How rfid might be applied to the supply chain of WoolworthsIntroductionSCM (Supply Chain Management) is the process by which information and materials are managed and controlled from acquirement of raw materials to delivery. SCM is the key to many organizations future success as well as market survival. RFID is a technology that has been embraced by different organizations in supply chain management. RFID has higher advantages than bar code technology. However, it is expensive hence many organizations are not able to embrace it currently. This paper will discuss how RFID might be applied to the supply chain of Woolworths. Woolworth’s company backgroundWoolworths limited is one of the largest supermarkets in Australia which involves supply of fresh produce.
Woolworths maintains more than 700 supermarkets and uses a wide range of technology in its supply chain. However, some of these technologies are very expensive hence challenging the company. Technology vendors used by Woolworths include telecommunication companies, integration specialists and RFID tag suppliers. The aim of these vendors was to inform Woolworths on the importance of adopting RFID while Woolworths will determine which vendor is offering its services at a cheap price.
This is as a result of Woolworths having invested a lot in tagging (Goldman and Crawford, 2003). MethodologyTo ensure RFID worked effectively in Woolworths, a research needs to be carried out by the project managers since it’s a new technology. Information must be collected from the existing sources as well as organization which have successful adopted RFID. Project managers will use qualitative content analysis as a method of data collection. Information from relevant sources such as vendor websites, journals and academic papers will be used.
The information will be gathered, sorted and categorized depending on disadvantages and advantages. Likewise, interviews will be carried out which will involve employees in companies which have embraced the technology (Hickey, 2003). Advantages of RFID technologiesRFID has various advantages to organizations which embrace it. They include the following: Automatic non-line of sight scanningRFID does not require line of sight to read its tags. Items do not require scanning which is a necessity in barcodes. This technology can be embraced by Woolworths in sale of fruits where they won’t require categorization. This will assist Woolworths in supply chain since RFID will be able to scan multiple products simultaneously.
In addition, tasks such as scanning and checking incoming inventory which are labor intensive will be automated making work easier. Likewise, Woolworths will be able to check stock levels hence less out of stock incidences as well as lowering inventory costs (Kinsella, 2003). .RFID will help to reduce labor in WoolworthsInstallation of RFID helps in automating supply chain in companies. If Woolworths embrace RFID technology, its supply chain will be automated hence reduce labor in the company.
Labor cost accounts for 45-75% of the company distribution costs. Use of RFID technology will reduce check in time for up to 90% hence ensuring the quality of the fruits is maintained. Likewise, order picking will be increased hence yielding more savings for the company. This demonstrates that the company will have high turnover due to reduced costs. Additionally, drivers will not have to stay at the weighbridge since it will be automated.