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Application of RFID Systems in SCM

RFID (Radio Frequency Identification) technology is a wireless communication method used for data capture linked to various identification attributes of entities with RFID tags. Its integration into supply chain management enhances efficiency, accuracy, and transparency, although challenges such as cost, security, and interference persist. The future of RFID in supply chains looks promising, with potential for further advancements and improvements.

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0% found this document useful (0 votes)
24 views31 pages

Application of RFID Systems in SCM

RFID (Radio Frequency Identification) technology is a wireless communication method used for data capture linked to various identification attributes of entities with RFID tags. Its integration into supply chain management enhances efficiency, accuracy, and transparency, although challenges such as cost, security, and interference persist. The future of RFID in supply chains looks promising, with potential for further advancements and improvements.

Uploaded by

etbaabdellatif
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction :Context of

RFID Technology
What is RFID
Technology ?
RFID (Radio Frequency IDentification) is
a
wireless communication technology used
to
capture data, which may
be linked to different identification attributes
(serial number, position, colour, date of
purchase, etc.)of entities carrying
RFID labels (tags).

An Overview on RFID Technology Instruction and Application - Fatah Chetouane; Faculty of Engineering, Université
de Moncton, Moncton, E1A 3E9, New Brunswick
Its
components & How it works
RFID Tags
What is rfid tag?How does rfid tag work?What is the disadvantage? - Mina Zhang; Rfid Card Sales and Marketing
Manager- Shenzhen Meihe Induction Technology Co., Ltd (January 9th, 2019)

Overview Frequency of RFID


The frequency on which the RFID system operates designates the intensity of the radio waves used to
transmit information and is a key factor in determining performance levels and applications for the
system. Nearly all RFID systems operate on one of four frequency bands: low frequency (LF), high
frequency (HF), ultra high frequency (UHF), and microwave (MF).

Strategic value of RFID in supply chain management -May Tajima ; journal of Purchasing & Supply Management 13 (2007)
261–273 ; https://skyrfid.com/images/uhf_regulations.pdf

History of RFID technology


1948 1980s Standardization Deemocratization
2005

Manufacturing and marketing


Military 1990s

RFID and supply chain


management
The relationship between RFID and supply chain
management

RFID technology and supply chain


management
are deeply intertwined, offering a symbiotic
relationship that enhances efficiency,
accuracy,
and transparency throughout the entire
supply
chain process.
https://www.tesswave.com/rfid-in-supply-chain-and-logistics/

RFID functions within inventory management.

Rfid
Technologies: Supply-Chain Applications and Implementation Issues by Rebecca Angeles [University of Arizona]
RFID in Inventory Management: Tracking and Tracing
in the Supply Chain

he Pros and Cons of RFID in Supply Chain Management Katina Michael, Luke McCathie University of Wollongong

challenges leading to RFID


adoption
Transition from Bar-code Technology to RFID
Overview of Bar-code Technology Limitations:

● Direct scanning requirement


● Difficulty in real-time tracking
● Limited effectiveness in tough environments

RFID in the Supply Chain: A Guide to Selection and Implementation by Judith M. Myerson
Example: Amazon's Experience: ● Transition from barcodes to
RFID in warehouses
● Improved tracking speed and
accuracy with RFID

Managing Store Inventory


using RFID
https://aws.amazon.com/fr/blogs/industries/enhancing-retail-store-inventory-management-through-rfid-technology-aws/

Cost/Benefit Analysis
Challenges Without RFID:
● Suboptimal operations due to manual processes
● Data security vulnerabilities
● Logistical complexities causing inefficiencies
● Difficulty in achieving desired ROI

RFID in the Supply Chain: A Guide to Selection and Implementation by Judith M. Myerson
Example: Walmart's Decision-Making Process:

● Evaluation of RFID implementation


costs versus benefits
● Conclusion on the
cost-effectiveness of RFID for
long-term benefits

Rfid-technology-and-application-for-walmart

Supply
Chain
Synchronization

Challenges Without RFID:


● Data silos hindering information flow
● Lack of real-time visibility across the supply chain
● Difficulties in tracking products across the network due to
manual processes

RFID in the Supply Chain: A Guide to Selection and Implementation


by Judith M. Myerson
Example: Coca-Cola's
Experience:

● Utilizing RFID to share


information in real-time
● Improving collaboration across
the supply chain

solving-coke-cooler-stock-outs-with-rfid-nfc-tagging

Tracking Problems

Challenges Without RFID:

