RFID, EDI, and ERP Innovations - Research Paper Example

RFID, EDI, and ERP Innovations Affiliation RFID, EDI, and ERP are innovations that are widely used in the logistic segment of all types of industries. They provide numerous benefits such as reduction in expenses, trimming down labor requirements, and decreasing the amount of time used to transmit messages. In addition, they are of great help in the successful management of industries. The research paper looks at the three through conducting extensive research of academic resources. The approach used is based on their history, application in the real world, features, and components. By using this approach, the research paper is able to present a wholesome aspect of the three innovations. The conclusion summaries the concepts of the research in an all-encompassing manner by touching on every bit that the research paper has touched on. It will be noted that a modern efficient company has to make use of these innovations in virtually all of its departments to ensure the tasks and needs are accomplished. RFID, EDI, and ERP Innovations Introduction The 21st Century has seen a sudden change in the way human beings tackle problems, especially in the day-to-day operations. At the forefront of this change are the technological innovations that have been invented to address these issues. Logistics has not been left behind in the use of technology. In fact, it can be said that the organization of the movement of materials from a source to a factory or industry, the development of these materials into products, and the transfer of the products to the market applies a lot of technological innovations there in between. As such, the paper seeks to look at three of these technological innovations, which have been used to successfully enhance smooth operations of the changes and transformations that take place right from the source material to the final delivery of the product into the market. The three technological inventions are the Electronic Data Interchange (EDI), Radio Frequency Identification (RFID), and Enterprise Resource Planning (ERP). To have a clear perspective of what is covered in the paper, it is important that these technological applications are defined. EDI is termed as the transfer of documents in business through a typical arrangement from computer-to-computer. In its description, it implies in an indirect manner, the capability of organizations to share information. ERP means the system of information that incorporates all the data, flow of information, and tools of organization through a single data base. Hence, it is regarded as the foundation of the infrastructure of the information technology (IT) of any organization. RFID is defined as a technology used in virtual communication to exceptionally recognize individuals or things. Thus, it brings together several forms of information technology as shall be shown in the paper (ZongWei, 2012). RFID History To gain an understanding of this technology, it is important to look at its historical development. The research conducted does not yield a particular point of development of RFID because its history is entwined with that of other technologies in the communication sector. Hence, it can be said that through the development of these other communication technologies, RFID was realized over time. In The Nineteen Forties, a British scientist, Watson, is said to have developed a system similar to the one RFID uses to function. Nevertheless, the first utilization of RFID can be traced back to the Nineteen Seventies. This initial RFID system had a range of only a few meters. In the Eighties, the system began being commercialized. At that time, it was characterized by being a system, which was exclusive. It could not be operated from system to system and was expensive to implement. In the Nineteen Nineties, RFID broke into the conventional industry. Hence, it saw the application on systems erected on the roads such as toll in the USA. Moreover, there emerged a group of governmental organizations intent with setting up RFID usage regulations. An example is the International Organization of Standards (ISO) (Rida, Yang, & Tentzeris, 2010). From the year 2000 onwards, RFID began to be utilized in large numbers and many system applications. The utilization was triggered by the availability of tags that only cost 0.05 dollars, which was quite cheap (Rida, Yang, & Tentzeris, 2010). Considering all options at that time, RFID offered the best options for the retail sector and product supply. To put this into context, there emerged a grouping of three categories. The three categories were grouped in accordance to how they took up the use of RFID. The categories were slow adopters, early movers, and fast followers. The slow adopters were the companies, which took up RFID later, the early movers are the ones that initialized the utilization of RFID, and the fast followers are those who studied its adoption, usage, and then utilized it at a specified time (Rida, Yang, & Tentzeris, 2010). RFID Components An RFID system is comprised of a reader, middleware, and tags (Rida, Yang, & Tentzeris, 2010). Essentially, the reader recognizes the tag through wireless or virtual communication. The reader is described as the electronic part, which obtains and conveys the radio waves utilized in the communication. The reader is itself made up of the Integrated Circuit (IC) board and the antenna. The function of the integrated circuit board is to process the obtained information and in turn convey the same to the tag. Most importantly, it utilizes transponders in the communication. The antenna captures and conveys the radio waves. It is a critical component that requires careful selection without which the use of RFID is bound to fail (Banks, 2007). The middleware implies the soft and hardware needed to convey the obtained information to other systems, manage information flow emanating from numerous readers, and analyze the data received from the tags (Amadi-Echendu, Brown, Willett, & Mathew, 2010). Fundamentally, it separates data as required functioning as a traffic information controller due to the presence of the electronic product code (EPC) that is exceptional to each product (Violino, 2005). The tags used in RFID are said to be