|
|
| RFID is transforming global commerce in many unique ways. RFID
provides many benefits for manufacturing Sector. RFID is evolving as a major technology enabler for
identifying and tracking goods and assets around the world. |
| To understand the impact of RFID in the manufacturing floor
environment you have calculate the return of investment (ROI) achieved by increase of visibility
and work-in-process (WIP) inventory accuracy. This reduces the operating cost and thus increases
the profit. Lead times and the total cycle times are shortened as a result of the increased manufacturing
speeds and reduced inefficiencies of the manufacturing line. |
| The automatic identification of products with RFID in the warehousing
and distribution center environments has a consequence: increased visibility and accuracy of the inventory.
This increases the warehousing efficiency and order accuracy. At the same time it reduces shrinkage, stock
outs and inventory levels. The increased warehousing efficiency has as a consequence a reduction in the
operation costs, which translates into increased profits and also a reduction in lead times. Reduced lead
times means increased customer service as well as decreased inventories along the supply chain. Ultimately,
reduced inventories increase ROI. |