On the microchip is stored information about the product that the tag is affixed to, which can then be
RFID has been employed in various industries to keep tracking of their products. For example they can be installed in an automobile industry to keep track on the production throughout assembly. Similarly, RFID tags are now being used in the pharmaceuticals industry to keep track of medicinal items in warehouses and throughout the supply chain. The supply chain can often be complex in nature, with several data points as it relates to item movement from the original manufacturer to its final destination, the customer.
It provides accurate data regarding the flow of product to both retailer and manufacturer. This further enables the improvement of each stage of supply chain. Another alternative available is bar code but due to certain limitations, RFID is a better bet and hence the popularity has increased. The greatest use of RFID can be found in the area of supply chain management where the whole process can be automated and controlled.
These devices are imperative for global supply chains. The farther the goods are from the final endpoint, the riskier its arrival. Before RFID scans, supply chain managers took inventory weekly or monthly to track sales and supplies. Now, many companies like Wal-Mart track their products with RFID technology. The RFID readers’ purpose is to cross-examine RFID. Advantages and Disadvantages of GSCM