Question

(45) Drones are among technologies that some companies are beginning to explore for possible use in the supply chain. Explain clearly its potential impacts on supply chains. What are some major obstacles for full scale use of drones?

(46) Do you think that Radio Frequency Identification (RFID) systems are superior to Bar Codes? Clearly explain your answer. For which of the 5 components of the SCOR framework are RFID’s most useful? Please explain your answer.

Answer 1

45 -

Potential impacts of Drones on Supply Chains -

1. Drones are the effective and efficient use of technology which will enable Just In Time Delivery of Orders. Hence, the inventory and holding costs can be decreased with the investments in drone technoogy and it will hugely impact the future supply chains.

2. Drones can be impactful in bringing disruption in the supply chain networks of the companies. It will hugely benefit to those who implement it and will create a new level of competition in the market.

3. Monitoring of the routes which are being commercially used for the supply chain will be easier using drones. It will be a positive impact on truck deliveries which can not be monitored easily and optimally at present.

4. It will speed up the deliveries from retailers to the customers on the door step. Now, using drones, same day delivery can be promised to consumers.

Major Obstacles for using drones -

1. The privacy and security reasons of many of the major government institutions will be put at risk as drones are equipped with cameras and can move through air over the buildings and homes.

2. Privacy of human beings will be at stake while using drones.

3. Prices of drones is high and as the control range increases, prices also increases, Hence, huge and heavy investments are required.

4. Risk of Interference with military, and commercial aircrafts is analyze as a serious obstacle in using drone.

5. Battery life of the drones is an obstacle. Failure in the middle of the delivery will result in a loss.

6. So far, drones have been used to deliver in rural areas, however, in countries such as USA, 80 perent of the population lives in urban areas. Hence, model needs to be optimized.

7. Weather issues cannot be ignored.

46)

While RFID and barcodes, both can be used to collect data and track where the stuff is located, they have many other differences which are defined below:

1. Barcodes can be scanned only one at a time while many RFID tags can be scanned in one time.

2. Barcodes require the line of sight with the scanner while RFID does not need any line of sight with the scanner.

3. Barcodes are generally printed on a paper and are prone to wear and tear while RFID are tough.

4. The type and amount of data stored in a RFID tag is much more than a barcode.

Hence, it can be concluded that RFID is faster, accurate and durable than barcodes and are better in the case where costs are not a problem. Example - RFID on a product of Rs 10000 is optimal which is prone to wear of barcodes, while barcodes are good to use with a Rs 10 product as using an RFID will be costlier.

The 5 components of SCOR model are :

1. Plan

2. Source

3. Make

4. Deliver

5. Return

Source - RFIDs can be useful in sourcing the raw materials and components, storing them in the warehouse, locating them on purpose and reviewing the inventory during the process. RFID will be useful in quick performance of the above activities.

Make - RFIDs will allow the internal logistics easy, reliable and quick using the RFIDs. And hence, the Make part of the supply chain will be improved.

Deliver - Delivering is a process which needs every item delivered to be stored in the database and complete record is maintained and sent to the customer. RFIDs can be used to store the data and transferring the data to the customer to enable quick response.

Return - Returning of products to the source will be optimized using the RFIDs. The database will be easily maintained with the serial number of returned products.

The example of the perfect implementation of RFIDs is Walmart Warehouses.