SEMI-FINAL REQUIREMENTS FOR SUPPLY CHAIN

MANAGEMENT

RFID (Radio Frequency Identification) is used to identify and

detect individual objects, including products and items. For
inventory management, RFID has some big advantage over
barcode label which have become standard operating procedures
in warehouses, distributions centers and facilities. By using these
technology, you can save up resources and be sure which item
are stock and store. RFID also improves visibility of inventory by
providing real-time updates and faster scanning. With RFID
readers placed at each portal or doorway, you can know exactly
when inventory enters or leaves a location; with barcodes,
employees could potentially move an item without scanning it,
which erodes data accuracy.
The State of RFID implementation in North America
According to BCC research, North American RFID Market on
Pace to Hit $13.5B by 2023. RIFD systems are considered to play
an important role in Internet of Things (IoT) and near-field
communication (NFC) systems. As such concerns over digital
security and growth of the Internet of Things are two factors
helping to boost the RFID market in North America. RFID
technology used for security applications, specifically for safety
tracking of devices, products and components in the retail,
transportation, agriculture and medical industries, as well as many
others. The largest user of RFID technologies is the
transportation/logistics industry, where these identification
systems are deployed in supply chains to help track shipments
from the production floor to final destinations. In the healthcare
industry, RFID growth is driven by applications that involve patient
health monitoring, diagnostics, patient identification and
scheduling of medication, among others. Identification/security
and e-payments applications are expected to account for the
highest market share because governments in the North
American region are regulating the use of RFID technology in
these application sectors, and this trend is expected to remain the
same during the forecast period.
To obtain the RFID market size and growth rate in the
North American region, primary factors considered were RFID
tags, tag-readers, hardware, software and integration services.
The findings and conclusions of the report are based on
information gathered from all types of participants in the market,
including manufacturers, distributors, end users, consultants and
integrators.

The State of RFID implementation in Europe and Asia

European retailers, manufacturers and other companies have
embraced radio frequency identification, and the vast productivity
improvements that the technology brings, at a faster pace than
businesses in any other region. RFID has become a priority of
every industry in Europe. They gain advantage and save cost by
investing in automatic identification. Many Europeans already use
RFID-equipped cards to access, for instance, their work premises
or pay for their public transport fare. The technology is also
successfully used for animal tagging, in order to protect the
consumers from a host of animal diseases or help them trace
their lost pets, and as anti-fraud protection in luxury items.
Europeans were far more comfortable with RFID when it first
gained the business world's attention back in 2003, and today the
European Commission has signed a voluntary agreement with
industry, civil society, ENISA (European Network and Information
Security Agency) and privacy and data protection watchdogs in
Europe to establish guidelines for all companies in Europe to
address the data protection implications of smart tags (Radio
Frequency Identification Devices – RFID) prior to placing them on
the market.
 Just like in Europe, there has a widespread usage of RFID in
Asian countries specially in China, Japan, Korea and Taiwan.
Radio Frequency Identification (RFID) system uses radio waves
to remotely capture and process information stored in a tiny
silicon chip. Having the potential to replace bar codes on
consumer products, RFID technology can enhance the efficiency
in material handling/transportation and can provide more
intelligence in business transactions. Although there are
challenges and obstacles with the adoption of RFID in businesses
worldwide, governments of a few Asian countries have
established proactive policies and have taken supportive actions
to facilitate the development of this emerging industry.

Use resources available on the Internet to prepare a brief report

on the RFID implementation at Wal-Mart Stores, Inc.

Walmart has grown to the world’s largest retailer by

becoming the masters of supply chain management. This in turn,
allows them to bring the lowest possible price to customers. With
this in mind, Walmart has endeavored to become a leader in the
area of implementing supply chain technologies to achieve the
kind of operational efficiency that make these cost saving
possible. Using RFID to identify and track inventory through the
supply chain is ideal because this technology allows for fast and
easy real-time transfer of data stored on tags on a product or
pallet. RFID tags can also transfer much more information than
bar codes traditionally used for this purpose. Walmart
continuously boasts numerous benefits of using RFID technology
for effective inventory management, reducing the Bull-whip effect
and reducing excess inventory across the entire supply chain.
By managing inventory with RFID, companies like Walmart
can make shopping with a physical retailer more efficient. One
way Walmart does this is by digitizing inventory information. With
accurate stock information available online, customers can see
what items are currently in stock at each store and can also order
out-of-stock items.
Walmart also offers a grocery pick-up system where customers
can purchase goods online and then retrieve them from the store
when they are ready. Some locations also offer grocery delivery.
Without the use of RFID to track the quantity and location of in-
store goods, this grocery system would likely be costly and
inefficient. This enables Wal-Mart to satisfy customers need
quickly and improve level of efficiency of distribution center
management operations.

In your own words why is inventory management important to

SCM?

The main objective of inventory management is to keep the

product safe. It is important for small businesses because it helps
them prevent stock outs, manage different locations, and ensure
accurate recordkeeping. Inventory solution makes these
processes easier than doing it manually. Inventory management
enhances business operations with the effective flow of goods
and services. Inventory Management and control implies the
controlling of business stock or controlling the movement of
products and services following their demand. Inventory
management supervises the flow of goods from manufacturers to
warehouses and from these facilities to point of sale. A key
function of inventory management is to keep a detailed record of
each new or returned product as it enters or leaves a warehouse
or point of sale.
Now, what makes inventory management important to supply
chain management? Well, smooth inventory
management process is key to avoid having any kind of
bottlenecks, which can have a negative impact on revenue.
Effective inventory management will optimize the supply chain,
eliminate cash flow and reduce the possibility of appearance
on inventory shortage caused by variable orders. Thus, it is
important to optimize inventory management to satisfy the
company's strategy goal. With proper managing of inventory,
company or the organization can facilitate the balancing of supply
and demand with respect to supply chain.