Effectiveness and Efficiency of RFID in Supply Chain Management
Read this article. Sixteen different types of supply chains are presented in Figure 2. Select one type from the High Complex / High Business Impact quadrant, what are some benefits and challenges associated with it?
Introduction
The applications of Radio Frequency Identification (RFID) and Electronic Product Codes (EPC) in supply chain management have vast potential in improving effectiveness and efficiencies in solving supply chain problems. EPC is the concept of storing product identification on chips no larger than a grain of sand, then placing these chips on tags, which in turn are placed on objects so they can be uniquely identified. RFID technology can track inventory more accurately in real time resulting in reduced processing time and labor. There are many applications and possibilities for RFID/EPC as these objects in motion are traced throughout the supply chain. The complete visibility of accurate inventory data throughout the supply chain from manufacturer's shop floor to warehouses to retail stores brings opportunities for improvement and transformation in various processes of the supply chain. RFID technology can help a wide range of organizations and individuals such as hospitals and patients, retailers and customers, and manufacturers and distributors throughout the supply chain to realize significant productivity gains and efficiencies.
In this study we try to answer the following questions: (1) what processes in supply chain will be affected by RFID technology and where this technology has the potential of creating the most business values? (2) Given the integrated and inter dependencies of supply chain processes, what would be the capabilities of RFID in providing security, privacy, and integrity of processes while facilitating sharing information with customers and suppliers, developing strategic alliances and ultimately gaining competitive advantage? (3) What are the challenges and recommendations in adopting and implementing RFID technology in supply chain?
We examine the fundamental components of RFID technology as parts of a comprehensive supply chain strategy that directly support the effectiveness and efficiency of supply chain management. We will examine appropriate business processes in supply chain affected by RFID Technology and will identify processes where RFID plays a critical role in creating the most value. In particular, we highlight the many business values and strategic benefits of RFID technology as well as the many challenges and recommendations in adoption and implementation of the technology in the context of integrated and inter dependencies of supply chain processes.