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STRENGTHS OF RFID

Posted by admin 2009年4月16日

STRENGTHS OF RFID

1.          Radio Frequency Identification makes use of radio frequency waves to capture data in small, lightweight electronic read/write storage devices called tags. Data is accessible through handheld and fixed-mount readers in real time, using RF signals to transfer data to and from tags even in the absence of line-of-sight. With RFID technology, companies can get real-time information on inventory. That means retailers and suppliers can respond quickly to shifts in demand, avoid spoilage, and prevent over- and under-stocking.
 
2.          A typical RFID set-up comprises a RFID tag that contains data about an item; an antenna used to transmit the RF signals between the reader and the RFID tag and a RF transceiver that generates the RF signals; a reader that receives RF transmissions from the RFID tag and passes the data to a host system for processing.
 
3.          RFID-based systems provide efficiency and accuracy similar to those of printed bar code systems, and offer additional benefits such as:
 
a)            RFID supports read/write operation. RFID's real-time characteristic enables efficient updating of information contained within the tag as an item moves from one point to another. For example, a tag on a delivery truck can contain the truck's manifest, which can be updated easily as the driver adds and removes items.
 
b)            RFID is not limited to contact operation. RFID tags can be read through nonmetallic materials, and a reader does not have to touch a tag, making RFID ideal for cluttered, dirty, wet, and harsh environments. Unlike bar code scanners, RFID scanners can read tags through mud, dirt, paint, grease, wood, cement, plastic, water, and steam.
 
c)            RFID tags can be hidden. Because RFID is not limited to line-of-sight operation, you can embed tags under skin, inside clothes hems, and within the pages of a book, preserving the item's usability and aesthetics.
 
d)            RFID tags are very secure. RFID tags are virtually impossible to counterfeit, because an unalterable permanent serial code prevents tampering. This guards against an unauthorized user changing data corresponding to a particular item.
 
e)            RFID tags are read at a faster speed. The time it takes for an RFID reader to activate the tag and receive the associated information stored in the tag is approximately 40 percent faster than scanning traditional printed bar codes.
 
f)              Multiple RFID labels can be read at one time, speeding up the data collection process. A scanner can read each tag independently when mixed in a pile, distinguishing among multiple items based on each one's unique identification number.
 
4.        RFID can enhance firm-level competitiveness by:
 
a)            Lowering Costs – According to the US National Retail Security Survey, approximately US$5.8 billion worth of inventory was lost in 2001 due to administrative errors alone. RFID not only ensures accuracy of information, but also limits the amount of error-prone human interaction that is needed. With information that is updated in real-time, RFID can further reduce costs by allowing companies to decrease shrinkage.
 
b)            Increasing Revenue – With U.S. retailers losing approximately 3.8% of sales per year as a result of out-of-stock inventory,greater inventory control and increased product availability can have a major impact on increasing revenues. RFID tags allow companies to capture and track a variety of data on goods. This information aids in the development of accurate inventory forecasts.
 
c)            Decreasing Working Capital – Because of the speed and accuracy of RFID, orders can be filled in a shorter amount of time, allowing for quicker product availability. Reducing this order cycle time decreases the need for an abundance of safety stock.
 
d)            Reducing Fixed Capital – With RFID, companies can better manage fixed capital by tracking assets such as totes and pallets. This reduces the need for replacement due to lost items and cuts back on the amount of redundant equipment that are under utilised. Additionally, by increasing the speed at which a forklift can perform a certain task, the same amount of work can be completed with fewer vehicles, further reducing the costs of these fixed assets.
 
5.        For example, Wal-Mart alone is expected to achieve a pre-tax cost savings of US$8.35 billion (equivalent to 5% of its total revenue) once RFID is being implemented across all their operations. Breakdown of their cost savings are as follows:
 
a)            US$6.7 Billion: Eliminating the need to have people scan bar codes on pallets and cases in the supply chain and on items in the store reduces labor costs by 15 percent.
 
b)            US$600 Million: Even with its famously efficient supply chain, Wal-Mart suffers out-of-stocks. The company boosts its bottom line by using smart shelves to monitor on-shelf availability.
 
c)            US$575 Million: Knowing where products are at all times makes it harder for employees to steal goods from warehouses. Scanning products automatically reduces administrative error and vendor fraud.
 
d)            US$300 Million: Better tracking of the more than 1 billion pallets and cases that move through its distribution centers each year produces significant savings.
 
e)            US$180 Million: Improved visibility of what products are in the supply chain-in its own distribution centers and its suppliers' warehouses-lets Wal-Mart reduce its inventory and the annual cost of carrying that inventory.
 
 
References:
 
1.        Raghus Das, IDTechEx, 2002, RFID Explained
2.        Meredith Levinson, CIO (US), The RFID Imperative
3.        Accenture, 1 November 2002, Auto-ID on the Move: The Value of Auto-ID Technology in Freight Transportation
4.        Case Study: Wal-Mart's Race for RFID, Mark Roberti, eWeek, 15 September 2003
 

University of Florida, National Retail Security Survey, 2001
Grocery Manufacturer of America and Food Marketing Institute, Retail Out-of-Stocks: A World-Wide Examination of Extent, Causes and Consumer Responses, 2002

分类:条码知识
标签:条码   RFID  
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