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rfid in supply chain management

Supply chain management is challenged by every industry that they serve and generally seen as complex and knowledge intensive process. As many business businesses utilize channel partners to produce high volumes of valuable assets, these businesses are faced with managing these partners they rely on for manufacturing, shipping, distribution, and logistics.

Supply chain covers all possible processes involved in the flow of goods from manufacturing to customer; including manufacturing, distribution and transportation. Therefore, supply chain management covers all these steps in combination with marketing decisions, customer demand, in alignment with general corporate strategy and goals. Supply chain management can benefit significantly from the implementation 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.

During the past years, more and more companies are integrating RFID technology into their strategic planning, because it provides significant advantages to supply chain performance. There are far more benefits gained by RFID implementation into supply chain and logistics operations than just improving identification of products, shipments, and assets. However,already the most common benefits prove that RFID is worth the investment.

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