Knowledge Zone - Operations



Role of RFID in Supply Chain Management

by Siddharth Patnaik & R. Janaki *

Previous

Part - VIII

Applications of RFID

  • Asset management

    RFID tags can be permanently attached to capital equipment and fixed assets. Fixed position readers placed at strategic points within the facility can automatically track the movement and location of tagged assets with 100 percent accuracy. This information can be used to quickly locate expensive tools or equipment when workers need them, eliminating labor-wasting manual searches. Readers can be set to alert supervisors or sound alarms if there is an attempt to remove tagged items from an authorized area.

    By tracking pallets, totes and other containers with RFID, and building a record of what is stored in the container as items are loaded, users can have full visibility into inventory levels and locations. With visibility and control, manufacturers can easily locate items necessary to fill orders and fulfill rush orders without incurring undue managerial or labor time.

  • Production Tracking

    Manufacturers can reduce their working capital needs by taking advantage of RFID to provide greater visibility into work-in-process tracking and materials inventory. By applying RFID tags to subassemblies in the production process, rather than to finished goods, manufacturers can gain accurate, real-time visibility into work-in-process in environments where bar codes are unusable. Industrial control and material handling systems can integrate with RFID readers to identify materials moving down a production line and automatically route the items to the appropriate assembly or testing station.

  • Inventory Control

    The main benefits to using RFID in the supply chain come from improved inventory tracking. Manufacturers, distributors, logistics providers and retailers can all use RFID for inventory applications, and in carefully planned systems, may share the same tags to reduce implementation costs. By using the highly accurate, real-time and unattended monitoring capability of RFID to track raw materials, work-in-process and finished goods inventory manufacturers can improve visibility and confidence into their inventory to enable overall inventory levels, labor costs and safety stocks to be reduced. To secure inventory from theft and diversion, readers could be set to sound alarms or send notification if items are placed in unauthorized areas of the facility or removed from storage without prior approval.

Next


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