Application of RFID in Supply Chain Management

The RFID technology system in business is composed of RFID tags and readers. RFID tags are integrated circuit I℃ chips with antennas, data is stored on I℃, and communicate with the outside through antennas. There are many types of RFID tags in terms of size, operation mode, accuracy, and cost. Different types can be selected according to the needs of different enterprises. RFID readers are composed of one or more antennas for receiving and sending signals and a microprocessor for decoding received signals. The processed data is connected to the ERP system host via conventional cables or local wireless networks WLEN. The reader can be made with a handheld terminal, or it can be fixed and installed in a certain location, such as the entrance of the factory, the door of the arrival warehouse, the shelf or the label information on the production line is sent and received through radio frequency. RFID does not require the visual connection required by barcodes between the object and the reader. Thus, the identification and information storage process can be completed without supervision. RFID can be read through packaging, transport containers and a variety of materials other than metal. Up to 12 RFID tags can be read at the same time.

The application value of RFID technology in business

From the perspective of a single enterprise, RFID technology has improved the enterprise's warehouse management system and ERP system, making the entry and exit of goods in and out of the warehouse more convenient and faster. RFID technology has strengthened and simplified the information of components and finished products used in production, warehouse receipt and delivery of goods, and goods received by customers, providing enterprises with more accurate, detailed and timely data than barcodes, and the collected data is of higher quality, without increasing costs, and even reducing operating costs. In addition, RFID identification technology can reduce the loss of goods in enterprises, better control distribution channels and distribution security, and improve after-sales service levels.

From the perspective of the entire supply chain, the modern supply chain is a network composed of producers, distributors, retailers and third-party logistics, as well as information exchange systems such as products, raw materials, orders, and freight settlements established on this basis. RFID makes this information system public and standardized. RFID enables each enterprise in the supply chain to use and manage specific public information such as the situation of goods in the supply chain. These public information replaces the exchange of private information between supply chain partners, improves the flexibility of the entire supply chain, and enables enterprises to choose suitable partners in a larger range, which is convenient for improving the management synergy between supply chain partners.

RFID application design in supply chain process

1、Supplier

Suppliers can use RFID technology in the manufacturing process to complete the operation of automated production lines, realize the identification and tracking of raw materials, parts, semi-finished products and finished products on the entire production line, reduce manual identification costs and error rates, and improve efficiency and benefits. For example, on an assembly line that uses JT (JustinTime) to manage production in a timely manner, raw materials and parts must be delivered to the designated workstation on time. After using RFID technology, companies can quickly and accurately find the raw materials and parts required for the workstation from a wide variety of inventory by identifying electronic tags. In addition, RFID technology can also help managers issue replenishment information in a timely manner according to production progress, achieve balanced and steady production of the assembly line, and also strengthen quality control and tracking. After the product is completed, the supplier adds a radio frequency identification tag (RFID) to each product or box of goods it produces. It contains a unique product electronic code stored in the chip of the tag. These tags have a miniature radio frequency antenna. Through these tags, companies can automatically identify, count and track the goods.

At the factory where the goods leave, the company installs an RFID reader. When the goods leave the factory, the RFID reader at the shipping port sends radio frequency waves to the RFID tags on the goods to activate these tags and power them at the same time. The tags then begin to revive and emit their respective ID numbers. The reader at the factory begins to read these tags to obtain the tag information and record it until all the tags have been read.

2、Delivery Center

In the transportation process, RFID tags are affixed to the goods and vehicles in transit, and RFID receiving and forwarding devices are installed at some checkpoints on the transportation line. When the receiving device receives the RFID tag information, it is uploaded to the communication satellite together with the location information of the receiving place, and then transmitted to the transportation dispatch center by the satellite and sent to the database. In this way, the location of the goods can be known at any time to ensure the safety and integrity of the goods.

In the distribution process, the use of radio frequency technology can greatly speed up the distribution speed and improve the efficiency and accuracy of the picking and distribution process, and can reduce labor and reduce distribution costs. If all goods arriving at the central distribution center are affixed with RFID tags, when entering the central distribution center, the pallet passes through a reader to read the label content on all the boxes on the pallet. The system checks this information with the shipping record to detect possible errors, and then updates the RFID tag to the latest storage location and status of the goods.

