RFID Applications in Supply Chain Management

-- End Ad Box --->identified. This allows product marketing managers to
There are as many RFID applications as there aretake corrective action to goose demand through
businesses. Some RFID applications have been aroundpromotional or advertising activity before a 'fire sale'
for decades, others are just starting to emerge.is needed. Thus RFID applications help product
RFID, itself, is not a new technology; however, it ismarketing managers maintain their margins.
being used in many new and different ways. TheRFID applications are, also, a significant aid in deterring
roots of RFID technology can be traced back totheft in retail environments. Items tagged with RFID
World War II when radio waves were used todevices can trigger alarms when they are removed
identify friendly aircrafts, in the 1970s New York Portfrom the store without being properly deactivated.
Authority introduced an RFID device used for tollRFID applications have been successfully deployed
collection. While RFID applications used earlier are stillfor anti-theft purposes for several decades.
around today, many more RFID applications haveRFID Applications in Brand Protection
emerged since then.RFID applications can be used to protect brand
Today, the largest RFID application aids companiesidentity by product marketing managers and to
and governments in supply chain management. RFIDprotect consumers from counterfeited products.
is being used to manage products through production,RFID applications in anti-counterfeiting are, generally,
distribution and retail. Manufacturers can especiallyaimed at high-value end consumer products. The
benefit from implementing RFID applications in supplyunique identification number on standard RFID tags
chains because they can decrease costs associatedcan be used to verify the authenticity of the
with product tracking and inventory management andproducts to which they are attached. These unique
increase the accuracy and timeliness of inventorynumbers combined with encryption algorithms can
data. Experts say that early adaptors of RFIDcreate authentication schemes that are extremely
applications in supply chains have seen a significantdifficult for counterfeiters to circumvent.
increase in revenue.RFID applications in anti-counterfeiting can be used in
RFID Applications in the Distribution Chainmany industries, including pharmaceuticals, electronics,
RFID Applications can be used to monitor andentertainment, retail, IT and many more. It is
manage the movement of the finished productsestimated that counterfeiting costs legitimate
throughout a supply chain. RFDI tags can be attachedcompanies nearly $600B worldwide each year. The
directly to the items and materials or they can bepayback even modestly successful anti-counterfeiting
attached to the containers that carry them. Pallets,efforts can be very high. RFID applications represent
trailers, totes, carts, cargo containers, and reusableone of the most promising methods for countering
transport items can all be tagged. Readers placedthis major problem.
throughout a facility can monitor movement andBy placing RFID tags on products at the point of
location of inventory, thus providing real time data.manufacture, manufacturers can trace products
This can be within a warehouse, a freight yard orthroughout the supply chain. The pharmaceutical
within a retail location.industry is creating an RFID application that will
RFID applications in the supply chain enable moredocument the authenticity of their products at retail.
frequent and accurate inventory counts RFIDNot only will the products have a unique ID, but
applications in the supply chain can also decreaseinformation about the chain of custody for the
costs associated with inventory countingproduct will be stored on the RFID tag or in an
In addition, RFID applications in fleet managementassociated database. If the product is not properly
have demonstrated significant ROI. RFID applicationstagged or the tag is not associated with the proper
in fleet management enable a more cost-effectivechain of custody - then you know the product is
long-range tracking solution, global tracking ofcounterfeit.
containers and cargo, reliable tracking of capital andWhile many anti-counterfeiting efforts are a large
inventory assets during transportation and increasedexpense that most US companies face, RFID
security. By placing RFID tags on long range vehicles,applications in anti-counterfeiting have a high ROI. By
trailers or other mobile assets, companies can gainplacing RFID tags on products at the point of
visibility into their business' assets' utilization.manufacture, not only can products be traced
RFID Applications in Retail and Product Marketingthroughout the supply chain, but it can also prevent
As in the distribution chain, RFID application in retailcounterfeit products from entering into the supply
can greatly aid in reducing the cost of keepingchain.
accurate inventory data. With fewer people and lessConclusion
time, retailers can keep accurate inventories.RFID application in the supply chain offer solutions
Associates can spend more time providing service towhen it is impractical to use other technologies or
customers rather than counting product.manual labor to collect data. RFID applications have
RFID Applications in retail can greatly aid in ensuringmany benefits; RFID applications can help in asset
proper product mix and availability are maintained fortracking, inventory and product management and
customers. The accuracy of the real time inventoryprovide solutions for anti-counterfeiting. Data
data that is provided by RFID applications, enablescollected to accomplish all these goals can provide
product marketing managers to ensure that hotsuppliers and end users with the tools and information
selling items are properly stocked and to ensureto make management decisions on the fly resulting in
replenishment order for these items are placed asa better ROI.
quickly as possible. Slow moving items can be quickly