If technology continues to advance, humans may be obsolete in the supply chain as a result of both automation and RFID utilization. Both technologies have been introduced into the supply chain over the past decade, resulting in a major shift in performance and costs. While automation is a process which can navigate product throughout facilities, RFID can improve efficiency dramatically as well as being the major driver for the elimination of human involvement in the supply chain.
Companies line Adidas, C&A, Decathlon, Lululemon, Jack Wills, and John Lewis, measured impact of their RFID program. The overall improvements in sales was typically between 1.5% and 5.5%.
RFID offers exciting possibilities. It solves some of the biggest problems in supply chain management, like:
- Collecting, managing, and analyzing large sums of data,
- Keeping labor costs low,
- Optimizing operational costs,
- Using working capital effectively,
- Mitigating security risks,
- Adhering to regulatory and compliance standards.
Of course, RFID technology is an up-front investment and it’s not a cheap one. The cost of RFID has come down significantly over the past couple of decades, making it more attractive for downstream retail operations. However, it’s still important to assess exactly how RFID can deliver the most bang for your buck.
Approaching RFID this way helps you process all the dazzling applications of RFID in context. Because the truth is: RFID is pretty cool, and it brings serious potential to transform your business, but it all comes at a cost.