This document discusses applications of RFID technology in supply chain problems. It begins with an introduction to RFID technology, describing RFID tags, readers, and antennas. It then compares RFID to barcodes, noting RFID allows reading many tags at once from farther distances without line of sight. The document outlines how RFID can be applied in a supply chain for demand management, order fulfillment, manufacturing flow, reverse logistics, and supplier relationship management. Benefits include speedy and accurate information, enhanced visibility and tracking, improved productivity, quality and reliability, and reduced operating costs. Challenges to RFID adoption are also listed such as high costs, technical issues, security concerns, and privacy regulations.

1. APPLICATIONS OF RFID IN
SUPPLY CHAIN PROBLEMS

2. Table of Content
Introduction to RFID Technology1
RFID VS Bar Code2
RFID Application in Supply Chain3

3. RFID Tag or Smart Label
RFID Reader
Antenna
Introduction to RFID Technology
“Radio-frequency identification” refers to a technology whereby digital data encoded in
RFID tags or smart labels are captured by a reader via radio waves.
01
02
03

4. RFID vs Bar Code
PARAMETERS RFID BAR CODE
Read Method Radio signals Optical scanner
Line of Sign Not required Required
Read Range 0 – 50 feet 0 – 10 inches
Read Rate Many at once One at a time
Tag Durability Can be very durable Not usually durable
Cost
Typically more expensive than
barcode
Typically less expensive than
RFID

5. Speedy and accurate information
•Better decisions
Enhanced Visibility
•Better Quality Information
Accurate Tracking
•Enhanced process Automation
Improved Productivity
Improved quality and reliability
Reduced Operating costs
•Improved Competitive position
RFID Application in Supply Chain
1
2
3
4
5
1: Demand Management
2: Order Fulfilment
3: Manufacturing Flow
4: Reverse Logistics
5: Supplier Relationship
Management

6. RFID Application in Supply Chain
Easy access to fresh category data
Real-time tracking of inventory
in the warehouse, in transit and
in-store
Inventory accuracy is even more
valuable in an inventory
management environment
In-store product can be located
on the gondolas or on
promotional display
RFID can be integrated with ERP,
WMS, WCS, etc.
1
2
5
4
3

7. Challenges in RFID Application
PARAMETERS CHALLENGES
Fundamental
• High capital costs
• Challenges in finding ROI
Technical
• Quality issues with low cost
tags
• Lack of in-house experts
Security
• Compromise on data during
radio Transmission
Privacy Issues/Government
Regulations
• Privacy concerns and
potential for legislation

8. Thank You…