Supply%20Chain%20Management%20technologies:%20RFID%20and%20XML

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Supply Chain Management technologies RFID and XML
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RFID Radio Frequency Identification

• Reader (transmitter/receiver)
• Tags that respond to a radio frequency
• Transmits unique Identifier 8-12 bytes
  (characters) at different frequency
• Does not have to be line-of-sight
• Lots of Applications Software

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Applications

• Check out POS terminal
• Inventory tracking (Wal-Mart, DoD)
• Animal tagging
• Secure car key (Toyota)
• Purchase gasoline (Mobil)
• Doorway access control

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Passive vs. active tags

• Passive tags
• Uses transmitter RF signal for power
• Long lifespan
• Costs start at about twenty cents
• Low frequency range is less than 6 inches
• High frequency range up to 12 inches
• Ultrahigh frequency several yards

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Active tags

• Active tag
• Uses a battery to respond
• More range, up to 1Km
• 3-5 year battery life
• Can cost several dollars

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RFID quiz

• Q 1 What kind of tags are we using in lab?
• Q 2 Does the orientation of the tag affect the
  ability to read its contents? (try all of the
  tags)
• Q 3 Does placing a tag in a metal can affect the
  ability to read its contents?
• Q 4 Why is the flat tag Read/Write?

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RFID advantages

• Less human intervention
• Real-time information flow as item changes state
• Off truck
• Off shelf
• Purchased by customer
• Reduce lost or stolen inventory
• Machine-to-machine communication
• Package routing

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RFID challenges

• Interference with object or other readers
• Range
• Data formats and standardization
• Different countries allocate different
  frequencies
• Cost for readers, tags and system

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Bar Code vs. RFID scanning

• Line of sight
• Right-side-up (must physically align carton)
• Can tear
• Limited amount of data
• No encryption

• Can read through objects
• Tag orientation less of a problem
• Can store megabytes of data, if needed
• Can be encrypted

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UPC versus EPC

• Universal Product Code
• For Bar coding
• Contains MFR ID number (5 digits) and Item Number
  (5 digits)

• Electronic Product Code for RFID apps.
• Contains 96 bits
• EPC manager ID (MFR)
• Object class
• Serial number
• Can track a particular case of toothpaste !

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RFID supply chain integration

• Supplier
• Store EPC pallet contents on DB
• EPC has supplier-ID and database key.
• Ship pallet with tag

• Buyer /shipper
• Pallet arrives
• automatically scanned for EPC
• Get contents from Supplier DB

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RFID future

• RFID tag as a sensor
• Temperature spoilage
• Package opened drugs
• Larger memory
• Car repair history
• Medical history
• Can we recycle RFID tags?
• Chip-kill technology
• Privacy track movement of people (ID card,
  E-ZPASS) or post-sale disposition of items.

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Supply Chain Management (SCM)

• Definition
• A cross-functional inter-enterprise system that
  uses information technology to help support and
  manage the links between some of a companys key
  business processes and those of its suppliers,
  customers, and business partners

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SCM Life Cycle
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Electronic Data Interchange (EDI)

• Definition
• Involves the electronic exchange of business
  transaction documents over the Internet and other
  networks between supply chain trading partners
• Standard industry format to send RFQ, PO,
  Receiving notice, payment notice, Invoice,
  Payment remittance notice, etc.
• Now being replaced by Web and XML.

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EDI Activities
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SCM Planning Functions

• Supply Chain Design optimize network of
  suppliers, plants, and distribution centers
• Forecasting customer demand by sharing demand and
  supply forecasts instantaneously across suppliers
  and distributors

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SCM Execution Functions

• Materials Management share accurate inventory
  and procurement order information, ensure
  materials required for production are available
  in the right place at the right time.
• Collaborative Manufacturing optimize plans and
  schedules while considering resource, material,
  and dependency constraints

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SCM Execution Functions

• Collaborative Fulfillment order management,
  vehicle scheduling, and support the entire
  logistics process, including picking, packing,
  shipping, and delivery in foreign countries
• Supply Chain Event Management monitor every
  stage of the supply chain process, from price
  quotation to the moment the customer receives the
  product, and receive alerts when problems arise
  visibility!

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Business Value of SCM

• Benefits of SCM
• Reduces production and distribution costs
• More information gt
• less inventory, less lead times needed
• Improves timeliness of shipments
• Increases supply chain velocity
• More accurate fulfillment
• Improves visibility of supply chain

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SCM Benefits

• Fewer employees needed to manage supply chain
• Better customer satisfaction less stock-outs
• Strategic relationship with suppliers, enables
  new business partnerships
• Collaborative Planning, Forecasting, and
  Replenishment systems (CPFR).
• Collaborative downstream customer service,
  marketing, and relationship management.

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Technical Challenges of SCM

• Acquisition of secure extranet
• Software can be confusing, contradictory and not
  sculpted to their needs difficult to implement.
  
• Emerging standards, high costs.

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Organizational challenges

• Changes company structure resistance from
  employees wedded to traditional processes, leads
  to lack of adequate collaboration among
  marketing, production, and inventory management
  departments within a company
• Supplier reluctance or incompatibility issues.
• Lack of proper demand planning knowledge leading
  to inaccurate or overoptimistic demand forecasts.
  Need new tools and guidelines.

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Fun with XML

• Standard way to describe structured data within
  an organization or across the Web (metadata
  included in file).
• Can check validity using a set of rules in a
  schema definition (xsd) file, using a validating
  XML parser.

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XML rules

• Each element tag is user-defined, within angle
  brackets
• ltpurchaseOrdergt lt/purchaseOrdergt
• Each element can have sub-parts
• ltAddressgt
• ltstreetgt 515 Loudon Rd. lt/streetgt
• ltcitygt Loudonville lt/citygt
• lt/Addressgt

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XML Schema definition file

• Rules besides well-formed XML
• Order of elements
• ltxsdsequencegt lt/sequencegt
• Data type string, date or decimal
• ltxsdelement namezip typexsddecimal /gt
• Optional elements
• minOccurs0

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On Your Own

• Coors Case worksheet
• XML exercise
• Online quiz