Implementation of Supply Chain Management

1. RFID and barcode functionality

A printed barcode could be associated with an item. A barcode reader would scan an item’s barcode relayed it to a computer; the associated item with this barcode would be retrieved from database.

A passive RFID tag is a special chip with unique ID, which could be scanned and picked up by a passive RFID reader's antenna. The range of passive RFID antenna is typically less than a meter. Passive RFID tag has an issue with a box of metallic items, because those items interfered/obstructed the communication between the passive RFID antenna and the passive RFID tag.

An active RFID tag is a special chip with unique ID powered with battery, which could emit signals with data and picked up by an active RFID reader's antenna. The range of an active RFID antenna is typically a few meters.

Passive RFID reader could read the unique ID of a passive RFID tag. The passive RFID reader could be connected to a computer network. Thus information could be recorded in database. A software application could be developed to handle data read by a reader.

The same configuration to a passive RFID reader is applicable to an active RFID reader for an active RFID tag.

2. Packaging process before shipping in a container

Figure 1. Packaging process and positions of active RFID antennae

-         Each item would be associated with a barcode on its packaging.

-         Each item would be scanned and placed in a box, which is associated with a unique passive RFID tag.

-         After the box is full, the box would be taped. The number of items loaded in this box has been recorded in database. By scanning this passive RFID tag, we could load all items stored in this box as those was associated with this tag from database.

Instead of a passive RFID tag, we could use a unique barcode to link all items in a box with this barcode.

-         All boxes would be loaded on a pallet, which is associated with a unique active RFID tag. The number of boxes loaded will be scanned during loading process, thus we have the total number of boxes on a pallet as well as items loaded.

-         Each recorded pallet would be scanned by an active RFID antenna, and loaded into a container. This container must be uniquely identified by a unique barcode, unique active RFID tag, or a wireless modem. A passive RFID tag attached to a container wouldn’t work, if the container is metallic.

With wireless modem, we could track the container’s movement by using the mobile telephony network, but this option is expensive.

This inventory warehouse could be a large manufacturing plant producing items packed in each box.

3. Managing incoming or outgoing pallets in/out a warehouse

The communication range of an active antenna and its tags is around a couple of meters, thus the entrance and exit doors must be far apart. This would prevent picking up wrong signals for incoming or outgoing pallets.

The area around an active RFID antenna must be also clear of pallets. The active antenna should only pick up signals of an active RFID tag leaving or entering the warehouse.

When a pallet entered the entrance, the active RFID antenna would pick up the ID of the unique RFID tag, thus we could tell the number of boxes as well as all items on this pallet. These items could be loaded into the inventory database at receiver’s end.

When a pallet left the exit, the active RFID antenna would pick up the ID of the unique RFID tag, thus we could tell the number of boxes as well as all items on this pallet. These items would be removed from the inventory database at the shipping’s end.

4. Receiving and unpacking process

At the other end, the container arrived would be scanned its unique barcode, unique active RFID tag, or wireless modem.

We could link to the database of the “packaging source” to retrieve data about all pallets, boxes, and items loaded in this container.

Similarly, by scanning the pallet’s unique active RFID tag we could tell number of boxes and items loaded.

By scanning a box’s unique passive RFID tag or unique barcode we could tell number of items packed.

Those items would be loaded or added into the inventory database of the receiver.

5. Retailer’s process

If the receiver is a retailer, they could deduct each item sold in the database by scanning its barcode. If the number of remaining items was less than a threshold, a message would be sent to a manager to trigger a replenishing process.

6. Clarification

The process above was to describe how to associate a container to pallets, boxes, and items in each box. The receiver could easily retrieve data or items shipped in a container from a shipping source using an application on a computer network.

In a manufacturing plant setting, the assembly line could be automated or robotized; therefore any implementer of this supply chain management process must study the assembly line in order to add in “labels” (barcode, passive RFID tag, or active RFID tag) appropriately. It is unlikely that a manufacturer would scrap their entire automated assembly chain in order to implement this supply chain management, i.e. minimum changes must be proposed to the manufacturer.

Software application could be developed in order to handle items shipped or to control all shipments automatically at the shipper site. The receiving site software is to handle items received, etc. If they wanted to link all items to an invoice or payment process, it could also be done.