RFID in Supply Chain Management

RFID is a technology that is used to describe a system that transmits the identity of an object wirelessly. The main components in RFID systems are the tag, the reader, and the RFID middleware that translates and integrates data for enterprise applications. RFID benefits manufacturing suppliers with operational efficiencies and integrated supply chains. RFID also provides greater visibility of goods in both the internal and external supply chain network.

Integration Inter-company RFID integration means that an organization collaborates with its supply chain partners to implement RFID technology in its supply chain network. The RFID mandates from Wal-Mart, Target, Metro Group and other retailers fall into this category. The ideal collaboration relationship between upstream suppliers and downstream customers would imply that both organizations benefit directly from the same RFID system.

Business Unit RFID integration means that integration is extended to different business units within an organization such as headquarters, manufacturing, warehouses, or distribution centers. The implementation requires a scalable RFID architecture that is designed to meet a portfolio of expectations. Team skills and more complex business cases are used to achieve synergy in the supply chain. The benefits of implementing intra-organization RFID include reduced labor costs, reduced human errors in logistics operations, and more efficient inventory management between the manufacturing and distribution centers.

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