Profitability Enhancement in Excellent Supply Chain Management Through RFID Utilization

The true vision for excellent supply chain management (ESCM) can be based on the principles of Quality Leadership, Customer Focused, Supply Chain Design, Integrated Information system and RFID and EPC technology. To make the ESCM successful, leaders must be committed to high standard of performance including competitive lead times to customers, highly reduced inventories, and reduced process and product complexity. Manufacturers can use RFID solutions to reduce operating costs through decreasing the labor costs, claims and returns. This will help them to increase the operating income. They also can reduce working capital by enabling reductions in inventory and lowering the inventory write-off from the return goods and those items that are un-saleable at the end. A road to success in the process of design, development, implementation and operation of a Supply Chain (SC) is the identification of superior strategies and clear objectives. To gain a better understanding of the current utilizations and adoptions of the RFID some useful applications of RFID are reviewed and discussed in this article.

Keywords:

Excellent Supply Chain Management , Strategies , Profitability , Productivity , EPC Technology , RFID Tags , and applications