Supply Chain World Volume 11, Issue 3 2024 | Page 24

Inventory Management _____________________________________________________________________________________
Solve supply chain challenges with data-based RFID technology
Industrial entrepreneurs were in the right place at the right time to solve longstanding inventory tracking issues with proven RFID technology .
The RFID industry had made huge strides in improving its label printing and encoding hardware while also driving down RFID tag costs . This allowed for sophistication of implementation that used easy-to-use digital technology at a price that would ensure a quick return on investment ( ROI ).
Today , data-based RFID technology offers a new generation of e-commerce that digitizes onsite inventory – turning any inventory storage area into a virtual vending machine that can drive replenishment orders directly into the supplier ’ s ERP and the consumer ’ s MRP systems .
This type of RFID technology , which uses smart labels to track parts and materials , offers many advantages for an inventory management solution that revolutionizes the supply chain :
1 . There is a growing online community built around the idea of Cloud Sourcing™ .
This collaborative approach to B2B supply chain management offers the market ’ s first true omnichannel platform that accommodates both the physical ( inventory – logistics , storage , tracking consumption , and organizing ) and the digital ( data – analytics , forecasts , and replenishment metrics ) aspects of complex supply chains . Plant managers can put any of their current suppliers on the system to create the open platform , which provides one-touch integration across all channels to provide a superior customer service experience . While the adoption of tech systems usually means plant managers must make big changes , this is not the case with RFID .
2 . It shifts the competitive advantage back to the independent suppliers .
Through collaboration , independent suppliers collectively act as one giant provider , giving them the competitive advantage they need to compete in this increasingly consolidated marketplace .
3 . This original solution is not based around traditional archetypes like ‘ sales reps in trucks ,’ or plastic binbased inventory Kanban systems .
Instead , it offers a flexible solution based around smart product packaging . Smart labels can be applied to any packaging material , allowing consumers to track one-piece flows or bulk quantities of cheap parts like plastics or packaging materials .
It ’ s a simple solution to automate physical inventory supply chains that also provides a digital data foundation for future innovations , which typically begin with better analytics . The system digitizes physical inventory consumption and uses that data to automate every aspect of the supply chain , regardless of complexity .
What started with a simple goal of getting our eyes on the customer ’ s inventory blossomed into an almost endless variety of ROIs for both suppliers and their industrial consumers . Who knows what the future holds , but it certainly looks a lot more like Neo ’ s Matrix and a lot less like the Pony Express . ■
Andrew Johnson www . shelfawarevmi . com
Andrew Johnson is an entrepreneur , inventor , and business owner . Formerly the sales manager at his family ’ s distribution company , he is now the CEO of ShelfAware , which is redefining industrial supply chains by leveraging RFID technology , the internet , and the power of data .
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