RFID is Used in Supply Chain Management

Adina Ramadhana  Putri – 2301903052

Definition and Concept

RFID is a technology and physical infrastructure used to identify and label objects. This technology is a specific identifier that is sent from one device to another using radio waves with a predefined code. RFID includes microprocessors that have informational memory space. This RFID feature can be used as an important and functional tool for a variety of ways and purposes. RFID has many benefits for warehouse inventory management because it can ensure a product is shipped according to the order ordered, prevent out of stock at the sales level, update management with the production phase, reduce documents, increase productivity levels, improve the product development process in the supply chain, reduce labor costs, and make inventory more accurate.  In addition to having many benefits of RFID also has weaknesses so this technology must be handled by the company. RFID tags can include large-scale data to raise privacy concerns. In addition to privacy concerns, data stored on naming tags does not follow a standard format that can be understood by a company because it has a different supply chain but can lead to the falsification of data on the company’s database. Supply Chain Management (SCM) has an important role in the company and attracted attention to research in recent years.  What exactly is Supply Chain Management (SCM)? The supply chain is a process in a business field where one part of the organization will correlate and communicate with each other in order to create a business process. For example; The expedition company receives an order from a consumer from abroad to be able to export goods from within the country so that the consumer can export goods then the consumer needs an expedition company where later the consumer will make contact with the expedition company. The expedition organization will notify the sales section that they are getting the order, then the sales section will inform the distribution financing and human resources division so that each division can provide a good calculation of the number of shipments, operational and distribution costs, and how many hours of work must be spent (depending on the product to be exported). (Oghazi, Fakhrai Rad, Karlsson, & and Haftor, 2018)

References

Oghazi, P., Fakhrai Rad, F., Karlsson, S., & and Haftor, D. (2018). RFID and ERP systems in supply chain management. European Journal of Management and Business Economics,11.