RFID: From closed systems to improving visibility in the manufacturing supply chain

In many industrial sectors, the use of RFID in closed systems is evolving. To be implemented in global supply chains, all aspects related to RFID need to be standardised. By collecting, processing and distributing information efficiently, organisations should be able to improve the efficiency of their transport logistics processes, lower their operational costs, and improve their portfolio of logistics services. This case study describes the current perspectives, challenges and benefits of RFID applications in manufacturing industry. Automated, remote and wireless identification is a basic element in implementing efficient management systems in the supply chain. The most important identification techniques are barcode and RFID. Barcode is currently the most widely used method for the identification of parcels, but RFID is more suitable for automated identification for many different reasons including better readability and enhanced environmental durability. By reducing manual work and errors, RFID generates cost savings, increased productivity and efficiency of processes. There is a wide range of different RFID technologies that have varying reading ranges, protocols and data contents. There are two different approaches to using RFID tags and numbering the items to be identified. Recent standardisation developments have started to resolve the interoperability problems in the field of RFID identification.