In the warehousing process, when the traditional barcode warehousing operation is used, the goods are first moved to the receiving area, the type and quantity of the products are manually inspected, and then the operator uses a barcode scanner to scan the goods in turn as a warehousing record. When the goods are transported to the warehouse and the warehousing procedures are handled after the RFID technology is adopted, there is no need to open the package to check the goods inside because there is an RFID reader installed in the unloading area. You only need to check and confirm the corresponding purchase order, and then you can directly check and enter the warehouse. In this way, the entrance, inspection, warehousing record and cargo allocation operations are completed at one time, reducing the workload of handling and saving the time of warehousing and management.

Similar to warehousing, when the goods are shipped out of the warehouse, there is also an RFID reader installed in the unloading area, so there is no need to open the package to check the goods inside, and you can directly inspect and accept the goods out of the warehouse. Under RFID technology, the verification and outbound records are completed in one step. When the reader reads the outbound goods, the detailed information of the goods, such as number, name, quantity, etc., will be displayed. The staff will select the corresponding items based on this information and check them at the same time. If the verification is correct, they can be shipped out immediately. It can be seen that the use of RFID technology shortens the operation process of entering and leaving the warehouse, and greatly reduces the equipment cost and labor cost required for handling.

3、Retailers

When the goods arrive at the retailer, there is also an RFID reader installed at the retailer. Once the goods arrive, the retailer's retail business system will be automatically updated and the information of each box of goods will be recorded. That is, the retailer can automatically confirm the inventory of the goods, which is very accurate and reliable.

When taking inventory of goods, since each packaging box and product is affixed with an RFID tag, the clerk only needs to hold the RFID reader and pass through all the shelves in turn, and the reader will automatically obtain the information recorded by all the tags, which will greatly reduce the phenomenon of omissions and deviations in traditional inventory operations and improve the accuracy and reliability of information.

During the sales process, since the retail shelves are also equipped with RFID readers, when the goods are put on the shelves, the shelves can automatically identify the newly added goods. If the customer takes the goods, the shelves will send a replenishment information to the retailer's automatic replenishment system.

From the customer's point of view, customers no longer have to wait in line for a long time to pay. They only need to swipe the card and push the selected goods out directly, because the reader installed at the door of the retail store can directly read the RFID tag of the goods to obtain the information of the goods and identify the goods purchased by the customer.

Since the product electronic code in the RFID tag is the only mark of the goods, retailers can use the product electronic code to track the logistics of the goods and perform automated management based on the automatically captured information.

Take WalMart as an example. WalMart has always been the main supporter of RFID technology. WalMart requires its top 100 suppliers to install RFID on all products shipped to major distribution factories before the end of next year. At the same time, all products shipped to various distribution points must also be equipped with RFID before January 1, 2006. In the future, our shopping at WalMart will be as follows:

Suppose we push a shopping cart and choose in front of rows of shelves in Walmart supermarket. When we walk to the food area, we choose a brand of beer and continue to move forward, but suddenly notice another brand of beer. When we compare them, we put the former beer back and throw the latter into the car. In this half minute, the host reads the information that the former beer leaves and returns through the RFID tag, and transmits it back to the headquarters of this brand of beer company.

When we walked out of the supermarket door with a full shopping cart of selected items, no one stopped us. This is because when we passed the cash register system at the door, the membership card on our shopping cart reported our identity, and the RFID reader instantly identified the quantity and price of all the goods, and the bank transfer system debited the corresponding amount from our account.

In the past, supermarkets used barcodes to speed up the charging process. After consumers paid at the checkout counter, the magnetic stripes on the goods became ineffective. But unlike magnetic stripes, RFID tags can continue to be recognized outside the line of sight. WalMant will track the whereabouts of the product, and we will get better after-sales service.

For WalMart, after using RFID product-level tags, if a certain product is in the store, the store staff can immediately track it through the tag. When a product is out of stock, the store staff can find out by scanning the RFID tag on the shelf with a scanner, and can also calculate the related products that replace the product. In addition, the use of RFID technology can enhance the store's security, environmental monitoring capabilities, traffic conditions monitoring capabilities, and customer behavior monitoring.

It is not difficult to see that the popularization of RFID technology in commercial supply chains is inevitable and will play an indispensable role in our lives.