RFID
- 1. RFID Su Yan [email protected]
- 2. contents 3. The impact of RFID on supply chain 1. Background efficiency RFID 2.What is RFID? 4.Conclusion
- 3. Background Wal-Mart Stores, Inc. The top 100 suppliers must tag pallets and cases shipped to three Dallas-area distribution centers by January 2005.
- 4. Department of Defense. Pentagon suppliers must place RFID tags on cases or pallets shipped to the DoD by January 2005.
- 5. Food and Drug Administration. The organization recommends that all pharmaceutical producers, wholesalers, and retailers begin developing plans to place RFID tags on pallets, cases and unit items by 2007.
- 6. What is RFID? Radio Frequency IDentification •Tags •Readers
- 7. tag reader
- 8. tag tag tag tag tag Pallet with RFID tags
- 11. The impact of RFID on supply chain efficiency Bullwhip effect VMI ( Vendor-Managed Inventory )
- 12. Vendor-Managed Inventory store Inventory Vendor Levels Replenishment Retailer Distribution center Monthly or Weekly Cycle Replenishment
- 13. Replenishment in a Consumer-Driven Supply Network Real-Time inventory and demand information reported hourly or daily Daily and Event-Driven Replenishment Shelf Store consumer Manufacturer Shelf consumer Retailer Distribution Shelf Center Replenishment consumer Inventory Inventory Inventory Information Information Information RFID based Real-Time Inventory and Demand Data
- 14. More accurate information • Received at distribution center • Departed distribution center • Received at store • Departed store stock room (arrived at shelf) • Case (tag) destroyed
- 15. immediate benefits • Better control over overage, shortage, and damage claims management and the ability to better assign responsibility to the supplier, the carrier, or Wal-Mart • Better control over product recall • Data that improves processes through collaboration between Wal-Mart (retailers) and its suppliers
- 16. For the first time, quantification of lost sales.
- 17. In the long term, retailers and manufacturers can benefit from the RFID Retailer benefits • Reduction in out-of-stock items • Store and warehouse labor reduction • Reduced inventory Manufacturer benefits • Inventory visibility • Labor efficiency • Improved fulfillment • Improved customer service levels
- 18. The closed-loop supply chain process Supply Chain Planning planning moniter 4. Act 1. Plan 3. Check 2. Do Execution Systems Event Management RFID
- 19. However • Replenishment from many resources The ideal supply chain & pull process chain The closed-loop supply chain supply • significant economics of scale in manufacturing and transportation
- 20. Conclusion • Allow real-time tracking of products, or at least cases and pallets • Largely reduce lost sales • Consumer-Driven Supply Network
- 21. Reference: CLAUS HEUNRICH, RFID and beyond-growing your business through real world awareness, WILEY