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Chain Single
Chain Single

RFID Solutions for the Management of Supply Chain

RFID technology is facilitating a major innovation for managing the supply chain. From an article by John Lőrinc in December 2006 edition of the Globe & Mail Report on Business Magazine, each year, according to one expert quoted by the Federal of Commerce, American merchants lose as much as 300 billion U.S. dollars (U.S.) of revenue because they have lost track of goods somewhere in the path between the factory and store shelf. Loss of income is not the only concern in the supply chain, improving productivity in transporting goods and ensuring the origin of goods are also of interest to professionals managing the supply chain. RFID technology offers solutions to all these needs.

Overview:

Where the organization has a beginning to reap the benefits of RFID? To answer this, an overview technology is a good start. The concept behind RFID is simple: An item (product, or pallets) has an RFID tag attached to it. The tag contains a small integrated circuit (IC) chip that contains a unique identification and an antenna that can communicate with an RFID reader. When the tag is attached to the product or pallet and then read by the RFID reader, unique identifier that is associated with the product or platform through its enterprise resource planning (ERP). This unique ID stays for the rest of travel products from the factory, right through the purchases of customers in the store. RFID readers are placed at each critical junction in the supply chain. As the products or pallets pass through these readers, their ERP system is updated immediately in the flow of goods. This automation reduces process time with the manual entry and the potential for human error on the details of bills of lading, to provide time updates right in the case of goods, it becomes more secure the integrity of its product shipments and helps you address bottlenecks in the system faster.

A starting point:

Therefore a good starting point for implementing RFID technology is on the pallet or box / container level. The assembled products these vessels are then tracked in lots defined in the source. The benefits here are less than the labels are required, since a single tag is identified with a batch of goods rather than the individual unit of product. Another advantage of tagging of pallets and containers is continuously track the whereabouts of these vessels used to move products and this helps to reduce these assets are lost in the supply chain and the need to be replaced. Another reason for starting an RFID solution at container is because many individual products pose challenges for RFID technology, by the way they are packaged. Metal goods, products and articles containing liquids too small a challenge to track individual items. RFID solutions are available here, but the cost rises considerably. The address of technology is towards the management of all individual units of products. With advances in RFID technology, the cost per tag will be driven low and this RFID tagging will allow more units of each product.

Open Standards:

The realization of the benefits of RFID technology is also highly dependent on open industry standards. Open standards will allow manufacturers, distributors and retailers to use a common type of label (s) and the reader (s) at the same time on this hardware to interact with their own ERP needs and deliver the returns promised by RFID technology. EPC Global Inc., body standards that manages the UPC (Universal Product Code) information in bar codes, sets the basic rules of how the product information encoded on RFID chips. The standard set for supply chain management is known as "GEN 2." GEN 2 has brought significant advantages on the evolution previous standards of Class 0 and Gen 1 and include:
(A) GEN 2 can write sometimes several labels,
ranges (b) GEN 2 has already read
(C) GEN 2 has a greater capacity for data storage and
(D) GEN 2 has more reliable and faster read rates.

About the Author

GAORFID Technology Solutions Team

http://www.gaorfid.com

Marketing@gaorfid.com
GAORFID Inc
601 Milner Avenue, Suite 300
Toronto, Ontario
M1B 2K4
Canada
Tel: 416-292-0038
Fax: 416-292-2364

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