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The key to finding RFID's ROI

Companies that are trying to justify RFID investment wholly on the basis of anticipated savings in labor, operational efficiencies, and shrinkage in their supply chain are merely deluding themselves. In fact, if a company does find significant opportunities in these areas, it means that gross inefficiencies exist in its operations, and that the company can achieve ma......

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In the early '80s, the introduction of concepts such as Single-Minute Exchange of Dies (SMED) allowed setup times on manufacturing operations to be drastically slashed (literally to minutes). This fundamentally redefined a core assumption (i.e., setup changeovers are time-consuming and expensive) on which the traditional EOQ and push-based production philosophy are based. The introduct......

Full article >>> ntory levels without hurting customer service levels. This opportunity to reduce inventory and, at the same time, improve customer service levels can be applied not only across multiple tiers in the supply chain, but also within a single store (backroom and on-shelf replenishment). For example, accurately knowing the on-shelf inventory of products will enable replenishment of the shelf stock in an......

Full article >>> able technology and hence significant benefits from RFID cannot be achieved until the technology matures further. Our research shows otherwise. Even without 100 percent readability, RFID deployment, when combined with appropriate changes in supply chain planning and execution processes and policies, can deliver superior supply chain performance.

Ultimately, my message is the following: If......

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Source:wistechnology.com By Raj Veeramani 07/22/05


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