June 7, 2006
Advantages of RFID in Business Applications
RFID Special
Advantages of RFID in Business Applications
The application of RFID and EPC technologies will provide enterprises with an unprecedented real-time view on the location and integrity of their assets and inventories globally thereby enabling significant gains in their operational efficiencies. The advantages of the efficiencies can be witnessed in the entire value chain from improved labor efficiencies, better inventory management across the supply chain, improved product integrity and reduced shrinkage amongst numerous other potential benefits.
Some of the advantages:
Shipping & Receiving
Identification of EPC tagged items/pallet happens automatically as the pallet moves through a receiving door equipped with an RFID reader, the exact amount and type of product is immediately known to all parties. Any discrepancies between the amount ordered and received can be automatically identified and noted for both the shipper and receiver of the goods.
Efficiency in Distribution
As the palettes of items arrive at the shipping service's distribution center, there's no need to open packages and examine their contents. EPC Network provides a description of the cargo, and the item is quickly routed to the appropriate truck.
Efficiency in Inventory
As soon as the item arrives, EPC compliant application having connectivity with EPCglobal Network automatically updates the inventory to include every item that arrived. It also check the reorder level and raise alert to avoid “Out of Stock”.
Product Theft
Since product arrival and departure is captured at each point, the EPC Network enables comprehensive distribution visibility that creates a record of the chain of custody for each product. And while not actually preventing the theft of an item, or even the legitimate loss of an item, the ability to pinpoint the custodian of the product when it was lost allows the manufacturer or retailer to take preventative measures for the future.
Counterfeiting
The EPC Network can help address these challenges by enabling genuine product shipments to be automatically scanned and authenticated as they traverse the supply chain from manufacturer to retailer. This electronic profile can be used to determine the authenticity of a shipment. The profile for a shipment will be stored and accessible to all parties, preventing counterfeits from being introduced into the supply chain.
RFID vs. Barcodes
Unlike barcodes, which require an established line of sight and correct orientation with a scanner, RFID tags transmit identification data through almost any kind of packaging, so the contents of a case or pallet can be read and confirmed almost instantaneously without requiring individual product scans. By “tracking and tracing” RFID-generated data across the supply network and putting it in the context of detailed business process information (such as manufacturing and shipping history), RFID can provide complete provide complete, real-time visibility into product lifecycle and supports strategic demand-driven supply network initiatives.
According to www.barcodebook.com, while RFID will probably never completely replace barcodes, it has distinct advantages over the barcode. For example,
● Human intervention is required to scan a barcode, whereas in most applications an RFID tag can be detected "hands off."
● Barcodes must be visible on the outside of product packaging. RFID tags can be placed inside the packaging or even in the product itself.
● You must have "line of sight" to read a barcode. RFID tagged items can be read even if they are behind other items.
● The readability of barcodes can be impaired by dirt, moisture, abrasion, or packaging contours. RFID tags are not affected by those conditions.
● RFID tags have a longer read range than barcodes.
● RFID tags have read/write memory capability; barcodes do not.
● More data can be stored in an RFID tag than can be stored on a barcode
Puneet Mehrotra is a columnist for HindustanTimes.com and a web strategist at www.cyberzest.com You can email him on puneet@cyberzest.com


















