Radio Frequency Identification (RFID) promises to revolutionise stock management, but few applications exist so far. Now, European researchers are perfecting a platform to unlock the potential of RFID.
Radio Frequency Identification (RFID) promises to revolutionise retailing through advanced stock management, sophisticated promotions and supply chain optimisation. But cost-effective solutions have proved elusive because serious technical and business hurdles exist. Few efforts have addressed the problems in a consistent way.
The EU-funded SMART project is putting the finishing touches to a complete RFID application platform that addresses the technical problems, and presents options for an integrated solution to the business issues.
In some ways, RFID is like an electronic barcode. It can be read at a distance using an RFID reader, which means that people do not need to scan it manually. As goods enter a warehouse they can be automatically logged into the inventory.
Retailing revolution
RFID reduces the risk of human error, offers instant stock levels and can be tied to back-end systems, initiating orders automatically when stock starts to run low. It is a very simple principle, but the potential applications could revolutionise retailing.
For example, if a shelf needs refilling, the system can alert management automatically. If a product is reaching its sell-by date, RFID could notify retailers to discount the product.
“It means they have a better chance of selling stock, rather than dumping it, so the store runs more efficiently and more profitably,” explains Katerina Pramatari, scientific coordinator of the SMART project.
Even more advanced applications can be put in place. If one product is selling well at store A, but selling badly at store B, RFID-powered inventory systems could initiate the transfer of the product from one store to another.
Sophisticated applications, and serious challenges
These are just the initial plans, and more sophisticated applications could emerge over time. For example, a reader could scan a customer’s entire basket, and then present the total, vastly increasing speed and cutting costs at the checkout.
The promise of RFID is enough to make retailers drool, but serious obstacles exist. For a start, while RFID tags are relatively cheap – they can cost as little as 10 cents – putting them on every product quickly becomes very expensive. Currently, RFID tags in retailing are mainly used on pallets. There is also a question over who bears the cost, the retailer or the supplier.
The research faced a lot of technical challenges, according to Pramatari. “Getting the right RFID tag to ensure reliability and readability was an important decision. In the end, we chose Generation 2 tags because they are cheaper and can be read more reliably from a greater distance,” she explains.
Given that these chips will be attached to every packet, cost and reliability are important factors, especially for smaller businesses. The SMART team also had to adapt the technology for use with meat products and in cold storage.
The RFID installation, itself, took significant research time. “We had to ensure that we got the greatest range from the RFID readers for all the applications we wanted to test, using the fewest possible number of readers. Once we started to install the RFID tracking onsite we discovered we had to adjust our layouts to the specific conditions in each store,” explains Pramatari.
“Developing back-office functions was another technical challenge, as was developing web services so that the retailer could automatically communicate stock levels, for example, to the supplier. That, of course, required discovery services, which would ‘discover’ the appropriate retailer for a given piece of stock.”
More Info
14th & 15th October 2008, Hilton London Metropole
Implement demand-driven supply strategies to improve the efficiency of your supply chain and provide an unbeatable service to your customers
DDSC 08 will take place in London this October and provides the strategies you need to implement an effective pull-supply chain. This event has been produced by the Extended Supply Chain team following research undertaken with conference delegates and experts in the supply chain arena.
Business advantage has recently been gained through the use of Total Quality Management, technological advances & Lean Manufacturing methods - what's next? Industry has shifted from the factory-centric world, where the manufactures have the power to a customer-centric world where manufacturers must align themselves and their activities with the conditions of the global marketplace. Is your supply chain ready for this?
In today's competitive environment, product features and price have to obey the requirements of the market and product quality is no longer the major differentiator. Companies must now compete on the performance and quality of their delivery service, and demand driven supply chains are increasingly being utilised to go beyond customer requirements in efficiency and accuracy of supply.
If you are involved in the supply of a product where the customer's requirements matter, whether you are delivering a physical, infrastructural or electronic product, then you will benefit from attending the DDSC 08.
Event experts include:
Chris Dyson, Head of Supply Chain, Nokia Siemens will share his experiences of connecting customers to the back end to maximise supply chain excellence
Ensuring top down commitment from the boardroom to demand creation and supply capability team-working for Aidan Murphy, Managing Director, Supply Chain Bulmers Ireland
AMR Research will explain the role that globalisation, multi-channel distribution and increased competition are playing in driving forward demand driven supply chains
To find out more or reserve your place visit our website - www.ddsc2008.com - call +44 (0) 20 7970 4770 or email ddsc@centaur.co.uk Preferential rates for this event end on the 31st July 08, so get in touch soon.
Source by mhwmagazine.co.uk
Business Intelligence Solution for Retail Supply Chain Driven by Electronic Data Interchange (EDI) Information
0 comments Posted by Mark Dev at 6:11 PMDigital Movers and Information Solutions (ISI) develop Insight*Point-of-Sale, a completely hosted collaboration solution for retailers and suppliers.
Mashpee, MA (PRWEB) July 15, 2008 -- Digital Movers (www.dmovers.com), a premier provider of outsourced electronic commerce services, and Information Solutions (www.isnetusa.com) a software solution provider to importers of apparel, handbags, and other soft-goods, announced today the joint release of Insight*Point-of-Sale, a web-based business intelligence solution that promotes collaboration between retailers and their supply chain partners.
