RFID application in scm and vm
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RFID technology can provide benefits throughout the supply chain and for visual merchandising. It allows for item-level tracking of inventory to improve supply chain visibility, reduce costs, and enhance collaboration. Concerns exist around privacy if RFID tags are used to uniquely identify individuals or track consumer movements. Regulations may be needed to guide appropriate RFID use and protect consumer privacy.
RFID application in scm and vm
- 1. Professional Practices RFID APPLICATION IN SUPPLY CHAIN MANAGEMENT AND VISUAL MERCHANDISING Presented By: Mohnish Madkaikar Deeshikha Parashar MFT - 1
- 2. WHAT IS RFID? Radio-frequency identification (RFID) is the use of an object applied to or incorporated into a product for the purpose of identification and tracking using radio waves. It is one of the AIDC ( Automated Identification and Data Collection ) system RFID tags contain following parts: One is an integrated circuit for storing and processing information, modulating and demodulating a radio-frequency signal. The second is an antenna for receiving and transmitting the signal.
- 3. RFID TAGS
- 4. TYPES OF RFID TAGS There are generally three types of RFID tags: Active RFID tags Passive RFID tags Battery assisted passive (BAP) Varying levels of radio frequency give rise to different kinds of RFID tags Low frequency tags (125 – 134 Khz) High frequency tags (13.56 MHz) UHF tags (868 - 956 MHz) Microwave tags (2.45 GHz)
- 5. SUPPLY CHAIN MANAGEMENT It refers to the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the eyes of the ultimate consumer Supply Chain Management (SCM), then, is the effort to optimize these contributions and interactions
- 7. WHY RFID ? RFID tags reduces total costs for labour and inventory while increasing accuracy. RFID is ideally suited for situations when you need to: Identify many items at once Identify items where line of site requirements is highly distributed Find items quickly Identify items even when no human is present (or that human doesn’t follow standard policies)
- 8. WHAT CAN RFID DO ? Improve Supply Chain Visibility End-to-End Process Integration Eliminate Artificial Uncertainty and Reduce Natural Uncertainty Improve Supply Chain Measurement and Benchmarking Capabilities Enhance Collaboration with Trading Partners Optimize Reverse Logistics
- 9. RFID AND INVENTORY MANAGEMENT Automatic Product Receiving Automatic Self-Checkout Directed Put-away Anti-theft/Shrink Systems Automated Shipping Operations Returns/Warranty Authentication Smart Shelves Product Recall Management Product Freshness Management Continuous/Real-Time On- Hand Inventory Counts Enhanced Point-of-Sale Processing Intelligent Products
- 10. ITEM LEVEL RETAIL TRACKING
- 12. RFID INCORPORATED VISUAL MERCHANDISING Visual Merchandising is a very powerful tool that can be effectively used to program, channel, and lure customer into impulsive buying. Paxar Corporation showcased its magic-mirror "smart mirror“ Magic-mirror provides retailers with a means to reach customers on an 'emotional' level and positively influence purchase decisions at the moment of choice.
- 13. PRIVACY RELATED ISSUES Privacy related issues associated with the use of RFID technology were identified by FTC , which should come under Fair Information Practices As technology to enable large-scale collection and use of personal information has evolved, and awareness of the potential for misuse of that information has grown
- 14. PRIVACY RELATED ISSUES Consumers may not be aware that their product or its packaging are tagged Tags, even if disclosed, may be non-removable Consumers may not be aware of locations of readers Item-level tags may be used to establish an individual’s presence at a specific place and time, or track a person’s movements Tags may be read by those other than intended, i.e. hackers Combinations of tags could be used to uniquely identify individuals
- 15. PRIVACY RELATED ISSUES Tags and loyalty programs could be combined to embed personal identify information in tags Marketers may target individuals based on tagged items not necessarily purchased but merely carried into range of a reader There are no privacy regulations in place to guide RFID tag use
- 16. CONCLUSION Globalization, competition, and increasingly sophisticated and informed customers are creating ever greater supply chain challenges for today’s businesses RFID provides clear benefits throughout a supply chain, with distinct implications at different level. Better availability and management of inventory provides immediate efficiencies and the ability to streamline
- 17. REFERENCES • www.fibre2fashion.com • www.rfidjournal.com • www.scmnews.com • www.infosys.com • www.apparelmag.com • Landt, Jerry (2001). "Shrouds of Time: The history of RFID • Rahman, Rohisyam (2007-07-23). “Case Study: Malaysian Smart Shelf” • Fashion Retail – Curtis • Inside fashion Business – Kitty G. Dickerson • Fashion Retailing - Ellen Diamond