This preview shows page 1. Sign up to view the full content.
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
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.
- Spring '08