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RFID Assisted Supply Chain Management System

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  • 1. RFID assist Supply Chain Management System
    Name: Wu Sir, Low
    Course: Business Logistics
  • 2. Outline
    Radio Frequency identification (RFID) and Supply Chain Management (SCM)
    Benefits of RFID
    better inventory control
    minimise product shrinkage
    reduce cost
    Challenges of RFID
    Conclusion
  • 3. RFID and SCM
    Transmit data and remotely storing
    Microchip stores data, antenna transmit information
    Reader interact with middleware
    Middleware throughout manufacturer, retailer
  • 4. Benefits of RFID application for SCM: Better Inventory Control
    Process automation in shelving, cross-docking, and picking
    Update inventory quantities
    Track inventory visibility
    Reduce out of stock
    Reduce holding of obsolete inventory
    Lower safety stocks
  • 5. Benefits of RFID application for SCM: Better Inventory Control
  • 6. Benefits of RFID application for SCM: Product Shrinkage
    Constantly issue, especially for the high volume products
    Able to control the movement of goods
    Improve security
    Prevent theft
  • 7. Benefits of RFID application for SCM: Cost Reduction
    Potential return on investment (ROI)
    RFID automated data capture
    Cut down labour operating cost
    Reduce claims and deductions cost from customers
    Out-of-stocks cost
    Logistics cost
  • 8. Benefits of RFID application for SCM: Cost Reduction
    For example
    Wal-Mart
    Invested $3 billion in the system.
    Save approximately $8.35 billion annually
  • 9. Challenges
    Change business processes
    Cost
    Tag readability and reliability
  • 10. Conclusion
    • RFID technology assists SCM in a wide range of organisations
    • 11. Accomplish greater visibility and efficiency
    Collaborative environment
    Challenges constrain
    RFID is more than a technology, potential return on investment
    RFID enhancement in the future assists demand and supply
  • 12. Thank you!
    Any Questions?