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?
Methodology
In exploring the effectiveness and efficiency of
RFID applications, we consider the eight key processes that
make up the supply chain management process. These processes provide a
framework for various aspects of strategic and tactical issues present
in the management of the supply chain. These eight processes and their
functions are described as follows:
(a) Customer Relationship
Management: Provides structure to customer relationship and how such
relationships are developed, maintained, and managed. Identifies target
customer groups as part of the business mission and develops agreements
with key accounts. Performance reporte also measure profitability and
financial impact for key customers.
(b) Customer Service
Management: Provides customer information such as shipping dates,
product availability, and real-time information between customers and
the firm.
(c) Demand Management: Balances the customers'
requirements with the firm's supply capabilities. This would include
forecasting demand and managing the demand in production, procurement,
distribution, and in all other outputs of the company.
(d) Order
Fulfillment Management: Provides integration of the firm's
manufacturing, logistics and marketing plans. This would require the
management of partnerships maintained by the company to meet customer
requirements.
(e) Manufacturing Flow Management: Helps to
manufacture products and establishes the manufacturing flexibility
required to service target markets. Requires management of product flow
and maintaining the flexibility established.
(f) Supplier
Relationship Management: Defines how a company interacts with its
suppliers. Similar to customer relationship management, partnership
management is required to develop key relationship with core suppliers
potentially providing a competitive advantage.
(g) Product
Development and Commercialization: Provides the development of new
products by integrating customers and suppliers in reducing time to
market. Timely development of new products and services are keys to
firm's success.
(h) Returns Management: Provides a critical
component of sustained competitive advantage forthe firm. Allows firm to
monitor productivity improvements and identify valuable projects
related to products or services.
Out of these eight processes, we
have chosen and identified four processes that include demand
management, order fulfillment, manufacturing flow management, and return
management where RFID plays a critical role and creates the most value.
Keen and Mackintosh introduce "process freedom" as those processes
with the ability to add value along the entire supply Chain by enabling
the mobility of critical elements. These critical elements are business
activities, people, information, documents, and communications that are
needed for a more effective business process design. Angels argues
that RFIDs hold the potential to provide significant "freedom" that will liberate considerable human labor from certain workflows, as well as
facilitate the possibility of making information visible to all
participants throughout the value chain.
We will emphasize on
business values and strategic advantages of RFID technology as well as
the challenges and recommendations in adoption and implementation of the
technology particularly when a company extends its supply chain to
upstream suppliers and downstream customers, as their external
integration needs to gain in capacity planning and in efficiency.