RFID technology has risen to become a revolutionary element in supply chain management. 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.
RFID Technology is ideally suited to address and solve many of the following problems.
Manufacturing companies and third-party logistics providers are facing the most complex and volatile business environment in their history. With fewer people to provide analytical support supply chain organizations are being asked to provide better cost and service performance than ever before.
Complex and extended global supply networks are a consequence of globalization and the chase for “low cost” manufacturing. Manufacturers are finding it difficult to manage a volatile demand environment with a complex, extended supply chain and companies are revising the supply side of their supply chains.
The fastest approach is to move to an aligned “business interaction network” by having all the information necessary to make better business decisions available in one convenient place. The supply chains in organizations continue to be affected by both internal choices and external forces relating to agility and responsiveness.
- Many manufacturers are experiencing significantly longer product lead times than ever before.
- Volatile demand is the new norm, with “information-empowered” customers who are less brand loyal and far more selective than ever before.
- Growing regulations in the area of traceability, is troubling to manufacturers and many prefer to be proactive rather than reactive.
- Inflation and direct input costs remain a concern for manufacturers that lack the ability to make price increases stick with their customers.
Although many of these external pressures are not new, the extent to which they impact the supply chain organization continues to grow.
The net effect of these industry trends has been to put immense pressure on the supply chains to improve speed and responsiveness through better visibility and faster decision making.
For additional information on the role RFID Technology plays in improving the supply chains performance please visit our section on: RFID In Supply Chain.