RFID has always remained famous for its applications in supply-chain management systems. Any supply chain includes many different stakeholders, processes, and a few different areas of operation. RFID can be the key to address these open areas and build a tight, reliable, and productive environment for the application. The given article will go through the implementation of RFID on supply chain premises. It will also go through a handful of applications to understand how RFID can create an impact on the production processes.
Technical Architecture Throughout The Supply Chain
RFID systems are basically consisting of two major components, including tags and readers. However, these two components can be useful for various applications for different parts of the supply chain process. Any manufacture begins with component sourcing, where a vendor can install RFID tags initially to maintain inventory, stocks and track its shipment to the manufacturing & assembly house. Since then, the components may go through different facilities with RFID tracking and updated positioning for the user.
Once received, the production house may enlist them and add them to inventory to manage stocks, positioning, and invoicing. Similarly, adding a technology like GPS throughout the logistics can create additional value by providing both solutions together. This approach ensures that the customer is never in the dark and can trace all the packages in-house and on the road.
Supporting Elements For Supply Chain System Architecture
Furthermore, RFID system solutions are worthless without IoT connectivity and an end-user interface to interact or monitor it. RFID systems gain IoT connectivity with the help of a gateway that can route the data from the RFID receiver to the cloud using Wi-Fi or GSM connectivity. Furthermore, an end-user application on the web or mobile is the key to make the most out of any RFID solution. The user interface can be helpful to collect data over time and then make better decisions based on statistics. Even in some cases, there are many different layers with different user roles. Therefore, using the end application is a must for such complex systems that require different role management in every part of the process.
Advantages Of Supply Chain Management Systems
Having a well-defined technological supply chain carries the following advantages for the given system leveraging RFID technical architecture:
- Quick, accurate, and regular inventory management
- Managing incoming supplies from vendors to keep track of stock needs
- Reducing operations cost
- Increasing productivity and revenue
- Avoiding labor work and human errors
- Tracing an item in every part of the process to examine and improve the process
- Following regulations and standard compliance as per international standard
- Supply chains can also be fully secured against mixtures and counterfeit objects
It is distinct and clear that RFID has a handful of use cases and applications specifically for the supply chain management. Therefore, RFID can clearly contribute to various industry vertices, resulting in many advantages where they can participate. Along with the right infrastructure, connectivity, testing, and supporting software, RFID would be able to gain huge traction from the users.