Process Analysis Technique
Radio Frequency Identification (RFID) can be advantageous to organizations by offering those tools to better plan production and respond better to meet market demand. RFID allows organizations to perform automated inventory counts and speed shipping and receiving at the distribution level of the supply chain. At the customer level or retail level, RFID will lower stock outs, enable product tracking, reduce theft, and assist in point of sale (POS) information. This paper will concentrate how RFID technology and its tags assist in the transportation and distribution of goods between Hong Kong and Japan as well as between Shanghai, China to Los Angeles. Among the topics covered will be how the new process using RFID will look like, how the new process will reset customer expectations, what challenges the organization will face when implementing the new process, and what other five industries might benefit from RFID.
How will the new process utilizing RFID look (map the process)?
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How will the new process reset customer expectations?
The new RFID system will reset customer expectations. In conjunction with existing infrastructure network communication and a system called Electronic Product Code (EPC), which is a unique number for identifying an item, RFID will assist companies and regulators in sharing information. Information that used to take weeks or until an item was physically seen can now be accurately and instantaneously transmitted using RFID. Using RFID, data such as changes in product size, weight, name, price, classification, transportation requirements, and volumes are available throughout the supply chain reducing errors.
According to Attran (2009), “RFID has the real potential to enable accuracy, reliability, service enhancement, and cost reduction” (p. 46, para. 4). RFID keeps the promise of efficiency throughout the entire supply chain by reducing warehouse and distribution costs, reducing point-of-sale costs, increasing inventory savings, reducing theft, and minimizing out of stock situations that result in lost sales. As a result of improved and timely information, customers can adjust marketing, sales, promotions, or physical inventory storage space to compensate for the incoming products.
The use of RFID provides information to customers regarding the location of their products during shipment. Vouk, Jakovic, and Markovic (2009) state, “RFID gives virtually endless possibilities in tracking shipments through the entire supply chain. RFID tags can be inserted on containers, pallets, or individual items on the shelf in the store” (p. 1129, para. 10). When RFID is compared to bar coding, there is less labor required, improved reading rates, larger data capacity, the ability to write and add additional data to a tag, and RFID is better suited for harsher conditions than bar coding. As a result, RFID provides a more efficient, reliable, and cost-effective means to ship, track, and guarantee shipments of goods.
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- James Tallant (Author), 2010, Process Analysis Technique , Munich, GRIN Verlag, https://www.grin.com/document/167349