Supply Chain Management – Improve 4 Key Measurements Using RFID

In supply chain management, overall success is tied to specific measurements. Successfully managed supply chains are able to achieve 99% traceability, 99% visibility, 99% efficiency, and 99% accountability. Achieving such goals can be nearly impossible using manual processes.

When RFID technology is properly implemented, it allows the supply chain to watch those percentages rise, saving money and increasing profits. These four concepts are not only relevant in supply chain management and logistics – they pertain to most businesses. Because of the transparent nature of the supply chain, it is an ideal example of where manual processes fall short and where RFID can improve results.

In order to understand how RFID can affect these four measurements, the first step is to learn how the supply chain industry defines them, and then managers can understand how to achieve them.

TraceabilityTraceability

What is it? The ability to verify the history, location, or application of an item by means of documented, recorded identification. [1]

How do I accomplish it? Supply chain managers can increase traceability using RFID. Tagging valuable items and setting up RFID read zones at different locations can give managers the ability to track the various steps that an item takes throughout a facility. If an item is subjected to intense processes like melting, the item can still be accurately tracked using RFID. Tagging a tote that moves with the item throughout the facility will allow the item to be tracked without potentially harming the RFID tag. Below is an example of how RFID can increase traceability in the supply chain.

1. Track & Trace – Increased traceability can provide valuable results for a supply chain manager. For example, if an item is determined to have a defect and the consumer or retailer informs the company, the manager can see the path that the item took throughout the facility. The documented path will not only help pinpoint the location of the problem, but it may also determine if any other items could have been compromised at the same location. If there are additional items that could have been compromised, the items’ RFID tags can be traced and located, and the items can be removed from shelves.

What does increased traceability do for me? If supply chain managers have increased traceability, they are able to track each item throughout the supply chain. This reduces the risk of lost or stolen items and expensive, over-estimated recalls which saves the company money.

More info visit http://www.asiarfid.com/rfid-basics/supply-chain-management-improve-4-key-measurements-using-rfid.html