Using a combination of sophisticated data warehouse design concepts and presentation tools in a completely hosted environment, Insight*Point-of-Sale analyzes POS data provided via EDI transactions and provides retailers and their suppliers with current and historical visibility into the movement of products through the supply chain. Users can query, drill-down and analyze voluminous data in real-time to uncover sales trends, stock-outs, overstocks, missed selling opportunities and a host of relevant data that previously had been difficult or impossible to interrogate intelligently.
"Our customers are soft-goods importers and, as such, have to deal with numerous UPCs, colors, styles and sizes. The volume of POS data they were receiving presented significant challenges when it came to collaboration and business intelligence," claimed Jeffrey Clayton, president of Information Solutions. "Our customers have found that thanks to our unique database design they are able to quickly and effectively manage their POS data and, because it is a hosted solution, they require no additional software or hardware. Insight*Point-of-Sale accommodates analysis for both the executive dashboard level with pre-defined web reports and pull-down menus as well as the intense query capability required by analysts."
A web-based demonstration of Insight*Point-of-Sale can be arranged by visiting Digital Movers' web site at http://www.dmovers.com/informationrequest.aspx.
About Digital Movers:
Digital Movers is the premier provider of Electronic Data Interchange (EDI) outsourcing services to companies that need to communicate commerce transaction data electronically with their suppliers, customers, transportation and financial partners. For over twenty-five years, Digital Movers has provided expert EDI, XML and Communications processing for companies of all sizes in the retail, healthcare, manufacturing, grocery and transportation verticals.
For additional information, please visit www.dmovers.com or contact Digital Movers at sales@dmovers.com or 888-896-7703.
About Information Solutions:
Since 1982, Information Solutions has been providing software solutions to importers of apparel, handbags, and other soft-goods, enabling them to maximize productivity, optimize efficiency, and increase profitability.
ISI's flagship offering is Envision, a complete Supply Chain Management software solution designed in concert with leaders in the apparel and accessories industry. Envision is a completely integrated application that addresses a company's processing requirements including product inception and sourcing, customer fulfillment, distribution management and financial and executive analysis.
For additional information, please visit www.isnetusa.com or contact Information Solutions at sales@isnetusa.com or 732-346-2500.
Source by PRWEB
Delivery Reliability and Security Worry Supply Chain Executives
0 comments Posted by Mark Dev at 11:05 AMThe majority of the respondents to PRTM Management Consultants' Global Supply Chain Trends 2008-2010 study reported experiencing issues with product safety and quality. More than one-fifth said these issues are frequent and serious.
Concern is also high over product quality and safety, as well as delivery reliability and security, when expanding the supply chain globally.
The study reveals that the product recall is more extensive than many realize, with the most frequent issues reported by companies in the automotive and industrial sectors.
"Companies are acutely aware of the risks posed by globalization and are taking this challenge very seriously," said Shoshanah Cohen, Director, PRTM's Global Supply Chain Innovation practice. Although globalization is accelerating, the study found that a company's supply chain can impede that acceleration if it is not sufficiently flexible or if the company lacks the internal competency to manage supply chain partners.
Sixty percent of survey participants indicated that their supply chains lacked the required flexibility to rapidly respond to changing customer demands and interruptions in supply. In addition, more than half said they lack internal competencies to adequately manage their external partners.
Managing supply chain flexibility to ensure efficient product flow and on-time delivery remains a major challenge, the study shows. By 2010, the need for greater supply chain flexibility will overtake product quality and customer service as the major driver for improving supply chain strategy.
To improve supply chain flexibility across continents, almost 90% of those surveyed plan to increase their focus on delivery performance. Four out of five companies plan to better integrate key suppliers, including tighter enforcement of service level agreements with their channel partners. And 65% plan to maintain higher buffer stocks along key supply chain functions.
Source by industryweek.com
MHF Supply Chain Solutions (MHF-SCS) announced recently that it has launched Carload Solutions, a new business unit offering door-to-door rail service that bundles rail, transloading and trucking into an integrated service product under a single invoice.
MHF-SCS is a rail-centric, asset-based, transportation logistics provider that offers seamless solutions for shippers whose needs include access to multi-modal transportation and packaging options.
"With the rising cost of fuel and a global focus on the environment, shippers are starting to rethink the way they currently transport their product," said Ryan Harrington, Director of Sales and Marketing for MHF-SCS. "Our customers are seeing savings of up to 25% on their transportation by shipping in railcar."
For more information about MHF-SCS Carload Solutions, please visit www.mhfscs.com and click on "Carload Solutions" or call 1-877-452-9300 ext 7137.
About MHF Supply Chain Solutions
MHF Supply Chain Solutions is a vertically-integrated transportation logistics provider that offers seamless solutions for shippers whose needs include access to multi-modal transportation and packaging options. The company provides cost effective, reliable and personal logistics services to companies of all sizes throughout North America and specializes in the planning, management, equipment, and personnel necessary to transport large volumes of material via rail and highway.
MHF-SCS is a division of MHF Logistical Solutions, Inc., a rail-centric, asset-based, third-party logistics provider that offers seamless solutions for generators and shippers in the nuclear utilities, environmental services, mining, metals, and chemical and petrochemical industries.
SOURCE: MHF Supply Chain Solutions