● Manual tracking processes leading to errors and delays


● Data inaccuracies due to manual data entry
● Limited visibility into product movements across the supply chain

RFID in the Supply Chain: A Guide to Selection and Implementation by


Judith M. Myerson
Example: FedEx's Experience:

● Improvement in package
tracking with RFID
● Real-time visibility leading
to fewer errors and delays

https://spotsee.io/uncategorized/rfid-shipping-solutions-take-hold-at-top-businesses/

Impact of RFID systems on


SCM
Better decisions
RFID data can be used
to
generate reports that
provide
insights into trends, which
can
help managers make
better
decisions
journal of Supply Chain and Operations Management, Volume 10, Number 1, February 2012
Improved productivity

RFID technology can help


reduce
human errors and save time
by
automatically generating packing
lists and shipping labels
journal of Supply Chain and Operations Management, Volume 10, Number 1, February 2012
Improved competitive position ( major impact )

RFID technology can help companies improve their


competitive position by providing a more efficient and
accurate supply chain

RFID facilitates functions of SCM


interactions between
competitive SCM

journal of Supply Chain and Operations Management, Volume 10, Number 1, February
2012

future trends of RFID technology


Future trend of RFID Technology in Supply chain management :

1. The impact of Covid-19 on Supply chain management:

● Supply Chains of 2020 look a lot different than they in the past, and they are

going to look a lot different in the future as well;

● Companies are supposed to handle efficiently with the agility of the new norms

of their SCs ;

● Rethinking supplier’s strategies.


ELSEVIER “Review of RFID and IoT integration in supply chain management”
2. Other technologies to be merged in RFID Technology:

By ODETTE:
Implementing RFID in the Automotive Supply Chain
CRITICS OF RFID IN SUPPLY
CHAIN MANAGEMENT
Scanning Issues:

Even with more RFID readers


available, physical objects like metal
can still disrupt the system
www.wireless-technology-advisor.com

Privacy Concerns:

If security measures aren't done right, it can


put the RFID
system at risk and raise privacy concerns.
Unauthorized
access to personal information on RFID
tags can happen.

www.wireless-technology-advisor.com
Lack of Security:
One big problem with RFID tags is that they don't
have strong security.
Anyone with the right reader can access the
information on the tag,
which can lead to security breaches.

www.wireless-technology-advisor.com
Expense:

When it comes to cost, RFID systems can be


pricier than
barcode systems. The expense of RFID tags
and readers
can be a notable drawback, particularly for
large-scale
implementation.

www.wireless-technology-advisor.com
Interference and Collision:

In a busy place, lots of RFID tags close together


can interfere with
each other, causing problems in identifying and
tracking
individual tags accurately.

www.wireless-technology-advisor.com

study case
To substantiate the theoretical framework, our case
study will entail a comparative analysis between two
companies. The first company integrates RFID
technology into its supply chain management practices,
while the second company operates without utilizing
RFID technology. This comparison seeks to delineate
the distinctions between a supply chain incorporating
RFID technology and one adhering to conventional
methodologies.
Logistics hub YAZAKI the German groupe
kotozukuri hub KOSTAL

SCM involves RFID in its


management traditional SCM

progress status

A questionnaire has been developed and sent to professionals :

https://docs.google.com/forms/d/e/1FAIpQLSfLcbmt6zYs6P5HOSu
AH_XGhH1xdCCsEOi6yU30iSrIhF4TiQ/viewform?usp=sf_link

An interview with two professionals from Yazaki :

● with Ms. zakia khailou, ex RFID responsible at YAZAKI


· Main interview questions:
1. Can you explain how RFID technology is utilized for inventory
management within the supply chain?
2. What are the inventory management challenges that organizations
commonly face in the supply chain?
3. How does RFID technology address these challenges? 4. What are
the main benefits of using RFID technology for inventory management
in the supply chain?
5. What are some limitations or criticisms associated with current RFID
applications in inventory management?

Conclusion

In conclusion, the contextualization of RFID technology within supply


chain management (SCM) has highlighted its significant impact and
potential. Despite initial challenges in adoption, RFID's integration into
SCM has proven transformative, offering enhanced visibility,
efficiency, and data accuracy. However, there remains untapped
potential and areas for further exploration, suggesting a promising
future for RFID within SCM

Thank you for your attention !

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