Paper Example on RFID Technology and Logistics

Introduction

People know technology to be an essential tool that is used in the development of efficient, effective and competitive operations. Information technology is a branch of technology, and it allows accessing information which is processed in real time. According to Rajaman (2013), technology can enhance accuracy and speed. Through the development of new technologies, new opportunities are created. These opportunities are advantageous in a variety of functional business dimensions, and these include logistics, logistics activities which provide for transportation. There are also various external and internal factors which influence the transport and logistics sector. External factors include population decrease in developed regions, high inflation, and demographic changes while internal factors include saturation of the market, limited market growth and competition among others. Radio Frequency Identification (RFID) is a technology which institutions and companies implement as an automatic identification technology. Its primary function is to help companies track inventory more efficiently and also providing visibility of all assets in real time. The technology plays an essential role in various activities which take place in logistics. The technology helps in accurately increasing identification speed, the flow of information and material, a situation which enhances the competitiveness and performance of operations which RFID technology improves.

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SWOT Analysis of RFID on Logistics

Explanation of the meaning of RFID created the need to identify the Strengths, Weaknesses, Opportunities, and Threats to determine the impact on global logistics (Alabdan, 2014). Radio Frequency Identification positively and negatively impacts technology through technology and tracking. The following was the SWOT analysis conducted to assess the effect on technology and monitoring. SWOT analysis is essential in reviewing the integration of technology and tracking in logistics operations. Radio Frequency Identification can be applied in logistics through consignment, suppliers, transport, and storage through the installation of a central database, setting up a communication secured network, passive tag and installing database applications. In the tracking system, logistic companies can apply the technology in the process of handling packages, baggage, assembling parts, inventory control, retrieving items and navigating through marked waypoints. The type of RFID software which is applicable in the tracking system is business applications which cause loading and sorting instructions to appear on the items to enable the wearer of the data acquisition and display device not to be forced to read each item label. Tracking is also applied through application of passive tag.

Strengths

According to Alabdan (2014), the use of RFID on supply chain and logistics allowed companies to operate easier logistics and providing information related to products. Clients could quickly retrieve data from the database, and this helped in quick and efficient decision making which relates to human resource management, procurement, and manufacturing. Alabdan (2014) identified that RFID is vital in removing blind spots within the supply chain and logistics and inefficiencies such as wastage of products through spillage and mishandling.

Alabdan (2014) further asserted that when a business has a good tracking system, it helps in ensuring that products are brought within the supply chain are taken good care of and ensuring that the products are offered in their intended destination. RFID also provides that product inventories are well managed since it is efficient in its ability to store and retrieve information related to products. Logistics can encode product information as compared to the standard barcode systems which maximize inventory control and management.

Weakness

According to Alabdan (2014), it is very costly to install Radio Frequency Identification software and hardware. RFID has significant high prices because the high amount of finances is needed to purchase tags and receivers. Radio Frequency Identification is essential in tracking products within the logistics and supply chain. It requires each station to be cooperative in using the technology.

Opportunities

Alabdan (2014) explained that the use of RFID in global logistics and technology provides for logistics firms with attractive investment opportunities. The fact that there is a growing need for RFID technology points to the fact that technology is very profitable. Due to the high demand for technology, the cost of installing the technology becomes lower. The opportunities which the technology brings to the technology sector also include detection of theft and giving timely feedback from changes in distribution.

Threats

The primary threat which RFID technology would provide to global logistics is the fact that the supply chain passes through various entities. These are from growers of products to retailers. Since logistics bridges this gap, companies can measure long distances. Due to the distance between the producers and the retailers, logistics can pass through various entities which could seep privacy which RFID brings. The objects would not welcome the technology. In as much as RFID technology could improve the overall performance of the logistics industry, it could be a possible mechanism of lying off human resource. It would create unemployment since human resources would not be needed. What would be required are few individuals with technological know-how who would install and operate the system. Small firms in the logistics industry also could not afford the cost of installing and running the software.

