It is often suggested that RFID tags are a replacement for UPC or EAN barcodes; while it is true that they have a number of important advantages over the older barcode technology, it is not so clear that this technology shift will occur anytime soon. Many technology experts now believe that RFID may not ever completely replace barcodes, due in part to the higher cost and the advantage of multiple data sources on the same object. Retail barcodes have been around in their present form for over 40 years, many experts are suggesting a conversion to the new EPC, along with several other schemes because they provide more information and are available at a reasonable cost.
Storage data associated with tracking product flows is an ideal application for RFID because it can be read quickly and accurately while goods are moving through the supply chain. RFID data can be filtered, categorized and quickly associated with data stored in other systems in order to provide actionable information. RFID identifiers can be associated with product ID, batch, expiration date, QC test results and other important product specific data .
Many experts now believe that it is very likely that goods will be tracked by the pallet using RFID tags, and at package level with Universal Product Code (UPC) for product specific identification. Having a unique identity is a mandatory requirement for RFID tags, although there are a number of different numbering schemata. RFID tag data capacity is large enough that each individual tag will have a unique code, while current bar codes are limited to a single type code for a particular product. The uniqueness of RFID tags means that a product may be tracked as it moves from location to location, finally ending up in the consumer's hands. This will help to combat theft and other forms of product loss.
The tracing of products through the supply chain is a critical feature that is well supported by RFID tags containing a unique identifier and associated with a product identifier and the serial number of the product. This may help companies to cope with the cost quality recalls and speed the process by which defective product is controlled and returned. Some consumer advocacy groups have voiced concerns that this product/serial specific data could be used to profiling consumers after the sale.
Although it has also been proposed that RFID be used as POS store checkout system resulting in the physical replacement of the cashier with an automatic system which needs no barcode scanning. This scenario is not likely to become a reality in today's environment without a significant reduction in the cost of tags and changes in the POS process.An FDA-nominated task force concluded that there are commercially available technologies that can satisfy the pedigree requirements associated with tracing products through the supply chain. Amongst all technologies studied bar coding and RFID seemed to be the most promising and the task force felt that the pedigree requirement could be met by easily leveraging something that is readily available.
If your company is considering RFID applications Supply Chain Experts can help you design a program that satisfies the requirements of your customers while insuring the optimal data flows to accurately control your products through the supply chain.
Dr. Edward F. Knab
Productivity Constructs, Inc.
800 660 8718 office
949 413 7333 mobile
Productivity Constructs, Inc
Edward F. Knab
BlogSupply Chain Experts
Dr. Knab is an academic practitioner and seasoned Global Supply Chain expert whose company, Productivity Constructs, is focused on driving cost and inefficiency out of the Global Supply Chain. Dr. Knab can be contacted for speaking engagements, executive coaching, or consultation at efk@productivityconstructs.com, ed@ewardknab.com or http://www.edwardknab.com/.
Tags: inventory, RFID, UPC, EPC, POS, scan, information, inventory, lean, supply chain
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