The Pros And Cons Of RFID In Supply Chain Management

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The Pros and Cons of RFID in Supply Chain Management

This paper provides the positive and negative effects with radio frequency identification (RFID) in the method of supply chain management (SCM). Whereas RFID has a larger number of advantages than its forerunner, the bar code, it presently comes at a value that many organizations still consider unaffordable. At the same time, RFID is advantageous because it does not need line of sight scanning more superior in terms of its power to store and update information instantaneously, and non-line of sight (nLoS) ability to be read. It causes to less labor, increase visibility and improve record management. Yet RFID is more costly and for the present barcode is still the most widely used
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Nine out of ten organizations rate SCM and inventory control as the solution to their company’s future accomplishment, even continued existence. Radio Frequency Identification (RFID) knowledge has opened the gate to a new age in SCM, impossible using on hand barcode expertise. Important corporations have known the essential advantages of RFID and freshly moved to establish the technology in SCM by establishing a go-ahead by forcing vendors to utilize RFID as well. But there is still unwillingness in the commerce community to spend huge amount of assets in this new technology that is still need to verify itself. Compounding this disinclination is the detail that most of these businesses have invested a lot in legacy bar-code systems. There is first choice to make use of a careful approach, waiting to visualize what international business leaders do. Due to this cause, this paper is strategic in describing the business society of the advantages and…show more content…
Given that RFID is an upcoming technology, trust for literature was based on a huge range of online industry sources, including web sites of RFID vendor, principles organizations, press releases and whitepapers. The sources which are online were match by hardcopy documentation contains books literature and educational papers. The appropriate material was collected, classified and sorted into like themes which shaped the basis for the pros and cons of RFID in SCM. Semi-structured interviews were also used to supplement and more authenticate the result of the content analysis. Participants were employees of a Shaheen Air company. STATEMENTS OF HYPOTHESIS
Based on the above arguments, following hypotheses were developed:
Hypothesis 1: RFID’s most attractive feature is not requiring line-of-sight when reading RFID tags.
Hypothesis 2: RFID can perform much better in terms of high reliability with accurate data reading.
Hypothesis 3: Fully automatic system allows inventory management automatically.
Hypothesis 4: There is no doubt that deployment cost and standard issues are comparatively high as compare to bar code systems.

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