Impact of Radio Frequency Identification on Global Logistics and Technology

Human Resource

Doan (2018) noted that the use of RFID helps human resource in global logistics and technology to handle equipment. The use of technology speeds up the identification of tagged items. When items are easily identified, the salutary effect is increased throughout. It takes advantage of expensive equipment used in handing items. There were situations when the time gained could be significant, and as a result, companies can reduce the number of machines which it uses to operate. The point is associated with human and capital investments. If the overall quantity of machine assets is reduced, there is a direct shift of human resources from manual labor to potentially higher value tasks. The total costs of operations and maintenance are also reduced.

The use of RFID in daily logistics operations and distribution of products helps in the efficient management of inventories and products. The system enables tracking of supplies which is essential in increasing management efficiency. The technology also reduces the number of human resources and the likelihood of human error, or human-made mistakes.

Doan (2018) further noted that the human resource management also employs the use of RFID in the logistics sector by applying employee management system. The system enables managers and teams working in various sections of the logistics industry to be well versed with the essential information required for the operations. RFID is also well secured, and as a result, it is not easy for perpetrators and cybercriminals to hack the system. However, the use of technology could lead to labor retrenchment. It is what takes place when technology replaces human labor, and on many occasions, people lose jobs. As a result, the implementation of RFID in the logistics sector leads to unemployment. It would, however, save costs for the logistics companies because the system will assist in managing inventory, reuse readers and tags and also save tracking and working time. If human labor is reduced, companies will maximize profits while minimizing on costs.

ManufacturingRFID technology is essential is in creating an efficient inventory management activity. Efficient inventory management is essential in logistics because it helps companies to track goods from the manufacturing point to the store. This is the work of logistics-to distribute goods and products from the point of production to the consumption point (Masum, Bhuiyan & Azad, 2013).

The technology assists in enhancing manufacturing efficiency through reorganizing and optimizing internal manufacturing operations. The most common procedures in the manufacturing industry are warehousing, purchasing, management and distribution of materials. It also impacts external supply management. The system enables the individual identification of items or products during manufacturing. The process is wireless and automatic. It also increases potential across the manufacturing industry which becomes more efficient and effective.

RFID also impacts the manufacturing scheduling of production. The manufacturers apply the technology to identify idle equipment which helps in increasing the utilization of assets. Through the utilization of assets, schedule of production is effectively enhanced. Implementation of RFID in manufacturing reduces carrying costs during supply and logistics. (Masum, Bhuiyan & Azad, 2013) The carrying costs are reduced by improving data accuracy which allows the manufacturing industry to implement inventory management.

Dolgui and Proth (2008) agreed that through the use of shipping tags during product distribution, RFID tags contain data which are related to predetermine shipping routes. When the process of manufacturing is completed, the RFID tags can help in staging out shipments. The accessibility of data necessitates the process of shipping and also reduces the required labor.

The technology is also essential in machinery integration. Machinery integration involves monitoring and controlling machinery activity. The manufacturing industry integrates Radio Frequency identification into the control systems of the machinery. As a result, the functionality of the machines is enhanced.

During the logistics process, the items transported are products of manufacturing. Transportation necessitates the need for scheduling production to meet the growing demand for commodities. Enhancing the security of the products is crucial. RFID helps the manufacturing industry to monitor and track labor and safety of products during transportation. The system is essential in tracking the performance of workers. Manufacturing industries use RFID badges to grant access in restricted zones. The manufacturers can also track and monitor the productivity of employees when they are moving throughout the facility.

Procurement

Dolgui and Proth (2008) agreed with the fact that most supply chain companies have managed to implement RFID technology in procurement and supply chain successfully. The technology connects a world of readers and tags with applications which leverage the information contained in the tags. The technology helps procurement sector through inventory control, sharing of information, enhancing privacy and authentication. Most businesses are unaware of the inventory items. There is need to at least take stoke of items annually. Through conducting physical count, firms and companies manage to determine the stock loss, errors which emerge from the transaction, wrong location, and incorrectly labeled items. The use of RFID technology helps in managing inventories earlier and come up with efficient ways of curbing the challenges.

Dolgui and Proth (2008) further noted that RFID facilitates procurement through the sharing of info between the participants in the supply chain. The technology provides information in real time through the use of a wireless tracking system. The tracking system reduces the dwelling time and upsurges shipping resource utilization. Through informatio...