Presentation 08


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Presentation 08

  1. 1. Benefits of Radio Frequency Identification and How It Enhances Logistics Management
  2. 2. Introduction <ul><li>Businesses are always looking for something that will help them improve in various areas and keep up with the competition. Logistic management is very important to this goal. The decision then becomes whether to use the traditional logistic management or try using RFID technology. </li></ul>
  3. 3. What is RFID? <ul><li>Radio-frequency identification (RFID) is an automatic identification method that relies on storing and retrieving information by using RFID tags. </li></ul>
  4. 4. What is a RFID Tag? <ul><li>A RFID tag is a device than can be applied to a person, product, or many other things. </li></ul><ul><li>The purpose of this tag is to identify an object by using radio waves. </li></ul><ul><li>Almost all RFID tags consist of at least two parts. </li></ul>
  5. 5. RFID Tags continued <ul><li>The first part is an integrated circuit that stores and processes information, modulates and demodulates a (RF) signal, and other functions as well. </li></ul><ul><li>The second part consists of an antenna that receives and transmits the signal. </li></ul>
  6. 6. Categories of RFID <ul><li>Passive </li></ul><ul><li>Active </li></ul><ul><li>Semi-passive </li></ul>
  7. 7. Passive <ul><li>Do not have any internal power source. </li></ul><ul><li>The electric current facilitated in the antenna by the incoming radio frequency signal gives enough power for the integrated circuit in the tag to receive enough power to send an answer. </li></ul><ul><li>There are passive tags that can be put in a sticker or even under the skin. </li></ul>
  8. 8. Active <ul><li>Have their own internal power source </li></ul><ul><li>Are usually much more dependable than passive tags because they have the ability conduct a &quot;session&quot; with a user </li></ul><ul><li>Active tags also transmit at higher energy levels because of their internal power supply. </li></ul><ul><li>Active tags are usually larger and more costly to produce, and their shelf life is not as long. </li></ul>
  9. 9. Semi-Passive <ul><li>Have their own internal source of power, but the battery solely powers the microchip and no signal is broadcasted. </li></ul><ul><li>Circuitry of semi-passive tags has more sensitivity than passive tags because it is battery supported. </li></ul><ul><li>The main three advantages of semi-passive tags are longer battery life than those of active tags, greater sensitivity, and the ability to perform active functions under its own power . </li></ul>
  10. 10. Common Applications of RFID <ul><li>Parts Maintenance and Repair Operations, Yard Management, Reusable Transport Items tracking, High Value/High Security Asset tracking, Cold-Chain Management, and other applications where extended capabilities are needed. </li></ul>
  11. 11. Benefits of RFID <ul><li>Sluggishness is the best word to characterize traditional marketing/distribution methods. The system might never catch up with the demand of popular products because of the inefficient ordering process along the supply chain. </li></ul><ul><li>Traditional methods regard all items in the same way. Companies carry similar levels of inventory for both volatile and nonvolatile items and distribute them through one type of logistics network. </li></ul>
  12. 12. Benefits of RFID <ul><li>reduction of warehouse and distribution labor costs </li></ul><ul><li>reduction of point of sale labor costs </li></ul><ul><li>reduction of inventory </li></ul><ul><li>improved forecasting and planning </li></ul><ul><li>reduced theft </li></ul><ul><li>reduced out of stock conditions </li></ul><ul><li>improved customer experiences </li></ul>
  13. 13. Case Study <ul><li>Wal-Mart mandated that its suppliers use RFID technology </li></ul><ul><li>The University of Arkansas was commissioned to conduct a twenty nine week study to analyze out of stock merchandise at twelve pilot stores with RFID and twelve control stores without the technology </li></ul>
  14. 14. Case Results <ul><li>16% reduction in out of stock </li></ul><ul><li>The stores with RFID also reported that when they had items that were out of stock, they were replenished three times faster than those using the traditional bar codes. </li></ul><ul><li>Wal-Mart also reports a 10% reduction in manual orders, which results in a reduction of excess inventory </li></ul>