RFID

ASSIST
SUPPLY
CHAIN
MANAGEME
NT SYSTEM

Name: Wu Sir, Low

Course: Business
Logistics
 Outline
Radio Frequency identification (RFID) and
Supply Chain Management (SCM)

Benefits of RFID
better inventory control
minimise product shrinkage
reduce cost

Challenges of RFID

Conclusion
 RFID and SCM

Transmit data and remotely storing

Microchip stores data, antenna transmit information

Reader interact with middleware

Middleware throughout manufacturer, retailer

Benefits of RFID application for SCM:
Better Inventory Control

Process automation in shelving, cross-

docking, and picking
Update inventory quantities
Track inventory visibility
Reduce out of stock
Reduce holding of obsolete inventory
Lower safety stocks
Benefits of RFID application for SCM:
Better Inventory Control
Benefits of RFID application for SCM:
Product Shrinkage
Constantly issue,
especially for the high
volume products
Able to control the
movement of goods
Improve security
Prevent theft
Benefits of RFID application for SCM:
Cost Reduction

Potential return on investment

(ROI)
RFID automated data capture
Cut down labour operating
cost
Reduce claims and deductions
cost from customers
Out-of-stocks cost
Logistics cost
Benefits of RFID application for SCM:
Cost Reduction

For example
Wal-Mart
Invested $3 billion
in the system.
Save
approximately
$8.35 billion
annually
 Challenges
Change business processes
Cost
Tag readability and
reliability
 Conclusion
RFID technology assists SCM in a wide range of
organisations
Accomplish greater visibility and efficiency

Collaborative environment
Challenges constrain
RFID is more than a technology, potential return
on investment
RFID enhancement in the future assists demand
and supply
 Thank you!
Any Questions?