Short Term RFID can improve supply chain performance through asset tracking

Short term rfid can improve supply chain performance

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Short-Term : RFID can improve supply chain performance through asset tracking, product origin tracing, and product recall. Long-Term : Collaborative use of RFID information can help supply chain partners put the right item in the right place at the right time and for the right price. And demand-driven, product fulfillment systems can link consumer behavior back into inventory planning, and logistics. (Intel Corporation, 2004a, b). Sabbaghi and Ganesh 2008, explored the effectiveness and efficiency of RFID applications and identified four key processes where RFID creates the most value in the management of the supply chain. Considering the ever increasing value of sharing historical data and forecasts among supply chain partners, a fifth process,
Mohsen Attaran Critical Success Factors and Challenges of Implementing RFID in Supply Chain Management Journal of Supply Chain and Operations Management, Volume 10, Number 1, February 2012 150 “Supplier Relationship Management,” has been added to this list. These five processes along with the benefits gained from RFID technology implementation are discussed below: I. Demand Management - One of the challenges in demand planning is a lack of accurate, timely, and reliable data. RFID can produce accurate and timely information related to the inventory of work-in-process, in-transit, and finished goods. Timely data regarding market demand provides support for accurate forecasts and assists in the development of better strategies in production, distribution and marketing. An accurate forecast provides the input to match supply with demand and produce profitable aggregate planning. II. Order Fulfillment RFID enables automation of processes such as picking, shelving, and cross-docking. These operations are consolidated and the costly logistics mistake of not dispatching the right item to the right customer at the right time is reduced with the use of RFID. RFID technology provides enhanced visibility along supply chains enabling suppliers to accurately determine the location of a pallet and to track its journey through the supply chain. III. Manufacturing Flow Management RFID streamlines assembly line operations by enhancing process automation resulting in a reduction in cycle times and an increase in production throughput. Tracking capabilities, enabled by RFID, improve the velocity and visibility of products along the supply chain. Furthermore, RFID technology can be useful to manufacturers with just in-time (JIT) assembly lines. IV. Reverse Logistics and Return/Recalls Management RFID can facilitate the return of defective products and product recall, also known as reverse logistics. RFID technology facilitates return management by matching a product to a particular sale. Enhanced traceability and tracking capabilities, enabled by RFID, allows manufacturers to eliminate fraudulent products being returned to retailers. Moreover, RFID makes lot-level traceability available throughout the supply chain limiting the logistics

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