oim ppt group 2 mod 2010 e2

In Wal-mart

Mod 2010 E2 Group 2 Presentation

It is wireless technology that enable users to identify and transmit information from a tagged project.

Not every object needs to be bar coded (different from old bar-coded system)

Relatively new technological development. Not widely used due to expensive

implementation of the system.

WHAT IS RFID?

A reader picks up data from a barcode

Sends it to software known as “middleware”

Middleware classifies raw data After classification the same software interprets the data

Managers gather the data and derive applicable information

How does it function?

Effectively used in supply chain management Also extensively used in

◦ manufacturing,◦ production,◦ banking,◦ oil exploration and◦ shipping logistics.

WHERE CAN RFID BE USED?

Increased efficiency and transparency in their supply chain, management and payment systems.

Not necessary to physically locate goods and objects More effective stock controls

◦ Inventory reduction◦ Less stock outs◦ Reduced purchasing costs◦ Reduced theft

Reduction in overheads◦ Less employees required to manage stock◦ Less security costs

Why Change to RFID

Implants ?RFID on drivers licenses ?Tracking of products after leaving the store ?Security of people ?

The Controversial Side of RFID

Issues to be Aware of Non-removable tags keep on

transmitting Retailers can scan customers who

carry RFID marked items, later recognizing them in their shops

No RFID regulations adopted globally. Problematic -import and export with tagged objects

Underestimated training cost to use new system by Wal-mart

(2003) Top 100 suppliers need to convert to RFID by 2005 at

case level Supplier covers all the cost installing RFID approx 8

million dollars (resulted in slap and ship - no value added)

Price of tags high – supplier carries cost (2007)

Implemented with select group of suppliers Used buying power to reduce tag prices Improving the value proposition by labelling

individual items

WAL-MART STRATEGY 2003 AND 2007

Wal-mart as a market leader will help to sustain RFID in retail

Forced implementation strategy in 2003 not successful

Other organisations looked at Wal-mart and learned from their implementation mistakes

Real time and efficient information within supply chains is crucial for success

It is only a matter of time

Conclusion