How Radio Frequency Identification Application Improve the Supply Chain

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For the retailing statue, RFID tags attached on the expensive items or all products in store that can provides a much more robust type of security as compared to barcode scanners, as the barcode pattern is prone to being replicated and easy to remove and destroy (Lin, Elmongui, Bertino and Ooi, 2007). When the customer or culprits are stealing the products out of the store, RFID will sound an alarm to notification instore shop assistant. Tracking the products location, movement instore, inventory tracking for replenishment both are more automated and less human intervention for the future (Pandey, 2009).

Few of the disadvantages of RFID are minor, but if you can minimize it that the company can just reap the significant benefits that RFID technology to be offer. Just list out either three disadvantages or issue to show RFID technology still have some room for improvement. For the setup and ongoing cost of RFID systems is being more expensive than barcode system for a smaller one company (Bonsor and Fenlon, 2007), but for a large operation which is more convenience and efficiency for each parties (Michael, Wollongong Unvi., NSW, Australia, & McCathie, 2005).

Even RFID reader does not have any line-of-sight limitations and can scan through most material, but it still have problems and difficult to read the information in case the tags are installed in liquid or metal products. Since the liquid and metal surfaces tend to reflect radio waves, which makes the tags unreadable. It will be affecting the time consuming and need to found other way for the shipping mode (Pandey, 2009).

RFID also brings up some security issues and privacy concerns. The customer will be concerns and worry about they purchase products with the tag still continues to track a person and their information can be collected by it and transmitted to the reader after the item leaves the store. Since RFID the tag can be read without your knowledge until the antenna is destroyed (Srinivasan, Aggarwal, and Kumar, 2006).

4.4 Application of RFID in Supply Chain Management

In this topic are grouped two points how RFID application in supply chain, which are logistics and management. The RFID technology can be improve the supply chain information flow and the psychical flow management (Myerson, 2007).

Importance of Logistics since the companies will be consider the time when their purchased goods can be transported from on point to another point in their supply chain (even upstream and downstream). After adding the RDIF tag the companies can be easily check when the material can ship out from the supplier, when they in and out of the forwarder or distribution centers (DC) to manufacturer that can have timing control and logistic flow (Myerson, 2007). At forwarder or DC view they are not only service one supplier or customer so the RFID tag can be help and easily for them picking and sorting by the system, when the goods arrived the centers that the RFID reader will be connect and read the RFID tag antenna that the data will show the information how to arrange the next step movement, ship location and when the goods need stop or go (Clampitt, 2010). Above points show that the RFID tag is important and help to access control in each parties from supplier, DC to manufacturer both are under psychical flow and logistics management in supply chain.

For the management stages, the manufacturer can be keeping track the material continuous quantities and position during the transition from the supplier to warehouse or DC. Since during transition the material maybe have some issue such as short ship or ship to incorrect place, but now the manufacturer can be through the system tracking material is under correct place, correct quantities and correct time (CSCMP, Chen, Gibson, Hanna and Defee, 2014). The points showing the time management is improve than before, means manufacturer be able to foresee and step forward not only waiting and wasting time for feedback from supplier and DC (RFID Journal LIVE!, 2016). The real time and accuracy information sharing are important for manufacturer for production line tracking and planning since the material quantities are directly affecting the production output to achieve the purchased goods quantities (Turner TE, 2004). They need to ensure each material and finished products are correct base on the in-house material record to reducing the opportunities for theft and lost (Charikleia, 2010). In addition, the buying companies or retailer who can track inventory of semi-finished product or finished products in manufacturer to provide quantities support. Since the RFID tag data share to retailer understanding the product’s sale potential, once they understand the product’s demand from marker and sales potential that they can stock up or stock down a particular product for fulfillment and replenishment to enable better inventory management for the both parties in supply chain (Essay, UK, 2005).

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- Case study

5.1 Company Background of Polo Ralph Lauren

Polo Ralph Lauren Corporation is a leader company set up from 1967, they have their own designs team for development, marketing for the trend and sells luxury men's, women's and children's apparel, accessories, fragrances and home furnishings to customers worldwide (Armani, 2013). The Company's brand names are including Polo Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Collection, Black Label, Lauren by Ralph Lauren, RRL, RLX, Ralph Lauren Childrenswear, Denim & Supply Ralph Lauren, American Living, Chaps and Club Monaco, constitute one of the world's most widely recognized families of consumer brands (Ralph Laruen, 2016).

5.2 The Best Supply Chain Practice

Supply chain is the network of organizations involved through upstream (supplier end of the supply chain) and downstream (customer end of the supply chain) linkages, in the different processes and activities that produce value in the form of products or services (Christopher, 1992). Polo Ralph Laruen can be identifying as a buying firm in their supply chain provide the information flows which is demand data from retailer or end customer. There are over 800 material suppliers and over 400 manufacturers in the supply network in there upstream to support whole company product provide in all categories. They will consolidate the products means material/physical flows to their 80 up distribution centers and break bulk the goods to their own retail stores, outlet online shop and over 552 worldwide retailers (Handfield,

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