RFID Technology Enabler of Supply Chain Operations

Question: Describe about the RFID Technology for Enabler of Supply Chain Operations. Answer: Introduction The modern businesses are increasingly embracing technology as a viable means to streamline complex tasks and thus ensure a seamless and hassle free service to their respective consumers. One of the enabling technologies in this regard which is widely being used is the RFID or Radio Frequency Identification technology (Want, 2006). The aim of the given report is to highlight the various facets related to this technology. This includes the working mechanism along with potential issues that users and businesses resolve with this technology. Further, the various limitations of this technology are also briefly highlighted. Besides, the experience of one organisation with regards to implementation of RFID technology is also briefly highlighted. Additionally at the end, the future prospects for the RFID are highlighted. Working of RFID Technology RFID technologies are constituents of a wider class of technologies named as AIDC (Automatic Identification and Data Capture). The objective of these technologies is to facilitate direct entry of data bout objects while minimising human intervention. To accomplish this task, the RFID systems use radio waves. A typical RFID system has three major components namely a RFID tag along with a reader for RFID and also an antenna. Usually the RFID tags comprise of an integrated circuit along with an antenna which in turn transmits the data to the interrogator or RFID reader (ABR, 2014). The RFID reader tends to generate a small radio signal that has a limited range which is typically restricted to few feet only. This signal tends to activate the tag as signal reached the integrated circuit through the antenna. The antenna plays a pivotal role as it readily changes radio frequency into power that can be used and can also be used for sending and receiving messages (Kaur et. al., 2015). The useful information stored in the tag is transmitted through the use of antenna. The reader collects information from the tag using the radio waves and then this travels to the host computer system using an interface for communication. This data received tends to be stored for future use and analysis in the database (McDowell, 2009). The RFID tags are available in a host of shape and size combination and may be either active or passive. The more widely used form are the passive tags as they are comparatively smaller in size and cheaper in cost compared to the active tags. However, the drawback of the passive tag is that it needs external power from the RFID reader and only then can transmission of data takes place. However, in case of active tags, power supply is available on board itself and thus transmission is possible at all times (Want, 2006). Problem that RFID solves The RFID system has been designed to ensure that particular items are identified without necessarily being in line in sight. This is particularly at display in supermarkets where traditionally bar codes were used. The bar code scanning essentially involves laser from the bar code reader which reads the label on the object and thus displays the relevant information. However, it is imperative that the bar code should be in line of light and only then can the laser access the information. This is unlike the case in RFID where line of light in not required as the technology is based on signal transmission and receiving through waves which is more dispersed and hence ensures better accuracy even when tags may not be in line of sight (Ting, Tsang and Tse, 2013). Advantages of Barcode (Want, 2006) They are comparatively very cheap and comparable to the cost of ink. It reduces the human error with regards to information reading. They are easy to user since they are light and quite small. Does not have issues related to privacy with their usage. Disadvantages of Barcode (Kaur et. al., 2011) A direct line of sight is required for this technology. The distance between the barcode and reader should be at most 15 feet. It is a labour intensive procedure as each item requires scanning. Barcodes exhibit limited information in comparison with RFID. Barcodes are more liable to be damaged. Advantages of RFID (Kaur et. al., 2011) RFID tags have more distance range as compared to barcodes. The tags do not need to be in line of sight. The rate of RFID reading is comparatively more. The security provided by RFID is comparatively greater. They are less likely to physical damage as they are rugged. RFID tags have much higher data carrying capabilities and are essentially read/write devices. Disadvantages of RFID (Nayak et. al., 2007) The RFID tags are comparatively more expensive than barcodes. The readability of RFID readers is highly constrained when reading through certain mediums such metals and liquids. Problems such as tag collision and reader collision can occur which limits the accuracy of the technology. On the basis of the above discussion, it is apparent that RFID is more robust as compared to barcodes and presents as an effective measures to eliminate human intervention. Despite the higher costs, the use of RFID technology is on the rise due to the