Posts: 3,561
Threads: 923
Joined: Sep 2010
By:
Arjit Srivastava
Supervised by:
Prof. Dr. rer. pol. Henrik Janzen
&
Prof. Dr. Stan Oliver
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Abstract
RFID: Strengthening the Weakest Link for an intelligent supply chain!
This is something which is easier said than done. According to all the SCM studies carried over world-wide it is now evident that the weakest page link in the supply chain is visibility. Supply chain visibility implies that data about the demand forecasted , the production planned , inward-outward inventory movements, logistics, warehousing, and all other activities that lead up to customer demand satisfaction is available to all members in the supply chain. The string that well connects these elements i.e. visibility across the supply chain is extremely sensitive, a small jerk at one end can cause big fluctuation in other side. The fundamentals of selling have not changed in over a century. The goal is to have the right products at the right place at the right time—when the customer is ready to buy. To do that, the sellers have many overarching business imperatives which make SCM even more complicated, a few of the main concerns being:
• Volatility in demand planning
• Injudicious production planning & scheduling
• Ineffective inventory management
• Obscured logistics & distribution models
Keeping this backdrop in mind the objective would be oriented towards following a twofold approach to the problem:
1. Firstly the intention would be towards studying in detail the different stages of a supply chain like, demand forecasting, production planning, and inventory management and distribution models. This will identify the perceptible stumbling blocks or loopholes which make a supply chain less agile.
2. Secondly, the intention would be towards appreciating the potential and impact of RFID enabled Inventory Management solution in the current supply chain models. This portion of work will help in understanding how an RFID enabled inventory management approach eventually enhances the visibility of inventory in warehouses and across different stages in the supply chain, through tagging and unique identification of cases /pallets / product items.
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Presented By,
Siddharth. S
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RF-ID IN SUPPLY CHAIN
What is Supply chain??
SUPPLY CHAIN.
A Better View Of A Basic Supply Chain Along With Material & Information Flows.
Today’s challenge: Clear needs for tighter supply chains
Security and counterfeiting−
Product diversion, including smuggling, is large and increasing
−Counterfeiting (10% of products) over $100B yearly
−Terrorism –more than 50,000 containers enter US ports daily, 12,000 trucks enter US through Mexican border alone –ONLY 1-2% are inspected•
Social issues, safety and regulation requirements−
More mandates will be on the horizon (FDA, homeland security, etc.)−
Drugs in transit, prisoners, babies, children, park visitors.
Today’s challenge: clear needs for tighter supply chains
Product costs, shrinkage and waste−
Up to 20% of foods discarded due to spoilage in the supply chain
−Global shrinkage from expiry, loss, damage before delivery
−Direct and indirect cost of cargo theft is $20-60B yearly
−75% of the cost of a retail product is getting it there•
Imbalance between supply and demand
−Stock outs at retailers cost 6% of sales
−Over 50% of trucks on roads either part fully empty or returning unwanted or expired products
•Today’s challenge: precision supply chain management is becoming an imperative
Proper inventory balance•
Perishable goods management •
Tracking of regulated commodities•
High waste and write-offs •
Counterfeiting and theft•
Archiving and security inefficient
decisions based on static
and inaccurate data•
Retailer/distributor requirements
RF-ID IN SUPPLY CHAIN.
“A key to automating everything”
- Radio-frequency identification (RFID)
Invented in 1948 by Harry Stockman
Initial application was in World War II by US army
Came into commercial use in 1990s
Basically RFID system composed of a tag containing a chip, a reader, its antennas and a computer.
RFID tags and readers have to be tuned to the same frequency to communicate.
RF-ID IN SUPPLY CHAIN
What is RF-ID??
Radio-frequency identification (RFID) is a technology that uses communication via radio waves to exchange data between a reader and an electronic tag attached to an object, for the purpose of identification and tracking.
It is possible in the near future, RFID technology will continue to proliferate in our daily lives the way that bar code technology did over the forty years leading up to the turn of the 21st century bringing unobtrusive but remarkable changes when it was new.
RFID makes it possible to give each product in a grocery store its own unique identifying number, to provide assets, people, work in process, medical devices etc. all with individual unique identifiers - like the license plate on a car but for every item in the world. This is a vast improvement over paper and pencil tracking or bar code tracking that has been used since the 1970s. With bar codes, it is only possible to identify the brand and type of package in a grocery store.
RF-ID IN SUPPLY CHAIN.
RFID: Strengthening the Weakest Link for an intelligent supply chain.
The weakest page link in the supply chain is visibility.
Supply chain visibility implies that data about the demand forecasted , the production planned , inward-outward inventory movements, logistics, warehousing, and all other activities that lead up to customer demand satisfaction is available to all members in the supply chain.
The string that well connects these elements i.e. visibility across the supply chain is extremely sensitive, a small jerk at one end can cause big fluctuation in other side
Volatility in demand planning
Injudicious production planning & scheduling
Ineffective inventory management
Obscured logistics & distribution models
Rapid embrace and evolution:
RF-ID IN SUPPLY CHAIN.
Types of RFID Tags.
RFID can be either be passive, using no battery
OR
Active with an on-board battery that always broadcasts or beacons its signal.
Passive Tag
A passive tag is an RFID tag that does not contain a battery; the power is supplied by the reader. When a passive RFID tag encounters radio waves from the reader, the coiled antenna within the tag forms a magnetic field. The tag draws power from it, energizing the circuits in the tag. The tag then sends the information encoded in the tag's memory
Active Tag
An RFID tag is an active tag when it is equipped with a battery that can be used as a partial or complete source of power for the tag's circuitry and antenna.
Some active tags contain replaceable batteries for years of use; others are sealed units. (Note that It is also possible to connect the tag to an external power source.)
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