Supply Chain Management Definition and Solutions

In other words as rfid tec hnologies in the s upply c

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: mbers that will have to be s tored, trans mitted in real-time and s hared with warehous e management, inventory management, financ ial and other enterpris e s y s tems . In other words , as RFID tec hnologies in the s upply c hain s pread into the operations of more manufac turers , parts s uppliers and retailers , they will trans form the s upply c hain as we k now it today . Another benefit of RFIDs is that, unlik e barc odes , RFID tags c an be read automatic ally by elec tronic readers . Imagine a truc k c arry ing a c ontainer full of widgets entering a s hipping terminal in China. If the c ontainer is equipped with an RFID tag, and the terminal has an RFID s ens or network , that c ontainer's whereabouts c an be automatic ally s ent to W idget Co. without the truc k ever s lowing down. It has the potential to add a s ubs tantial amount of vis ibility into the ex tended s upply c hain. Right now, the two bigges t hurdles to wides pread RFID adoption are the high c os t of building the infras truc ture to manage RFID data and a lac k of return on inves tment (ROI) for many mids iz e and s mall manufac turers work ing in today 's s upply c hains . What is the impact of re sponsible sourcing, e nv ironme ntal sustainability and the "gre e n" mov e me nt on the supply chain? If the tec hnologic al s ide of s upply c hain management was n't hard enough, the new "c orporate s oc ial res pons ibility " (CSR) movement ins ide 21s t c entury organiz ations and IT departments adds another lay er of c omplex ity . Broadly defined, CSR initiatives for c ompanies inc lude s uc h s trategies as being able to s how environmental s us tainability (i.e. reduc ing the c arbon footprint), res pons ible s ourc ing from a wide range of global s uppliers , and how "green" an organiz ation is . So how does that affec t s upply c hain management? Vis ibility . In order to prove that a c ompany has http://www.cio.com/ar ticle/pr int/40940 6/7 1/28/2014 Supply Chain M anag ement Definition and Solutions lowed its c arbon emis s ions , is n't dumping haz ardous materials into rivers and does n't buy its materials from s uppliers that employ underage work ers , c ompany leaders need to be able to gain ins ight into and trac k the ac tions of their s uppliers , and their s uppliers and their s uppliers —all the way down the c hain into s ome good and not-s o-good parts of the global ec onomy . This ability als o bec omes c ritic al when tainted goods need to be identified and found quic k ly in a s upply c hain, before the goods s pread throughout a c ountry 's population. W al-Mart announc ed in fall 2008 that all of its s uppliers —inc luding the thous and loc ated in China— would have to be in c omplianc e with laws and regulations relating to rigorous s oc ial, environmental and en...
View Full Document

This note was uploaded on 02/03/2014 for the course BADM 350 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

Ask a homework question - tutors are online