either semi-passive, passive or active. They are grouped into five categories depending on how they function and their ability. The active tags convey data to the reader while the reader examines the passive ones to obtain information. The active tags need outsourced power while the reader is used to power the passive tags. As a result, their ranges vary from a centimeter to several meters for the passive tags and many meters for the active tags. The category four and five are active tags, category three are semi-passive while category two and one are passive tags (Amadi-Echendu, Brown, Willett, & Mathew, 2010). RFID Applications At the moment, the application of RFID is massive, it is seen in many industries, companies, and renowned businesses. RFID is been used in the Defense industry to track, recognize, and evaluate arms. The industry also uses it for logistics support. It has also been employed in the guarding of the environment to trail materials that are a hazard, and in the shipping industry for identification. RFID is also used in the management of warehouses and fleets (Amadi-Echendu, Brown, Willett, & Mathew, 2010). In the real world, two of the most conspicuous applications are the United States Department of Defense (DoD) and Walmart, which is one of the greatest retailers. Both of these organizations representing different industries demanded that their suppliers tag the goods they supplied them with using EPC. For Walmart, the directive was issued in 2005 while the DoD followed suit later. The aim of both of them was to enhance smooth logistical operations due to numerous supply material, reduce labor cost, loss of product, and ensure the appropriate stocking of the supplies (Univeristy of Houston, n.d.). Exxon-Mobil also uses RFID in its speed-pass through an application called the point of scale (Hunt, Puglia, & Puglia, 2007). ERP History The ERP system has a history spanning over three decades that history can be traced back to the beginning of the Nineteen Seventies. However, it did not start as ERP in the beginning but as material requirement planning abbreviated as MRP. At that moment in time, MRP was triggered by the utilization of computers in industries (Ptak & Schragenheim, 2003). MRP isdescribed as a joined system that used computers to compute the programs of delivery and the materials to be supplied. It was widely used in supply and logistics to determine the materials to be bought along with needed capacity (Ptak & Schragenheim, 2003). The next change in ERP history took place in the Eighties where the manufacturing resource planning II was developed (Ptak & Schragenheim, 2003). It was developed as a consequence of the need to combine finance and logistic planning. Thus, the cost of sales, procurement, dealings, and marketing charges was integrated with the logistics such as how to distribute and accommodate the purchased materials. Moreover, it availed for a single database from which the output and input was assessed. In the Nineties, the current system of ERP was founded. The primary reason for its establishment being the development of individual computers. Thus, the present system of ERP took advantage of these computers and servers hosted by individual companies (Ptak & Schragenheim, 2003). An important turning point was the Y2K problem (Wagner & Monk, 2008). The current system of ERP offered a solution to the Y2K issue; hence, a significant adoption of ERP by companies. The advent of the internet revolutionized ERP in the latter period of the Nineties making it internet empowered (Wagner & Monk, 2008). ERP Components and their Principles It is fundamental to note that ERP is controlled by processes. Hence, it can be said that it amasses various management aspects like logistical operations and costs into several processes that are established around computers (Yang, Ginige, Mayr, & Kutsche, 2009). Erp does not have tangible components; however, it is an intertwined group of processes functioning together to accomplish a certain task (Yang, Ginige, Mayr, & Kutsche, 2009). Some of these processes include capacity building, purchasing of supplies, accomplishing orders, transport of finished goods to the clients, timing and organization of the production, and the administration of the suppliers (Yang, Ginige, Mayr, & Kutsche, 2009). For these processes to be met, there has to be enough access of information. In ERP, this is ensured through the provision of a single connected information database (Yang, Ginige, Mayr, & Kutsche, 2009). Also, there has to be a database that relates and assimilates all data that is keyed in, the yield of the system and the transactions. Hence, it is evident that one principle of ERP is assimilation or integration (Yang, Ginige, Mayr, & Kutsche, 2009). Further, for the processes to occur simultaneously, ERP has to be automated. The automation aspect in ERP is characterized by the recording, the transfer of information, and transacting that is all automated (Yang, Ginige, Mayr, & Kutsche, 2009). ERP has several primary applications. They are many, but only a few can be named. In the financials, there is the control of cash, assets, treasury, and property. In addition, there is the management of the accounts. Undersupply chain management, ERP is applied in the management of products, quality, and the warehouse. Further, it is implemented in the inventory and the planning of the chain of supply along with the necessary regulation of the supplies to be delivered. ERP is also used in the management of the human resource whereby the managing of the workers, their training, and the way they manage time is undertaken. Examples of real-world ERP applications include Oracle and Infor Visual (Aptean, 2015). The other one is SQLServer database provided by Microsoft as part of an ERP system (Aptean, 2015). Infor Prism is another application provided to industries that enhances the abilities of process in ERP (Aptean, 2015). EDI History The invention of the computer helped companies to process, store and later on to convey the data from the processed information. This was only achievable through telecommunication using computers. The primary aim then been the direct transfer of data between companies. It was an advantageous system that was time conscious, and it