potential advantages listed above. Limitations of RFID Technology Despite the various advantages, there are various limitations with regards to usage of RFID technology. These limitations are listed below. Currently there no uniform standards with regards to usage of RFID and as a result, a high degree of freedom is allowed to the users with regards to the communication protocols deployed and also the format of storage of information in the tag along with underlying amount. In such an environment promotion of closed loop solution may lead to incompatibility and conflict (Nayak et. al., 2007). The high cost also serves as a limitation as the passive tags cost between 5-25 cents per tag whereas an active tag costs about $ 1 per tag. These are significant costs and serves as a constraint in migrating to RFID (Hellstrom, 2009). There is the problem of collision (tag and reader) as there are multiple signals which are simultaneously processed and in the process result is data loss. Even though anti-collision algorithms have surfaced but they are expensive and still in nascent stages (Want, 2006). There are concerns on part of the users that considering the technology obsolescence, the huge upfront investment seems unjustified (Kaur et. al., 2015). There are concerns with regards to privacy and security in RFID usage. These tags can be read without any scanning and can also be read even after the tag is removed from the system. Further, these systems are also susceptible to virus attacks with the intent of retrieving data or to erase the same (Nayak et. al., 2007). The RFID tag manufacturing is not free from errors it is estimated that the defection rate with regards to these is as high as 20-30%. Clearly, these need to be brought down to enhance accuracy and reliability of these systems (Kaur et. al., 2015). Successful implementation of RFID Technology RFID technology has been successfully deployed in a plethora of organisations in various sectors. One of the organisations that have used this technology in successfully inventory management is the e-retailer giant Amazon. For this purpose, the company has established a RFID laboratory at the Auburn University which would enable the company to implement futuristic solution based on RFID technology. The RFID based tracking system has allowed the company to enhance the tracking capability along with enhancing the receipt of goods speed. The company remains bullish on the usage of this technology for enhancing competitive advantage (Roberti, 2015). Another organisation that has successfully implemented the RFID technology to reap rich gains is BJC Healthcare. The RFID usage provides enhanced visibility to the company with regards to inventory and is integral to inventory management. Due to RFID based inventory system, hospital has been able to reduce its stock at hand by about 23% (Smiley, 2015). The Way Forward RFID has wide usage for the retail industry and in being used by the various leading retailers primarily for management of inventory and also in managing of supply chain. This is providing these retailers with significant savings in terms of cost and time over the long run. As the various issues related with RFID technology are resolved, it is expected that in the retail sector RFID would be deployed in the mainstream business particularly for the use of consumers (Mohammad, 2015). This technology also is extensively used in hospitals and healthcare. Besides the current usage for patient tagging and inventory, it is expected that in the future such tags would be placed inside human skin and would easily display the relevant medical history and thus ensure seamless healthcare services. Also, RFID technology would find increasing use in the banking industry which is expected to use this innovative technology for providing personalised services to clients (Brown and Russell, 2007). Henc e, it can be concluded that as the RFID technology becomes standardised and is able to address the various limitations, its scope of usage in the various industries is bound to increase. References ABR (2014), What is RFID How Does RFID Work, Retrieved 30th July 2016 https://www.abr.com/what-is-rfid-how-does-rfid-work/ Attaran, M. (2007), RFID: An Enabler of Supply Chain Operations. Supply Chain Management: An International Journal. 12(4), 249à ¢Ã¢â€š ¬Ã‚ 257 Brown, I. and Russell, J. (2007), Radio frequency identification technology: An exploratory study on adoption in the South African retail sector. International Journal of Information Management, 27(4), 250à ¢Ã¢â€š ¬Ã‚ 265 Hellstrom, D. (2009), The Cost and Process of Implementing RFID Technology, International Journal of Logistics Research and Applications, 12(1), 1à ¢Ã¢â€š ¬Ã‚ 12 Kaur, M., Sandhu, M., Mohan, N. and Sandhu, P.S. 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(2015), 4 Companies Using RFID for Supply Chain Management, Retrieved 30th July 2016 https://blog.atlasrfidstore.com/4-companies-using-rfid-for-supply-chain-management Ting, S.L., Tsang, H.C. and Tse, Y.K. (2013), A Framework for the Implementation of RFID Systems, International Journal of Engineering Business Management, 5(9) , 1-12 Want, R. (2006), An Introduction to RFID Technology, IEEE Pervasive Computing, 5(1), 25-33