How Radio Frequency Identification Application Improve the Supply Chain

1. Abstract

Radio Frequency Identification (RFID) is a powerful enabling technology that is using radio frequency transmission to automatically identify objects. This paper is to show how this technology used in a wide range of applications in our daily life, many category and industries (Weinberg, 2007). Here will be introducing what is Radio Frequency Identification (RFID), list out and provide practical examples why RFID technology becoming common. How does RFID working process and compares the pros and cons of why RFID will be replacing barcode system in face? To be identify the functional of RFID technology and how they can link in the actual business organization operation. That is so glad and appreciate that can invited “Polo Ralph Lauren” the famous business in apparel and fashion industry sharing their information to accomplish the project. Through this case study is showing the models of Polo Ralph Lauren how apply RFID in their supply chain and how to enhance and improve management of relationship in the supply chain.

1. Introduction

Radio Frequency Identification (RFID) is becoming a hot topic of further research and how to appliance technology in daily life more generally (Weinberg, 2007). Now are day, RFID is a common technology everywhere such as contactless payment for transportation area, monitoring in production facilities etc. both can represent its functions. During study the lecture “Strategic Supply Chain Management” that showing the goal of the trend should be provide the visibility in supply chain, improve working efficiency, information accuracy in logistics and security management are the most important in the recent years. Let’s see the Strategic value of RFID in supply chain management (Tajima, 2007).

1. Aims and Objectives

- Introduces Radio Frequency Identification (RFID) technology

- Benefits and Advantages of RFID Compare with Barcode System

- Based on Literature Review How RFID Apply in Supply Chain

- By the Case Study Analyzed RFID Application in Fashion and Apparel Retailing

1. Literature review

4.1 What is RFID?

Radio frequency identification (RFID) is a technology created to product tracking from 1970’s which is becoming applied widely in supply chains during 1980’s to today (Angeles, 2005). RFID is a term to describe and rendition a system that transmits the identity of items or person wirelessly using radio waves that can be defined as category of automatic identification technologies (SanJose, Pastor, Zangroniz, and Dedios, 2013). Now a day, some categories of auto-ID technologies what is practical using include bar codes, GPS and some biometric technologies, such as fingerprint recognition. And it is use becomes a common technology all around us in our daily life. If you have ever chipped in access management, used EZ Pass through a toll booth, contactless payment (Collins, 2004), machine readable travel documents or even person and tracking, all of them showing RFID is becoming everywhere that people just did not notice and do not know this is RFID technology (Turner TE, 2004). All of them using propose should be to reduce the amount of time and labor needed to input data manually and to improve data accuracy (Owunwanne and Goel,2010). But let’s see the bar code systems; it often required a person use the scanner manually scan a barcode, label or tag one by one to capture the data. So RFID is designed to enable readers to capture data on tags and automatic transmit data to a computer system without needing a person to be involved that is much save manpower (Violino, 2005). RFID technology can detect a business transaction of an entity and keep tracking of its consecutive movements. Another technology makes it possible to share the transaction data with other related business partners through the system (Yee and Oh, 2012).

4.2 How does RFID Work?

RFID with a tag attached to a product which identifies and tracks via radio waves and also can be reuse for very long periods of time. The tag have hold on the information that is the electronic product code (EPC) have unique number or number plate to each tag that developed and created by the auto-ID center to be linked up information flow to the system (Violino, 2005).  This technology has designs by three components including: a scanning antenna, a reader with a decoder to interpret the data and a transponder (RFID tag) pre-set with information (Somapa and Fongsuwan, 2015). The scanning antenna releases electromagnetic waves generated and receives the radio frequency signals from the transponder. The reader decodes the data stored in the intergraded circuit of the transponder (silicon clip), and communicates them, depending on the application, to host a system. The transponder of tag is considered the core of the RFID system as it carries the data. The tag can be attached to a piece of product and inform a reader about the data of nature and location of what it is attached to (Adaptalift Hyster, 2012) (Harrison and Van Hoek, 2011).

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Figures 1: The reader and the transponder are the main components of every RFID system (Source from: http://telepathhero.blogspot.hk/2013/07/rfid-inductive-backscatter-coupling.html)

In RFID systems, the tags that hold the data are broken down into two different types: An Active RFID tag has a power source and a Passive tag does not (Zhang, Amin, and Kaushik, 2007, p. 02). An active RFID tags is more sophisticated and have on-board battery for power. The advantage of these tags is it can transmit the data signal over a greater distance that the reader still gets the signal and giving them the ability to store up to 32,000 bytes of data. The Passive RFID tags do not have batteries so it can be much smaller and have a virtually unlimited life span (Technology, 2012). It uses the radio frequency from the reader to transmit the signal and upload to the system. Passive tags will generally have their data permanently burned into the tag when it is made, although some can be rewritten (Vangie, 2005).

4.3        Advantage and Disadvantage of RFID vs Barcode Comparison

For currently now, many companies are using two forms of automated data collection which is barcodes and RFID systems. But RFID is currently being touted as a “better bar code” and “smart bar code” through understanding, application and analysis of result (Lahiri, 2005). Let’s see the analyses the pros and cons of RFID over barcodes.

Advantage first, RFID tag data support for dynamic data, rewritten many times and wireless updates the information in the tag through the system but the data on barcode is only one time, save one memory, static and cannot be changed that will be more save cost for printing the new barcode for new data need to be revised or change (Pandey, 2009). Compared with barcode, RFID is more useful since it can provides global applications, real time and automatic tracking read non-static data which means it does not need a line of sight to read RFID tag data since the radio waves can pass through the solid objected, carton inside or plastic polybag. But line of sight requirement to read an intact barcode sticker also limit the ruggedness and reusability since the printed barcode must be sticker on the outside the product when you scan the barcode without damages (Beal, 2005). The winning and more convenient place of the RFID should be the data will be automatically upload on the database system once the reader scan the tag everywhere such as merchandises in production statue, when the  merchandises in and out distribution center (Technology, 2012). In addition, a RFID reader provide a multiple reads function means it can read several RFID tags within a very short period of time and automatically once they set up the RFID reader and equipment however barcode reader can only scan one bar code at a time, to compare the labor cost for scanning each barcode and time saving are important and pursued in the future (Holloway, 2006).