decreased the workload. Nevertheless, the interchange of data electronically in the beginning relied on agreements between two trading companies. As Garguilo and Markovitz (1996) indicate, this form of EDI was established on propriety arrangements. Hence, because of the variations in the documentation, numerous companies could not partake in the electronic data interchange. This forced research efforts geared towards a standard EDI format in the Nineteen Sixties. At that moment in time, the developed set-ups were utilized in the transport, financial, and purchasing segments of companies. Moreover, the invented formats took place within companies (Garguilo & Markovitz, 1996). The breakthrough occurred in the Nineteen Seventies when the national EDI standard began been formed (Garguilo & Markovitz, 1996). The result been the development of the Electronic Data Interchange For Administration, Commerce, and Transport and the X12 (Garguilo & Markovitz, 1996). EDI Components and Feature Elements EDI is characterized by several elements that are considered as the primary ones. They are electronic mail to convey documents and facilitate their storage. Communication that is termed as direct. That is from one application or component to another application or component. For example, OpenText Corporation (2015) gives the example of computer-to-computer. Utilization of a set form of messaging founded on international standards. OpenText Corporation explain the set standard format as a necessity to permit computers to evaluate the documents. Usage of electronic communication to convey information. However, the point that stands out is that EDI is termed to be so when not less than two companies or businesses sin the interchange of data electronically. EDI Application In logistics, the use of EDI has been hampered by the high prices of applying it. However, EDI has been praised in its application due to the way it cuts down on the cost of labor. It is important to take note of the information that is conveyed by EDI. It includes data used in transactions like that during shipping and ordering. The other type is that used in organization and reporting such as information about novel products. Through transmission of this information, EDI is applied. However, it is important to take note of two forms of EDI in the applications. The traditional EDI form, and the one based on the Web. According to Emerson Associates, (n.d.) gives real world applications of both the Web and traditional EDI. For traditional EDI, they state of the North Carolina State Ports Authority that avails communications with transporters and shippers using EDI (Emerson Associates, n.d.). They use EDI for communication to avail bookings, reports and movement of goods in and out of the port. Linx is an EDI system that is utilized in the Seattle port to augment good transport in and out of the port (Emerson Associates, n.d.). For the one based on the Web, they report of the Community Network Services (CNS), which avails the information services like website hosting concerning the freight in ports and airports in the United Kingdom (Emerson Associates, n.d.). Another real world application of EDI is the Bills of Lading for Europe (BOLERO) that ensures the safe conveyance of documents used in trade deals in an electric set-up (Emerson Associates, n.d.). There also is inttra, which functions to aid clients in tracing containers while being shipped (Emerson Associates, n.d.). Conclusion EDI, RFID, and ERP are all innovations that have been fuelled by the advancement of technology. They find purposeful uses in supply and logistics though their application differs. However, the research paper seems to suggest that in one way or the other they are related in some aspects especially in their utilization. Their mode of development, as shown by the history, differ, so does their features and composition. From the processes in ERP to the tags and readers in RFID, and to electronic transmission of information among companies, these innovations have contributed in supply and logistics within and among companies. They have all gone a long way in streamlining the way companies transact business, source for supplies and materials, and deliver products to their clients. References Amadi-Echendu, J., Brown, K., Willett, R., & Mathew, J. (Eds.). (2010). Definitions, Concepts and Scope of Engineering Asset Management. New York: Springer Science & Business Media. Aptean. (2015). ERP is available from a Number Vendors in different forms to fill the needs of all types and sizes of manufacturing Companies. Retrieved from aptean: http://www.aptean.com/additional-crm-and-erp-related-links-pages/erp-resources-folder/erp-system-examples Banks, J. (2007). RFID Applied. Hoboken: John Wiley & Sons. Emerson Associates. (n.d.). New Technologies for Transportation: EDI in Ports; RFID Tags; Port and Airport Technologies. Retrieved from emerson-associates: http://www.emerson-associates.com/port.pdf Garguilo, J. J., & Markovitz, P. (1996). Guidelines for the Evaluation of Electronic Data Interchange Products. New York: DIANE Publishing. Hunt, V. D., Puglia, A., & Puglia, M. (2007). RFID: A Guide to Radio Frequency Identification. Hoboken: John Wiley & Sons. OpenText Corporation. (2015). What is EDI. Retrieved from edibasics: http://www.edibasics.co.uk/what-is-edi/ Ptak, C. A., & Schragenheim, E. (2003). ERP: Tools, Techniques, and Applications for Integrating the Supply Chain (2 ed.). Boca Raton: CRC Press. Rida, A., Yang, L., & Tentzeris, M. (2010). RFID-Enabled Sensor Design and Applications. Norwood: Artech House. Rida, A., Yang, L., & Tentzeris, M. (2010). RFID-Enabled Sensor Design and Applications. Norwood: Artech House. Univeristy of Houston. (n.d.). Supply Chain and Logistics Technology. Retrieved from uh: http://www.uh.edu/technology/departments/information-and-logistics-technology/programs-and-degrees/undergraduate/supply-chain-and-logistics-technology/index.php Violino, B. (2005, January 16). What is RFID? Retrieved from rfidjournal: http://www.rfidjournal.com/articles/view?1339/ Wagner, B., & Monk, E. (2008). Enterprise Resource Planning (3 ed.). Boston: Cengage Learning EMEA. Yang, J., Ginige, A., Mayr, H. C., & Kutsche, R. (2009). 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