SUPPLY CHAIN MANAGEMENT AND RFID IN RETAIL INDUSTRY

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Radio Frequency Identification for supply chain management in retail industry..

Presented by..., S. SYED NIZAMUDEEN

What is RFID?

Radio Frequency Identification

RFID is the use of small devices that can be electronically identified at a distance, through many obstruction, using radio waves or adjoining frequencies.

AdvantagesWorks under adverse conditionsReading is done without any human interventionRead writer can be used to record new information on the tagThe use of radio frequency tags to identify real objects.

Real Tags

Frequency RangesLow 100-500 kHzshort range, low data rate, cost, & powerIntermediate 10-16 MHzmedium range and data rateHigh 850-950 MHz & 2.4-5.8GHzlarge range, high cost, high data rateneeds line of sight

IdentificationAssign IDs to objectsLink the ID to additional information about the objectLink the ID to complementary infoFind similar objects

Identification ExamplesBar CodesLicense PlatesSocial Security NumbersStudent IDSerial NumbersCar KeysDatabase Keys

How Does RFID Work?3 ComponentsTransceiver Tag ReaderTransponder RFID tagAntenna

TagInsert

Antenna

Reader

Firmware

CustomersMIS

HostApplicationSoftwareAPI

TCP/IPPower

~

Asset

Asset/TagRFID System Components(block diagram)

Supply chain management

It is a network of facilities and distribution options that performs the functions of procurement of materials, transformations of these materials into intermediate and finished products, and the distribution of these products to the customers.

Why supply chain management need RFID ?Measurable impact to labor costs Real reduction in errors via automation reduction in mis-shipments, lost inventory, and errors in redundant data readsReal gains in productivity by better managing the use of skilled resources through automationIndustry recognized qualitative impacts which returns improved customer service, lessened warrantee handling,Driving regulatory impacts through compliance activities to meet governmental regulationsAutomated POS means skilled resources are in front of your customers and not behind a cash register

After decades of technology refinement these radio tags have now become very small and inexpensive

A great deal of innovation has brought us to the point where the silicon core of an radio tag is now 0.4mm

The antenna can be printed onto a products packaging at time of manufacture

Currently radio tags can be purchased for less that 0.25 in quantity.

=> RFID is small enough, fast enough, and cheap enough to do real work with todayWhat makes RFID relevant now?

Retail supply chain

RFID

For manufacturers;

RFID enables detailed, automated monitoring of parts as they move through a facility. RFID quickly identifies the origin of defective components or products, even after they have been sold.

For distributors;

RFID manages inventories and fleets so effectively those manual tasks can be eliminated, processes can be dramatically accelerated, and shipping errors can be reduced. BENIFITS OF USING RFID IN RETAIL SUPPLY CHAIN

For retailers;

RFID ensures appropriate stocking levels, tracks the origin and history of products, prevents theft or misplacement of goods, and speeds up checkout lines. Where traditional bar coding requires one-by-one scanning of a visible bar-code label,

RFID readers can simultaneously scan hundreds of tagged items, regardless of whether the tag is visible. And whereas traditional bar coding can tell you only what type of product is being scanned,

RFID can uniquely identify individual items.

RFIDs AdvantagesPassivewirelessStore data on a tagCan be hiddenWork in harsh environmentsLow cost?

RFIDs DisadvantagesLack of standards!Short rangeCost

ConclusionRFID is an emerging technology that is likely to replace the conventional barcode technology, due to its many advantages on the former. Even if some controversies exist against use of RFID tags as they invoke privacy concerns as they can be monitored regularly from far apart, users are getting to co-op with it. Hence more advancement is yet to be done in this field to get better results with high efficiency and low cost.

ReferencesRFID Chefhttp://www.inf.ethz.ch/vs/res/proj/rfidchef/AIM Global Networkhttp://www.aimglobal.org/technologies/rfid/what_is_rfid.htmTexas Instruments RFID Solutionshttp://www.ti.com/tiris/default.htmInteraction Design InstituteRFID Whitepaperhttp://people.interaction-ivrea.it/natasha/rf/RFID_research.pdfAuto-ID Centerhttp://www.autoidcenter.org/

Thank YouContact

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