RFID+ Supply Chain Management, Open the Era of transparency

In recent years, with the continuous maturity of RFID technology, there have been many attempts to implement RFID+ in various fields such as finance, medical care, supply chain, and the Internet of Things. RFID technology has gradually become a technical tool and means for enterprises to improve logistics supply chain management, reduce costs, enhance enterprise management information, and enhance their core competitiveness.

For the supply chain management field, because the market is large enough to meet the characteristics of multi-trusted entities, multi-party collaboration, low-frequency transactions, and complete business logic, it is naturally the place where RFID is used and attracts attention. With the deepening of the global division of labor, the supply chains of modern enterprises continue to extend, with features such as fragmentation, complexity, and geographical dispersion, which have brought great challenges to supply chain management. The finished products are largely controlled by outsourced suppliers. Manufacturing and the number of suppliers is huge, distributed in various places. This status has led to the opacity of the supply chain, and information asymmetry has led to high friction costs. With its fast, real-time, and accurate characteristics, RFID can improve the core enterprise's control over the supply chain, thereby making it possible to efficiently and accurately trace the product. In reality, when commodity information, logistics, and capital flows are all recorded on the chain, combined with the Internet of Things technology, a new business model is created.

Internet of Things technologies such as RFID can build an alliance chain including manufacturers, suppliers, distributors, retailers, logistics companies, end users, etc. around core enterprises, and record the flow of capital, information, and goods on the chain cannot be tampered with, greatly simplifying collaborative work. Real-time recording and sharing of the latest developments in each link of the supply chain allows core enterprises to achieve a penetrating grasp of the supply chain, timely understand the production, quality, and transportation of orders, and make the supply chain transparent and visual. Transparent real-time management can reduce the inventory cost of enterprises, provide immediate support for enterprises to respond to emergencies, and provide convenience for auditing.

The transparent construction of the supply chain will realize the information management of goods, improve the management level of manufacturing enterprises, reduce management costs, enhance core competitiveness, increase production efficiency, and shorten capital turnover time.

1.Conducive to the reduction of corporate inventory costs

Reduce the time of product inventory and reduce the degree of product backlog, and then achieve "zero inventory", which greatly saves the company's raw material supply, warehousing and management expenses, and saves a large amount of space cost investment.

2.Conducive to the reduction of labor costs for enterprises

Make the supply chain reach a high level of automation, effectively save the traditional logistics center resource occupation, labor costs, and save order compound labor and transportation process confirmation costs.

3.Conducive to the reduction of business transaction costs

Inventory can be quickly counted to reduce out-of-stock and out-of-stock products, enabling companies to replenish goods in time to meet market needs.

In addition, the indirect benefits brought about by the transparent construction of the supply chain include improving service quality, accelerating cargo turnover, and realizing visual management. Customers can check the delivery status of their ordered goods at any time. Enterprises can also keep track of the status of vehicles at any time, arrange the transportation of goods in time, reduce the waiting time of vehicles, and improve the level and quality of customer service, in order to achieve the purpose of attracting more customers. At the same time, due to the reduction of inventory and the improvement of transportation efficiency, the turnover of goods has been accelerated, the utilization rate of working capital has been improved, and the profit of the enterprise has been improved. Suppliers can grasp the sales information of footwear manufacturers in time, thereby eliminating the lag of information and making products more competitive.

4.Conducive to the enhancement of corporate brand and competitiveness

Enterprises can eliminate the negative impact caused by the shortage of goods and enhance their market competitiveness. At the same time, the quality of customer service can be better improved through visual inventory management, thereby further enhancing the corporate brand image.

5.Conducive to improving the traceability of the supply chain

The modern supply chain encompasses all aspects of the production and distribution of commodities. From raw materials to finished products delivered to consumers, the supply chain covers a wide range and lacks supervision. Buyers lack a reliable way to verify the authenticity of commodities. The transparent construction of the supply chain can fully improve the traceability of the supply chain and protect the brand reputation.

6.Conducive to open up data islands, link digital assets, and build new business models

The information system of the traditional supply chain is distributed in the hands of different participants, and production, logistics, sales, circulation, raw materials, and supervision information are completely separated. There is no completely credible platform around the product that gathers all product information. These data islands have caused problems such as cumbersome information verification and unbalanced data interaction, and sometimes even repeated offline checks are required to complete reconciliation. Due to the high audit costs caused by payment and billing periods, financial risk control operations are difficult.

The transparent construction of the supply chain uses RFID technology as the data collection method, Internet network and database technology as the data support, builds a supply chain management system, realizes the transparent construction of the supply chain, and forms a rapid response in warehouse management, logistics distribution, store management, etc. , Efficient and accurate management mechanism and anti-counterfeiting and anti-smuggling mechanism. It can help realize the democratization of data, connect distributed databases, and protect the privacy of all parties involved through encryption algorithms. It will provide more data sources for big data analysis based on the supply chain, improve data quality, reduce the risk of data leakage, fully link digital assets, and make big data credit investigation possible, which has significant economic and social benefits.

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