Role of technology in supply chain (RFID) - Research Paper Example

RFID technology has allowed organizations to track packages using a phenomenal technology. Before analysing the benefits, it is crucial to understand how RFID works. RFID has three crucial components that consist of: scanning antennae, transceiver with a decoder, and a transponder. The scanning antenna transmits a radio-frequency signal from a short range that enables objects to be tracked. When an RFID tag passes through the field of the scanning antenna, it detects the activation signal that is being transmitted from the antennae, which initiates the tracking process.

That incites the RFID chip to be in active mode, in which it actually transmits back that signal. Active RFID tags use a battery to power the microchip’s circuitry and broadcast signals to the reader. However, the reader does not require the utilization of battery. One of the similar concepts that has been embedded in supply chain management is bar code technology. Bar code technology offers a parallel approach to how RFID have benefited supply chain management. In essence, both are parallel and supplement the facilitation of supply chain management.

The conducive benefits of RFID systems however are much prolonged because of the scanning speed and optimal high noise immunity. Since RFID is based on radio frequency waves, it allows a more seamless approach to the future technology. With the advent of LTE spectrums being bought by phone carriers, manufactures can monitor RFID by the touch of the button from their personal devices. In the realm of retail merchandise, RFID works by using the similar concepts (Espejo 22). A tag or a unique transceiver with a coder is embedded in an object.

One of the best things about RFID is that they do not require batteries and can be used for longer durations. This allows supply chain management to truly optimize their supply chain. One of the major challenges in supple chain is to track inventory