The RFID (radio-frequency identification) diagnostic for supply chain management in the CI&R environment is comprised of two tracks. The business track assesses current supply chain performance to investigate and quantify areas for improvement and value creation including accuracy, cycle time compression and cost avoidance. This track also quantifies potential implementation cost and the roadmap to achieve the value creation. The physics track assesses the on-site physical environment and the product’s physical characteristics to optimize implementation.
The total RFID implementation enables retailers and their suppliers to track and share inventory data at the case and pallet level across the supply chain. The future managed services solution will allow the consolidation of multiple data sources (e.g., warehouse management, procurement, and supply chain systems) into a single view to improve accuracy and better support supply chain collaboration. This system is enabled by placing RFID tag readers in various locations of the supply chain, which then capture the radio signals from RFID chips (placed in each case/pallet) and report what the item is and where it is at specific points in time.
- Minimize stock outs and inventory write-offs by improving demand forecast accuracy (enabled by ability to “see” what products customers have bought as well as where and when).
- Increase distribution center productivity and automate inventory data capture and verification to streamline inventory management at the case and pallet level.
- Minimize inventory losses by reducing shrinkage with proper monitoring and management.
- Create collaborative data sharing environments-enterprise-wide and with trading partners to analyze trends and enhance supply chain event management.
- Reduce returns and warranty costs by leveraging advanced tag capabilities with extended attribute electronic product codes (ePCs) to verify where and when product was purchased.