Revolutionize the Supply Chain Management with Radio Frequency Identification


Radio Frequency Identification (RFID) has emerged as one of the most revolutionary tools in supply chain and logistics. The technology is capable of helping organizations cut down on their expenses and hence become more competitive in the market. RFID uses radio frequency electromagnetic fields for data transfer. According to Sindi and Roe, it can be used in a number of ways to monitor the activities of a company in real time. The technology is highly valued due to its quality and adaptability in Supply Chain Management (SCM). RFID technology tracks assets such as the individual boxes, Individual items and even a bigger unit of measure in a supply chain operation. This paper focuses on the value of RFID in warehouses and ways through which it can be used together with blockchain technology to improve supply chain management and logistics. Please refer to the blockchain article, that outlines the emerging benefits of implementing blockchain.

Companies operating in the supply chain and logistics sector have realized the value of RFID in running their internal operations and improving business operations. Therefore, they have been able to harness the strengths of this technology to improve customer satisfaction. Studies showed that by the end of 2014, the RFID market was expected to exceed a value of $8.25 billion, which is nearly 14% compound annual growth rate. Today, companies have become heavily reliant on RFID technology in running their supply and logistics operations. According to Sindi and Roe, the ability of a company to figure out the consumer’s buying habits creates quality service, order accuracy, shrinkage rates, and stock outs. RFID technology has also helped in improving collaboration in various workplaces, hence creating order in the workflow.

RFID technology is very useful in warehouses. This is because it has the power to decrease human error and keep tabs on various activities of the warehouse operations thus contributing the supply management toolbox. The technology also facilitates the organization of inventories, thereby revolutionizing the previous paper and pen system tracking the management. When the shipment arrives, the boxes or pallets are fitted with an RFID tag or chip. The RFID tag or chip contains internally stored data which is mainly the internal storage information gathered as the boxes move through different processes in the warehouse. The data can also be modified through the process as it is transmitted to a central database for further analysis by the management. Most importantly, RFID has revolutionized the previous barcodes system in warehouse management.

With Regards,
Editor-Keith H
Journal of Information Technology & Software Engineering
ISSN: 2165- 7866
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