News: RFID gains acceptance
To paraphrase a quote from Frank Herbert’s Dune, “The Data must flow.” And in the same sense that spice was the life blood of Arakis, the flow of data is the life blood of any e-commerce integration. In the past I have talked about how RFID technology can be used to enhance the flow of data. In an e-commerce supply chain it can give more up to date information as to where products are located, and thus what state they are in.
Manufacturer to Customer
Evan Schuman writing for CBS News relates a Christmas shopping scenario where a store could use RFID to not only tell if merchandise is in the store or in the stock room. But can be used to tell if the item is lost on the wrong shelf, or in line waiting for checkout. In the same way, this can give inventory control systems information on order fulfilment. When an order comes in, is the item in stock? It the answer is yes we will want to trigger a response to the orderer indication that we can fill their order. But what if the inventory database has an item listed, that we can’t find. Using RFID we are able to track where it went in the warehouse, or if it is on a cart, getting placed on another truck or has been pulled by mistake.
Having up to data data on where products are located is not just useful to the sales clerk at Best Buy, but is useful all the way up the supply chain to the manufacturer. As RFID gains more acceptance and people find real ways to save money and time by implementing it, into their supply chain solutions.
And speaking of RFID acceptance, in a recent article in the RFID Journal they reported that the Air Transport Association is adding an enhancement to their Spec 2000 to include RFID data standards. This standard from the ATA is not a mandate or an all encompassing specification, but it is a step in the right directions. As more standards groups begin to include the use of RFID technology in their specifications, the easier it will be to implement cross dock utility, and more timely data will be available for BPM processes and audits.
Benefits of Data
In the end, the supply chain lives on data. Data on what products are available, where those products are, and how long it will take to get them to the customer or point of purchase. All of the data points impact the efficiency of the supply chain, and the efficiency impacts the cost. The more and better data we have the better we can make the supply chain.
RFID is only one way that more data will be collected within a supply chain cycle. It has the promise to fill in the gaps of missed data opportunities. What are other ways to pull more data out of the cycle of the supply chain?
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