The document discusses the significance of radio frequency identification (RFID) technology in the apparel and textiles supply chain, highlighting its benefits in enhancing asset visibility and productivity while mitigating risks. It details the components of RFID systems, including tags, antennas, and readers, and contrasts them with barcodes, emphasizing RFID's superior performance in various conditions. Additionally, the document outlines specific benefits of RFID in supply chain management, manufacturing, and distribution processes, including improved inventory management and reduced shrinkage.

1. • Marathon races
• Airline baggage tracking
• Electronic security keys
• Livestock tagging
• Electronic toll pricing
• Library
• Video stores
• Defense
• Apparel Manufacturing
• Retailing
– Stock levels, prices, expiry dates, remote access of products
• SCM
1. RFID Technology
- RFID (Radio Frequency Identification) is industrial digitalization technologies with benefits
in asset visibility, employee productivity, risk management, loss, and theft mitigation.
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2. RFID Technology in apparel applications
The value of radio frequency identification (RFID) technology is critical for the clothing and
textiles supply chain.
It is because the fashion business is characterized by:
 Wide assortment of seasonal items with short life-cycles,
 high levels of impulse-purchasing and
 Complicated distribution and logistics operations
 Poor inventory management & Reduced supply chain visibility
 Extended checkout period & Lack of personalization and flexibility
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4. RFID Systems
ASSET
TAG
Antenna
READER
HOST SERVER
Application
Software
API
Customer
’s MIS
Powe
r
TCI/IP
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What are the Main Components of RFID Technology?
Tags
RFID tags are what stores and transmits the data that needs to be deciphered. The tags
can be attached to assets to send data to the antenna. The microchip embedded in the
tag is what stores the tag's ID and programmable data related to the asset. This stored
data is then transferred to the reader through antennas.
Antennas
Antennas are necessary elements in an RFID system because they transmit the RFID
tag’s data to the reader. Without some type of RFID antenna, whether integrated or
standalone, the RFID reader cannot correctly send and receive signals to RFID tags.
Readers
RFID readers are connected to the antenna and receive data from the RFID tag. The
reader is what receives and converts the radio waves into digital data on a computer
database.
There are two types of readers. There are Fixed Readers and Mobile Readers. Fixed
readers are typically mounted to walls or other objects and stay in one location to read
data stored in a tag. Mobile readers can be installed or carried anywhere it is needed.
Computer Database
The RFID system requires a computer database to process data stored in tags. This
software can program tags, manage devices and data, remote monitoring and hardware
configuration.

5. SCM benefits from RFID
• Tracking helps in
– Inventory reduction
– Increased visibility
– Improved decision making
– Improved collaboration
amongst the partners
– Improved pricing
– Fewer stock-outs
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• Manufacturing Process
– Track the production of the part
– Instructions to produce
– Feedback to the ERP system about the status
– Efficient bottleneck management
• Distribution Process
– Efficient consignment handling
– Pallets with mixed cases (non-uniform) benefit
more
– Warehouse management
– Shorter order-to-cash cycle

6. SCM Benefits from RFID
• Collaboration
– Increased matching of supply and demand
– Reduction in bull-whip effect
– Improvement in forecasting and demand management
• Improvement in Inventory Shrinkage
– Two percent of total sales is lost in inventory shrinkage
• Employee theft (48%)
• Shoplifting (32%)
• Administrative and paper error (15%)
• Vendor fraud (5%)
• Increase in number of empty packets
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7. Bar Code Vs. RFID
Bar Code Deficiency RFID Solution
Line of sight technology Able to scan and read from different angles and
through certain material.
Unable to withstand harsh conditions (dust,
corrosive), must be cleaned and not difformed.
Able to function much better in such conditions
No data adition option Write enable
No unique identification Unique codeing is possible and item can be
tracked at individual level
Slow and labour intensive Fast and less labour intensive
Easy to tamper and copy Difficult to copy and tamper
Little potential for further development Technology advancement is posible, new chip,
better packaging.
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