Several years ago, a retail giant Wal-Mart is declaring the use of RFID in all its supply chain processes, since then there were a lot of CRM suppliers improving and integrating RFID on its SCM software.
Simply put, The idea of using RFID is to attach RFID tag on each item, from small items such as tooth paste to large object such as industrial parts, that way they can track down every item’s movement that goes through an RFID reader, this is truly a supply chain dream come true, because this will give a perfect supply chain visibility through out each supply chain process.
But unfortunately the cost to implement this is also very expensive, because the price of RFID tags is not cheap and it didn’t stop there, the infrastructure also lacking pervasive network of readers around the world, to have a complete tracking on each of the items using RFID, it means that you should have bar code scanners everywhere.
Those challenges are probably the main reasons why a lot of third party logistics (3PL) providers that have implemented RFID enabled on its SCM-logistics system are not getting high demand from the customers. Who can blame them? If we should put a costly RFID tag on each of the product, then the cost will be like double or even triple.
Someday when the cost of RFID tags drop into just a few pennies or even less and the RFID will be pervasive all around the world, we can experience the full strength of RFID in tracking down products starting from the manufacturer factory into the arrival in the local warehouse.
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