RFID ASSIST SUPPLY CHAIN

MANAGEMENT SYSTEM

Name: Wu Sir, LowCourse: Business Logistics

OutlineRadio Frequency identification (RFID) and Supply Chain Management (SCM)

Benefits of RFIDbetter inventory controlminimise product shrinkagereduce cost

Challenges of RFID

Conclusion

RFID and SCM

Transmit data and remotely storing

Microchip stores data, antenna transmit information

Reader interact with middleware

Middleware throughout manufacturer, retailer

Benefits of RFID application for SCM: Better Inventory Control

Process automation in shelving, cross-docking, and picking

Update inventory quantitiesTrack inventory visibilityReduce out of stock Reduce holding of obsolete inventoryLower safety stocks

Benefits of RFID application for SCM: Better Inventory Control

Benefits of RFID application for SCM: Product Shrinkage

Constantly issue, especially for the high volume products

Able to control the movement of goods

Improve securityPrevent theft

Benefits of RFID application for SCM: Cost Reduction

Potential return on investment (ROI)

RFID automated data capture

Cut down labour operating costReduce claims and deductions cost from customersOut-of-stocks costLogistics cost

Benefits of RFID application for SCM: Cost Reduction

For example Wal-Mart Invested $3 billion

in the system. Save

approximately $8.35 billion annually

Challenges

Change business processes

Cost

Tag readability and reliability

Conclusion

RFID technology assists SCM in a wide range of organisations

Accomplish greater visibility and efficiency

Collaborative environment

Challenges constrain

RFID is more than a technology, potential return on investment

RFID enhancement in the future assists demand and supply

Thank you! Any Questions?