How with stolen goods as a remote scan is

How RFID Works?

RFID works using radio waves. RFID transponder is a tag containing a silicon chip (the memory)
mounted onto an antenna (the transmitter). This tag is fixed to the item being
tagged. RFD reader scans the tags. Energy is sent to the transponder via radio
waves. These waves power the transponder. Later the information stored in its
chip is transmitted back to the reader for onward processing. The reader
transfers this data to various enterprise applications through specialized
middleware, which also acts as a reader controller and preliminary data filter
and aggregator.

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Benefits of RFID include:

·        
Automated data capturing and comparison leads
to decreased labour costs for warehousing processes; increased accuracy in
warehouse processing and inventory; faster physical inventory process.

·        
Shoplifting is a huge concern for retail
businesses. RFID offers an effective solution. Firms are notified if the
customers are leaving with stolen goods as a remote scan is carried out on them
while they are heading towards the exit. This security solution becomes more
cost effective way of reducing thefts as the cost of RFID technologies rise.

·        
Rise in on-time deliveries and decrease in
inventory levels and safety stocks and reduced inventory of obsolete products
due to improved real-time visibility of supply chain.

 

 

The figure below explains how RFID
tags provide the data required to manage the supply chain

RFID provides information about
when and where merchandise is manufactured, picked, packed and shipped. RFID
also notifies the retailers about the expiry dates of their perishable goods.
Another benefit of RFIDs is that, unlike barcodes, RFID tags can be read
automatically by electronic readers and provides real-time visibility. They
allow synchronisation of information and physical flow of goods across the
supply chain from manufacturers to retail outlets and to the end consumers at
the right place at the right time.

 

 

 

 

 

 

 

 

Case Study: Wal Mart and P&G partnership

1

In year 1995,
Walmart and P &G initiated their plan to implement CPFR technology in their
supply chain.  The way Wal Mart stores are run has completely changed since CPFR
has been implemented. The movement of goods along the supply chain is quite
visible as it corresponds with movements of information passed by RFID reader
for inventory management. The bar code readers store this information and it
can be read anywhere immediately in the distribution chain.

 P&G took complete
responsibility of Walmart’s inventory management after collaboration. When the
products reach the re-order point, the system sends notification to P,
who ship the products. Each product of P at Wal Mart stores has RFID tag.
Stockrooms are notified about urgency in need for restocking by the
self-mounted scanners. In some cases, the system goes all the way to the
individual Walmart store. It lets P monitor the shelves through real-time
satellite link-ups that send messages to the factory whenever a P item
swooped past a scanner at the counter and register.2 P knows
exactly when to produce, ship and display more items at Wal Mart stores with
the help of this frequency in information updates. Products don’t need to be
kept piled up in warehouses by P&G, waiting for Walmart to send the
purchase orders. Invoicing and payments are automated too. This helped P&G
in preventing wastage of time, lowering inventory and order processing costs
and allowed it to charge Walmart “low, everyday prices”.

P&G used EDI and CPFR for managing Walmart’s stock. The supply
chains worked perfectly when there was accurate forecast in sales, but often
broke when there used to be unexpected changes in the demand, especially when
Walmart used to announce special offers or discounts. This problem was solved
with the help of RFID tags, which provide real-time information about what is
happening on store shelves. Wal Mart systems are linked to the P
management systems and sudden or unexpected changes in demand are identified
and reported immediately by the RFID readers.

After implementing RFID technology, both P and Wal Mart
experienced 70% fall in inventory costs and improved the quality of service
from 96% to 99%. RFID also helped them in decreasing administration costs by
re-engineering their supply chains. The logistics software used by P
tracks its trucks with the help of GPS locators. The contents are tracked using
RFID tag readers. This enables the regional managers to reroute trucks for
faster service.

P use RFID tags and technology for their raw materials too.
This makes several tiers down the supply chain visible and allows the suppliers
of P to accurately forecast the demand and production.

There are several other benefits of RFID in the retail supply
chain. It helped Walmart in improving their operations in many ways, such as
providing full visibility in inventory; lowering the losses and shrinkage;
keeping a track of lot and expiration dates; managing work in process data;
enabling the tags to carry real-time databases of item information; assigning
unique serial numbers to items.

Integrated logistics management is a
concept that emphasises teamwork, both inside the company and among all the
marketing channel organisations, to maximise the performance of the entire
distribution system. 3

1 Harso,
Alexander. “How Walmart And P&Amp;G Can Enhance Supply Chain
Management With CPFR Initiatives”. Academia.edu.
N.p., 2017. Web. 28 May 2017.

2Harso,
Alexander. “How Walmart And P&Amp;G Can Enhance Supply Chain
Management With CPFR Initiatives”. Academia.edu.
N.p., 2017. Web. 28 May 2017.

 

3 Kotler,
Philip et al. Principles Of
Marketing. 13th ed. India: Pearson, 2010. Print.