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Enhanced technique. Empowered technology. |
| RFID - Supply chain / Challenges in RFID |
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Supply chain
Organizations everywhere have a variety of reasons for implementing this technology within their supply chains—ranging from meeting the mandates of major retailers and the Department of Defense all the way to reorganizing logistics operations to realize operational performance gains. And while RFID will likely have a substantial impact on supply chain in the years to come, adopting an incremental approach today will prove most effective as RFID technology requirements continue to evolve.
Wal-Mart has tapped RFID as the technology that will help them limit out-of-stocks, allow supply chain visibility in real or "near-real" time, and reduce costs and labor. The benefit for Wal-Mart is clear: higher costs and poor inventory control in the supply chain do not help anyone, especially the largest retailer. With Wal-Mart selling over $245 billion worth of goods in fiscal year 2003, a 1% improvement in the out-of-stock issue could generate nearly $2.5 billion in very profitable sales.
However, what is the incentive for their suppliers? One of the primary benefits conveyed to Wal-Mart's supply chain partners is the additional sales revenue that suppliers can generate due to improved out-of-stock levels. Next, lower operating costs can be realized through labor reduction and improved business processes.
Challenges in RFID
RFID technology has many benefits over the traditional tracking system mainly because of its ability to track items without the line of sight. The interrogator sends RF signal to the tagged items and receive the information it was looking for as long as they can receive the RF signals from the interrogator. But making the RF signal reach the tagged items and interrogator is not that simple and there are many environmental factors that impact this RF communication. Some of these factors are:
- Metals
- Liquids
- Other RF interferences
- Speed of the items
- Polarized Materials
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