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Role of RFID in Supply Chain Management by Siddharth Patnaik & R. Janaki * Part - VII Advantages of using RFID RFID technology, combined with the recent AutoID initiatives led by the Massachusetts Institute of Technology, is gaining momentum. These advances offer a standardized and scalable approach that can be deployed across the extended enterprise to suppliers, manufacturers, distributors and logistics partners to provide very reliable and cost-effective visibility at the item, case or pallet level.
Supply-chain visibility is a key contributor to increasing supply-chain performance, from both a financial and a service-level perspective. Greater visibility, as well as more accurate and timely information about supply-chain execution, allows for reduced safety stocks (thus optimizing cash-to-cash cycles and reducing inventory carrying cost) and increased on-time performance to customer commitments (thus driving additional revenue opportunities). Operating cost improves, as RFID (Radio Frequency Identification) significantly reduces the cost of cycle counting, receiving, picking and shipping. The technology also plays a critical role in addressing shrinkage and grey-market control concerns. * Contributed by - |
