Question

What is RFID, and what role does it play in SCM?

Answer 1

RFID technology or Radio Frequency Identification technology refers to the technology that uses wireless use of electromagnetic field. These electromagnetic field helps in transferring data.

The advantages of using RFID tags over traditional bar code technology are: -

• By utilizing RFID technology and incorporating tags, products can be counted easily in just few seconds because multiple RFFID tags can be scanned simultaneously. As most of the manual work is replaced it saves cost of manual labor.
• RFID helps in tracking the cartons by obtaining the real time basis information.
• As all the cargo units include RFID tags which can help in storing the information in the computer.
• Read-write equipment helps in tracking the cargo going in and out.
• It can easily identify the record of losses by tracking information on a real time basis.
• RFID helps in easy tracking of the shipping container with the help of RFID tags in a real time basis.

The supply chain system could be greatly improved by leveraging RFID technology. Supply chain system is a complex process and RFID technology provides lot of benefits when implemented in supply chain system. Supply chain system includes the flow of goods from manufacture to customer. Supply chain management covers marketing decision, demands, strategy etc. Hence to benefit in the long run supply chain implement RFID technology. RFID technology brings automation to the supply chain and also helps in streamlining the process.