Reduced inventory with real-time visibility: RFID

by Monica Ali Safitri NIM 2301944286

The bullwhip effect, a variation in orders in the supply chain, may lead to surplus or waste in the supply chain if demand inactivity is present. To increase sales and reduce inventory investment and cycle time in retail, this element may need the integration of the supply chain to enable the cooperation of forecasting planning and restocking inventory. Even more importantly, it helps to cut down on waste in the production process, as well as improve customer satisfaction and competition amongst supply chain partners. Many supply chain cooperation procedures are predicted to be revolutionized by the introduction of Radio Frequency Identification (RFID) technology. It is possible for retailers to reach the highest degree of business success by using RFID in their supply chain cooperation. For contemporary merchants, RFID will provide operational efficiencies, more visibility, lower costs, and enhanced security, as well as improved customer service, better information accuracy, and higher sales. RFID adoption faces a number of significant obstacles, including concerns about privacy, a lack of standards, high costs, difficulty integrating data, resistance among employees to change, technical insufficiency, and the need of rethinking business operations.
On Jl. Setiabudisemarang, PT Raja Besi Semarang, an iron and steel production firm, is situated. The production planning process is divided into two halves, one for stock products and the other for order production. PT PLN and PT Telkom Indonesia’s associates place the bulk of the order for manufacture. A product is created to meet the customer’s demands, thus the quality of manufacturing relies on the number of orders. Starting with raw material acquisition to manufacture and distribution of completed goods, data collecting has been digitized utilizing databases from beginning to end. deliveries via a single security door utilizing either company-owned or rented vehicles. While stock manufacturing is considered a backup or a standby option. The corporation has a warehouse where this production is kept.
Data entry is still done manually, despite the use of ERP systems. During data input, there are typically delays, while inventory checks at the finished products warehouse are undertaken to ensure that the inventory on the system matches the inventory in the completed goods warehouse. Additionally, FIFO products cannot be implemented owing to a lack of monitoring systems or the need for people to monitor the final items. This led to inefficiency and ineffectiveness in ERP system implementation. The ERP warehouse’s data information flow is done manually. It is also still done manually by comparing existing databases, which makes it very difficult for the warehouse to keep up with production. To avoid human mistakes, an automated data reading is required. Product traffic control and Enterprise Resource Planning (ERP) software are projected to be correctly linked in the future, allowing for better decision-making, planning, and production control. Radio Frequency Identification (RFID) is a potential solution to this issue (RFID).

https://www.sciencedirect.com/science/article/pii/S0925527309004526

https://ieeexplore.ieee.org/abstract/document/1371441/