The impact of RFID on supply chains
Passive tags are much more used in various RFID applications and duration of passive tags is longer than the active tags, but active tags can transmit signals over a longer distance than passive tags. The most common choice of tag for supply chain usage is passive tags that take effect in the UHF frequency range Tajima, RFID reader reads the information stored in the memory of tags and transfers them to a computer or enterprise application. This information can quickly be read by a wireless communication among compatible reader and tags in the readers range.
RFID system has to computerise a large amount of data and improve efficiency of operations.
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These functions are performed by middleware. The RFID middleware system between readers and applications is composed of two interfaces, namely the application interface and the reader interface, to communicate with the environment. One of the major problems in the application of RFID systems is existence of different standards. Presently only a few frequencies are consistent around the world.
Low-frequency passive tags have an effective range of approximately 30 cm, while high-frequency passive tags are useful in the range about 1 m. RFID technology is not new technology. Commercial use of RFID starts during 's the electronic article surveillance EAS system, animal tagging, toll road payment systems, using RFID in automotive industries for assembly lines , but the application in supply chain management is relatively new Tajima, RFID usage has increased in recent years in a wide range of various application and we can expect significant growth of RFID market in the next years.
The Electronic Product Code EPC is a common way for automatic and unique identification of objects parts, products, pallets, locations, etc. The EPC is prevalent method for assigning unique product identification in the modern supply chain environment. Use of RFID technology as well as bar codes, facilitates automation of processes and improves operations management through reduction of workload and elimination of human errors. There are some limitations about RFID application, e. Application of RFID technology is possible in wide area of human activity.
An increasing variety of enterprises are using RFID to improve their efficiency of operations and to gain a competitive advantage. The innovation in RFID is not in the technology itself, but in its use in real-business processes. The rapid development of information technology and reducing cost of RFID system components enable continuous expansion of application areas. Applications of radio frequency identification RFID technology within supply chain management have received particular attention in the past few years by many authors.
Kim et al..
Fashion Supply Chain Management Using Radio Frequency Identification (RFID - Google книги
Ko, ; T. Application of RFID technology is increasing in various industries as prices continuously decrease. Authors explained that fact with high costs of RFID employment per unit with compare to low costs of labour that retailers employ for product labelling. As seen in Fig. Providing that supply chain operations performed according to plan is a significant continuous activity. For internal end external supply chain it is very important that the real-time information flow is oriented backwards through the integrated supply chain, as parts, components, products, etc.
Thereby, it is possible to reduce order delays, lead times and inventory and therefore, increase customer satisfaction. Our conceptual framework for integration of ERP system and RFID technology with aim of providing information visibility in internal as well as external supply chain is based on just-in-time principles produce and deliver products or services as needed by customer or required by hierarchically superior level in the required quantities, just in time when needed and at right place avoiding storage whenever possible or using minimal inventories.
In order to provide a just in time environment, status information of manufactured parts should be available to all who needs that information within enterprise and also between supply chain partners in real time. Hierarchical planning model generates plans and schedules that are consistent with dynamic business processes. The hierarchically superior levels and subordinate levels of planning are interdependent according just-in time principle. RFID tags could be attached on objects as parts, subassemblies, components, products, containers allowing us effective tracking of objects in the production process.
Fast data acquisition and transfers of data to databases are facilitated by RFID technology. Products with tags have a unique identification number and could store relevant manufacturing information e. Collected RFID data have to transform into an appropriate report in order to share information within the enterprise and between partners in the supply chain.
The aim of our conceptual framework Fig. It refers only to a part of the entire supply chain. ERPINS has been designed for metal processing industry, wood and food processing industry and construction industry. For the purposes of developing the conceptual framework we have chosen the local ERP system due to the following reasons:.
This real-time feature of ERPINS is very important for control of deviation in production, as the performance of entire supply chain may be adversely affected by deviation from the production schedule.
- [PDF] Fashion Supply Chain Management Using Radio Frequency Identification (RFID) Technologies.
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Integration of RFID and ERP systems enables visibility of information about real-time production status directly from production shop floor e. This enables dynamic and real-time control of production and adjustment of the production schedule to disturbance in production process. RFID tags are placed on parts to prevent loss of parts and to monitor production status.
Using RFID tags, parts and products can be traced through the processes of production and assembly. Coordination of internal supply chain has been achieved when the parts from the production are transferred to the next stage product assembly immediately after the part is completed and it depends on the date required by the hierarchically superior plan e.
Tagging parts, products or containers is useful for each partner in the supply chain due to providing the visibility of material and information flows. RFID enables real-time access to information and minimizes the time and work needed for collecting information. Real-time automatic identification and data capture system, as RFID system, is highly important for agile production.
Automatic identification and capture data technology like RFID can be useful in order to improve business efficiency. In terms of management, integration of ERP and RFID allows effective decision-making considering customer requirements and efficient use of enterprise resources. This chapter is the result of literature review and experience of authors about application of RFID in enterprises and provides an overview of the current state of development of RFID technology and its application in practice.
The chapter is useful to researchers, practitioners and other interested parties to apply RFID in manufacturing and supply chain to understand the importance of real-time visibility in supply chain management in order to improve operational performance. RFID based identification and data capture is appropriate for overcoming the problems in production and other business processes, which are caused by manual identification and collecting data. Integration of ERP system and RFID technology can provide real-time tracking work orders, parts and products, data accuracy and information sharing through internal and external supply chain.
Limitation of research is that validation of the proposed conceptual framework is required through practical implementation in real manufacturing environment. Future research should include the development of mathematical model based on the conceptual framework described in this chapter. This auto-ID technology aims to reduce the likelihood of empty shelves by obtaining real-time product information.
Items with RFID tags have different identification numbers.
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It takes the RFID reader, which can read products within a foot radius, about a second to retrieve information from the tags. Then, that information is sent to a database, which provides real-time inventory reports to help stores manage inventory and replenish shelves. RFID tags are more expensive than barcodes, which are the most commonly used forms of auto-ID, and have a greater impact on a company's bottom line.
Like retail, the cost of implementing RFID technology in a warehouse setting could be an issue. If RFID technology was used in a warehouse, shipments could be received automatically, bar codes would no longer need to be scanned before storing the products, and picking and shipping the products would be easier. The advantages of implementing RFID in a warehouse setting are very similar to those in a manufacturing environment, except that, in manufacturing, there is the potential to improve product life cycle management, quality control, and inventory management.
Many privacy concerns have arisen from the debate surrounding the use of RFID tags. Consumers are concerned these tags could be used to track their purchases or their current location. A recent article in the The Wall Street Journal by Miguel Bustillo says that Wal-Mart is working with its suppliers to ensure that the RFID tags are placed on removable labels, not embedded in the clothing itself, in order to reduce consumers' fears of tracking.
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