Implementation of Rfid in Scm

1. Introduction

Almost 200 years after Charles Darwin’s death his theory of the „Survival of the Fittest“, that creatures adapt to their environment, is still omnipresent.

Putting this theory to the business world, one can see that the companies are also under a natural selection. Only the best adapted companies can take on the challenge of our more and more globalized world in the long run.

In this process, it is clear that some companies can handle the selection better than others. In a world where market dynamics are rising and where retailer’s influence is stronger than the influence of suppliers; suppliers need to adapt to the retailers. Effectiveness and efficiency are the keys to success.

A study of the Aberdeen Group has shown that 69 percent of companies are introducing Radio Frequency Identification (RFID) after they are pressured by their customers. Since 2005 the top-suppliers of Wal-Mart need to attach RFID tags on their pallets.

Still, many retailers that are in the implementation phase and which have voluntarily participating in the project have an advantage against other companies that are not voluntarily participating in the project. But for less innovative manufacturers, the pressure after this quiet period to launch the new technology will be higher. It is therefore essential to adapt to the circumstances in order to help and shape thus lucrative contracts can continue.

1.1. Introduction to the Problem

The introduction of RFID technology has affected the entire supply chain. RFID tags can provide more information than the bar code.

Considering the lengthy process at the full introduction of bar code, one can roughly imagine what effort will be necessary to introduce RFID worldwide.

In the end, when RFID labels can be produced for the same price as bar codes, there will be a breakthrough. In this regard, there are already many projects in which an attempt is made to develop labels for a price of € 0.01.

2. Components of a RFID System...