Download - OIM ppt Group 2 Mod 2010 E2
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In Wal-mart
Mod 2010 E2 Group 2 Presentation
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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?
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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?
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Effectively used in supply chain management Also extensively used in
◦ manufacturing,◦ production,◦ banking,◦ oil exploration and◦ shipping logistics.
WHERE CAN RFID BE USED?
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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
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Implants ?RFID on drivers licenses ?Tracking of products after leaving the store ?Security of people ?
The Controversial Side of RFID
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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
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(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
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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