Question

In: Operations Management

What are the main benefits to shippers of RFID based systems, which incorporate e-seals on containers?

What are the main benefits to shippers of RFID based systems, which incorporate e-seals on containers?

Solutions

Expert Solution

Companies are more and more mistreatment item-level oftenness IDentification (RFID) to trace and track the products for internal control purpose and conjointly and provide chain management. Tagging each single product, not solely improves the visibility of products transport within the entire provide chain processes however conjointly serving to to get rid of common issues like inventory shortages within the provide chain.

The utilization of RFID technologies has been providing the ports and their customers with period of time location and standing data, machine-driven alerts, and analytics. In general, there square measure 2 classes of operational and non-operational advantages, by mistreatment RFID technology at port terminals. The operational advantages square measure associated with the reduced prices of inventory Management Labor and instrumentation, quicker and safer instrumentation checkouts, the gathering of infrastructural knowledge to use in huge knowledge analytics for system optimisation, and sweetening in accuracy of inventory.

The use of RFID technology in a very port surroundings may also result in many non-operational advantages, such as-

1- The decrease within the time of handling activities ends up in the reduction of each the labour prices and fuel consumption. As a subsequent, it ends up in associate enlarged productivity and conjointly to a stronger service level each to customers.

2- Reduction of the time spent by the trucks waiting within the queue at the doorway of the instrumentation ports can scale back the pollution caused by the trucks’ exhaust gas emissions with the relevant decrease of the health prices on the individuals within the space.

3- intangible advantages that square measure simply discovered, however tough to quantify. Some relevant intangible advantages square measure the automated identification of the containers, less human errors, instrumentation visibility and traceability, increased security, the reduction of the black-market trade, and therefore the reduction of the executive prices.


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