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Supply Chain Management

Usually considered as a complex and knowledge intensive process, management of supply chain can benefit significantly from the implementation of RFID technology

The term Supply chain covers all possible processes involved in

  The flow of goods from manufacturing to customer
  Including manufacturing
  Distribution and transportation
  Distribution and transportation
  Administration and planning

RFID technology has risen to become a revolutionary element in supply chain management. It is not just a replacement for barcodes. RFID ensures that the right goods are available in the right place with no discrepancies and zero errors. It makes the supply chain considerably more precise and improves the efficiency and reliability of the entire chain. As real-time information is made available also administration and planning processes can be significantly improved.


In order to cater to the demands of the market, the goods needs move faster from manufacturer to supplier. In the FMCG industry, products have to be counted several times already in the manufacturing process: during all the stages. Traditionally, these operations are performed manually. But by utilizing RFID tags and readers, products can be counted in seconds. This is due to the fact that RFID tags can be automatically scanned without being in the line-of-sight of an RFID scanner and multiple tags can be scanned simultaneously. For manufacturers this translates directly into cost reductions as labor intensive tasks can be carried out faster and more accurately.

In addition to faster authentication of produced goods, manufacturers can also benefit from increased information gathered with the help of RFID technology. RFID tags can store far more information than conventional barcode labels. This information can be used to optimize production processes. Accurate knowledge of the real-time movements of raw materials and the time needed for specific production steps can be integrated into efficient production planning.

With the help of RFID, manufacturers can also benefit from increased information in regards to repair and maintenance of their machines and equipment. Hence, maintenance can become part of production planning and help to prevent costly production breaks.

RFID in manufacturing processes means:

  less manual work
  less costs
  improved visibility
  improved planning


  Keeping track of the large number of cartons is a very complex as well as time and labor consuming process. However, RFID can be implemented to ease the situation as it can improve information management concerning cargo flow.
  In cases where read-write equipment is placed within the warehouse, all in-house movements are additionally registered in the system. This allows for strategic planning of product locations within the warehouse.
  The information that is gathered with RFID can lead to significant improvements as the tracking and handling of the products can be done in real-time and with great accuracy. In the warehouse, products are easily located as all product movements are tracked and this information is automatically registered in the system. Whilst stock is accurately tracked valuable information concerning losses is also recorded.

RFID based SCM:

With the help of RFID based SCM, it has helped many companies optimize asset and inventory management in internal or closed-loop solutions in which RFID tracks assets, such as vehicles, equipment, and returnable transport items, which stay within the company.

  visibility of accurate real-time information
  fast locating of products
  possibility to record losses
  ability to plan product locations strategically
  Monitoring temperatures of different areas in vessel.


Other advanced transportation uses include placing RFID tags inside gas tanks to automatically record the amount of fuel dispensed and charge the transaction to the system, eliminating the need for drivers to carry credit cards or cash. In addition, RFID tags and readers can help lower costs and reduce CO2 emissions by helping to optimize routing and reduce the number of costly re-deliveries.

RFID technologies can play an important role in helping shippers and logistics service providers gain visibility into the global supply chain.

Once Wal-Mart and the Department of Defense (DoD) identified RFID as a potential cost reduction technology many companies began to use RFID to track product flow. RFID is being used to identify inbound and outbound product. RFID is being used in the warehouse to locate product. It is being used in manufacturing and processing industries to track and locate WIP (Work in Progress) and finished goods. RFID is being used to monitor and track product in transit, and RFID is being used to ensure store shelves are replenished

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