Prolog Systems Blog The key influence of RFID on supply chain management

One technology that has long played a part in e-fulfilment is RFID, or Radio Frequency Identification, which uses radio waves for the identification of items. Industry has increasingly adopted it as an alternative to the barcode, and it is often grouped with such other technologies as smart cards and magnetic strips that are helpful in the automated collection of data for augmenting ERP (enterprise resource planning) system activities.RFID has progressively gained traction within retail distribution since the development of the first device to use this technology in the early 1970s. Where there are any persistent concerns about package or pallet scanning, these have been allayed - and will continue to be do - by current and future technological developments and innovations relating to packaging solutions. Research has indicated that the RFID market will be worth $30.2 billion by 2024.Various problems have been solved by firms' adoption of RFID. Wal-Mart, for instance, has long experimented with the technology for tracking stock-outs and managing stock, while for Unilever, it has proved useful for the movement, handling and tracking of warehouse items. Although the investment in technology and implementation that is necessary in order to take advantage of RFID may be daunting for some organisations, this could be minimised through collaboration between supply chains, the resulting amplified supply chain visibility also allowing for more intense data capture.When retailers work together and share with their suppliers the costs of RFID adoption, savings could be made to all parties' benefit. Customer demand could be more accurately anticipated, for example, if products are tracked more often on a unique level and information shared across the supply chain. Minimising waste is another potential advantage of the RFID's application during the supply chain's production stage, given the resultant heightened visibility that makes it easier for retailers to maintain the right stock levels.RFID has also been noted for the boost that it can bring to the warehouse, with regard to both productivity and consumer demand forecasts. Indeed, customer demand - along with an uncertain economy - has only made greater collaboration across the supply chain an even more pressing retailer priority. Potentially playing a central part in such collaboration in the coming years is RFID, its ability to make the sharing of information easier also making it difficult to ignore in 21st century e-fulfilment.