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The accuracy and timeliness of information is a key factor in logistics and supply chain management, for which RFID technology can provide sufficient guarantee.
From the perspective of the entire integrated supply chain, the RFID system greatly improves the transparency of the supply chain, and items can be tracked in real time anywhere in the supply chain. The readers installed on the shelves of factories, distribution centers, warehouses and shopping malls can automatically record the flow of items throughout the supply chain-from the production line to the final consumer.
From the perspective of the depth and breadth of supply chain integration, integration can be divided into four levels: information integration, synchronized planning, collaborative workflow, and comprehensive supply chain integration. RFID makes revolutionary changes at every level, truly realizing real-time supply chain integration.Information integration is more accurate
In the entire supply chain integration, information integration is undoubtedly the foundation. When logistics flows in the supply chain, RFID enables all partners in the supply chain to obtain shared information in a timely and accurate manner.
The initiation of the supply chain should be driven by the end user demand. In a supply chain environment without good information integration, the needs of end users are often distorted in the delivery process of the supply chain. And RFID can allow suppliers, manufacturers and retailers to clearly and accurately understand the inventory situation of the sales terminal. Supply chain companies can more accurately predict the needs of end users and make plans with the information transmitted through RFID.Synchronization plan is more effective
By providing real-time logistics information through RFID, the implementation of end-user needs in the entire supply chain has transparent traceability, avoiding a large number of WIP (Work-in-Process) generated by batch planning. RFID guarantees that supply chain planning is a more accurate and feasible planning method.Increase the degree of collaboration in the workflow
Synchronous planning solves the problem of what the supply chain should do, while collaborative workflow is to solve the problem of how to do it.
Collaborative workflow includes procurement, order execution, engineering changes, design optimization and other businesses. RFID simplifies a series of processes for purchasing, receiving, warehousing, sorting to outgoing, transportation, putting on shelves and finally reaching customers. The result is a flexible, efficient, reliable, and low-cost supply chain.Brand new business environment
RFID’s well-integrated supply chain environment provides participants in the supply chain with a brand-new business operation model, enabling enterprises to pursue their goals more effectively.
First, resources can be used more efficiently. RFID does not need to manually identify the tag, the reader reads product-related data directly from the radio frequency tag. Some readers can read data of 200 tags per second, which is 1000 times faster than traditional scanning methods, saving labor resources such as cargo acceptance, shipment, and accident handling.
Second, effectively promote the optimization of the supply chain structure. In a highly coordinated and integrated supply chain environment, information flow can be separated from actual logistics to achieve more flexible business processing, but how to closely link information flow and logistics becomes the key.
Through cross-organization implementation of RFID technology, upstream suppliers and manufacturers, together with downstream distributors and retailers, can use boxes, pallets, and packaging tags to track products in the supply chain, thereby reducing inventory levels to reduce the occupation of working capital, and more Store products accurately and efficiently and increase sales.
Third, truly achieve real-time supply chain management. Through the RFID integrated information system platform, inventory or goods in transit can be clearly and accurately displayed, and each supply chain member has insight into the sales and supply status of the entire supply chain. The response speed and accuracy of the entire supply chain are improved, thereby reducing reverse logistics. The market demand is coordinated by all participants in a highly real-time integrated supply chain environment.
Comprehensive supply chain integration is like a large-scale virtual enterprise organization. Each member of the organization shares information, synchronizes plans, and uses coordinated business processing procedures to cope with the complex and changeable market and provide end users with efficiency, speed and flexibility. Support and services to gain an advantage in the competition.
A survey report from Symbol Corporation in the United States: The use of RFID can reduce inventory by 5% to 30% for manufacturers, reduce transportation costs by 2% to 13%, and shorten product delivery cycles by 10% to 50%. . For retail companies, shelf utilization is increased by 5% to 8%, inventory is reduced by 5% to 10%, sales are increased by 2% to 10%, and logistics costs are reduced by 3% to 4%.
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