RFID
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Transcript of RFID
RFID
4.Conclusion2.What is RFID?
3. The impact of RFID on supply chain efficiency
1. Background
contents
Background
Wal-Mart Stores, Inc.
The top 100 suppliers must tag pallets and cases shipped to three Dallas-area distribution centers by January 2005.
Department of Defense.
Pentagon suppliers must place RFID tags on cases or pallets shipped to the DoD by January 2005.
Food and Drug Administration.
The organization recommends that all pharmaceutical producers, wholesalers, and retailers begin developing plans to place RFID tags on pallets, cases and unit items by 2007.
What is RFID?
Radio Frequency IDentification
•Tags•Readers
tag reader
tag
tag tag
tag
tag
Pallet with RFID tags
METRO FUTURE STORE
The impact of RFID on supply chain efficiency
Bullwhip effect
VMI
( Vendor-Managed Inventory )
Vendor
Retailer
Distribution center
store
Replenishment
InventoryLevels
Monthly or Weekly CycleReplenishment
Vendor-Managed Inventory
Store
Manufacturer
Shelf
consumer
Shelf
Shelf
consumer
consumer
Daily and Event-DrivenReplenishment
Replenishment
RFID based Real-Time Inventory and Demand Data
RetailerDistribution
Center
InventoryInformation
InventoryInformation
InventoryInformation
Real-Time inventory and demand information reported hourly or daily
Replenishment in a Consumer-Driven Supply Network
More accurate information
• Received at distribution center• Departed distribution center• Received at store• Departed store stock room (arrived at shelf)• Case (tag) destroyed
immediate benefits
• Better control over overage, shortage, and damage claims management and the ability to better assign responsibility to the supplier, the carrier, or Wal-Mart
• Better control over product recall• Data that improves processes through collaboration
between Wal-Mart (retailers) and its suppliers
For the first time, quantification of lost sales.
In the long term, retailers and manufacturers can benefit from the RFID
Retailer benefits • Reduction in out-of-stock items• Store and warehouse labor reduction • Reduced inventory
Manufacturer benefits • Inventory visibility• Labor efficiency • Improved fulfillment• Improved customer service levels
RFID
Supply Chain Planning
planning moniter
Execution SystemsEvent Management
4. Act
3. Check1. Plan
2. Do
The closed-loop supply chain process
The ideal supply chain & pull supply chain
However• Replenishment from many resources
• significant economics of scale in manufacturing and transportation
The closed-loop supply chain process
Conclusion
• Allow real-time tracking of products, or at least cases and pallets
• Largely reduce lost sales • Consumer-Driven Supply Network
Reference:
CLAUS HEUNRICH, RFID and beyond-growing your business through real world awareness, WILEY
