Knowledge Zone - Operations



Role of RFID in Supply Chain Management

by Siddharth Patnaik & R. Janaki *

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Part - X

  • Returns & Recall Management

    Companies could supplement the basic shipment identification information by writing the specific customer and time of shipment to the tag immediately prior to distribution. Producing and recording this information would provide several benefits. In the event of a recall, companies could trace specific shipments to specific customers, which would enable a highly targeted notification and return operation and avoid a costly general recall. For general returns, companies could verify that the customer returning merchandise is actually the customer who received it, which would deter diversion, counterfeiting and other forms of return fraud.

  • Service and Warranty Authorizations

    Authenticating the product and customer with proprietary information could also be used to authorize warranty and service work. Upon completion of repairs or service, a record of the activity performed could be encoded on the tag to provide a complete maintenance history that travels with the item. If future repairs or service are required, a technician could access the item's complete maintenance and configuration information without accessing a database simply by reading the tag. This application ensures workers have necessary information if no database access is available, and eliminates the need and expense of making phone calls or wireless data inquiries to access records.

  • Transportation

    As with order management, RFID updates can drive substantial visibility and optimal adaptability to your transportation plan. Proactively detecting when an order is over, short, damaged, or incorrect enables you to take control of your transportation plan, which directly affects your financial and service level goals.

Concerns Surrounding RFID

  • Privacy concerns

    Arguably the biggest concern about the RFID technology is the worry that it will infringe on the privacy of buyers. The RFID tags would be able to scan buyer behavior at the point of purchase and even after that. Many people consider it a breach of privacy. This is leading to a major public outcry against the use of RFID technology.

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* Contributed by -
Siddharth Mohan Patnaik, B.Tech. (Electronics),
Ravulpathi Janaki, B.Tech. (Mechanical),
II Year, IIM Lucknow.