RFID in Logistic and Supply Chain †Free Samples to Students

Question: Discuss about the RFID in Logistic and Supply Chain. Answer: Introduction: In the FMGC sector (fast moving consumer goods), it is required to count the products numerous times while in the manufacturing process. However previously it was managed manually altogether. Now with the integration of the RFID tag, now it is possible to count the products within second and that too very accurately (Reyes, Li and Visich 2016). In contrast to the traditional barcode, RFID tag can store far more information about the products. The data is provided in the real time which helps in accurate planning and faster decision implementations (Buyurgan, Landry and Philippe 2014). Previously in order to scan the product and record that information product has to be in line-of site as barcode does not work without being in line-of-site. However with RFID it is possible to scan the products automatically irrespective of the location of the product (Fan et al. 2014). The manufacturers are not being able to draw significant revenue as they are finding it difficult to witness any short-term gain by integrating the RFID technology in the packaging and the distribution systems (Papadopoulos et al. 2016). Most of the RFID tag follows EPC (electronic product code) standard which only contain the serial number of the product. Data base links this serial number to other associated information which has to be processed further to get the required information about the product itself. However, the task of Data synchronization, integration, transformation, and communication is huge barriers in making the technology effective for the organization (Ahson and Ilyas 2017). Lack of standards: The RFID being relatively new technology, there are lack of proper standards available which hinders the widespread adoption of the technology for organizations (Tsao, Linh and Lu 2017). RFID tags collect information about the product and send this information remotely which is interpreted by the RFID reader. It is of a major concern that as the consumers purchase the products that have the RFID tags, there is a possibility that the items will be continuously tracked, even after purchased by the consumers (Turri, Smith and Kopp 2017). Hence there is a possibility of violation of the consumers privacy. With the introduction of the RFID technology, there have been significant changes in the way the packaging and the product distribution used to be managed by the manufacturers (Brody, Sabbagha and Sand 2014). RFID technology helps in smart packaging. In the FMGC sector, packaging plays an important role as the product has to be very fresh and needs to be delivered to the retailer stores in quick time. However it is not easy to keep track of the items whether they have been packed or not. The task of managing the packaging process becomes very difficult as the packaging has to be very first and at the same time the accuracy has to be maintained as well. With RFID, the items can be tracked and it is also possible to know the status of the packaging. The process can be completed remotely without knowing the actual physical location of the item. This brings more accuracy and effectiveness in the packaging. Organizations around the world use shipping containers for transporting large amount of cargo. Now it has always been difficult to keep track of the containers along the supply chain. However with the RFID tagging, the containers are easily identified throughout the supply chain, thus bringing more efficiency and productivity in the shipping process (Brody, Sabbagha and Sand 2014). However the process of integrating RFID technology in the logistic and supply chain management to manage the packaging and shipping is considered to be a complex and knowledge intensive process. In order to successfully use the technology, skilled and trained people are required which means that the company has to extend the work force and if required need to replace as well. It may act as a threat for the internal employees. The data that are sent by the RFID tag needs to be carefully analysed and for that advanced and efficient data analytics techniques are required. In order to implement the data analytics system the company might have to change the existing computing architecture as traditional computing architecture does not support the infrastructure used for advanced computing like cloud computing and big data analytics which must be incorporated into the organizational architecture to adopt the RFID technology (Turri, Smith and Kopp 2017). Changes due to RFID in distribution: According to the article mentioned above, RFID technology is also beneficial for managing the distribution process. When the product arrives at the distribution centre the product register itself at the entry with the RFID read-write equipmentinstalled at the entry gate. The information is then sent to the data center of the manufacturers indicating the product has been distributed at the distribution center. The process not only makes the delivery fast, but also improves efficiency and accuracy in the distribution process itself. The overall distribution cost is also reduced. The implementation of RFID ill significantly influence the financial structure of the organization. The Organization needs to invest heavily in the labours as more and more people were needed to manage the task of tracking product in the in the shipment and the distribution phase. With the RFID implementation U.S. economy is expected to save around US$500 billion annually, exclusively through RFIDs advanced supply management capabilities (Shin and Eksioglu 2015). Still the organization has to invest heavily in training people and upgrading the computing infrastructure which makes the technology more costly. . According to a survey conducted by Accenture, a multinational IT company, the price factor is one of the two major reasons that the organization has not opted for the technology in full phase (Accenture.com 2018). Some reports has favored the benefits that RFID brings in the shipment and the distribution process, while some reports are more concerned about the price tag. The rep orts which have criticized the RFID technology in the basis of cost, has pointed out that technology irrespective of the benefits does not make sense if the manufacturers cannot afford it. However organizations which are adopting the technology are only opting for the tagging pallets and cases, not the item level tracking which is necessary to realize the full benefits of the technology. The range of current passive tag various from US$0.15 to US$0.75, excluding the purchase of the volume tags which impacts the cost significantly. References: Accenture.com. (2018).RFID: A nexus of #CustomerExperience, Profitability and #Technology. | Read the latest idea at the intersection of business technology #BizTech #cx. [online] Available at: https://www.accenture.com/us-en/blogs/blogs-rfid-customer-experience-profitability-technology [Accessed 14 Apr. 2018]. Ahson, S.A. and Ilyas, M., 2017.RFID handbook: applications, technology, security, and privacy. CRC press. Bhuptani, M. and Moradpour, S., 2005.RFID field guide: deploying radio frequency identification systems. Prentice Hall PTR. Brody, A.L., Sabbagha, F. and Sand, C.K., 2014. Radio Frequency Identificationin Packaging: Part 2. Buyurgan, N., Landry, S. and Philippe, R., 2014. The value of RFID benefits vs. costs.RFID adoption in healthcare and ROI analysis, pp.89-90. Fan, T.J., Chang, X.Y., Gu, C.H., Yi, J.J. and Deng, S., 2014. Benefits of RFID technology for reducing inventory shrinkage.International Journal of Production Economics,147, pp.659-665. Papadopoulos, T., Gunasekaran, A., Dubey, R. and Balta, M., 2016. Big Data and RFID in Supply Chain and Logistics Management: A Review of the Literature.Supply Chain Management in the Big Data Era, p.108. Piramuthu, S. and Zhou, W., 2016.RFID and sensor network automation in the food industry: ensuring quality and safety through supply chain visibility. John Wiley Sons. Reyes, P.M., Li, S. and Visich, J.K., 2016. Determinants of RFID adoption stage and perceived benefits.European Journal of Operational Research,254(3), pp.801-812. Shin, S. and Eksioglu, B., 2015. An empirical study of RFID productivity in the US retail supply chain.International Journal of Production Economics,163, pp.89-96. Tsao, Y.C., Linh, V.T. and Lu, J.C., 2017. Closed-loop supply chain network designs considering RFID adoption.Computers Industrial Engineering,113, pp.716-726. Turri, A.M., Smith, R.J. and Kopp, S.W., 2017. Privacy and RFID technology: a review of regulatory efforts.Journal of Consumer Affairs,51(2), pp.329-354.