Solutions Overview

Whereas RFID for the supply chain is only deployed on-premises, RFID for the demand chain is deployed both on- and off- premises. When inventory is on-premises (eg, a factory), the RFID system leverages the local IT infrastructure because it is owned by the enterprise deploying RFID. When inventory moves off-premises (eg, in the field or to a customer site), the RFID system has little or no IT infrastructure to leverage. As a result, there are limitations in computing power, storage capacity, as well as network availability and bandwidth.

RFID for the demand chain must be designed from the ground up to be intelligent and lightweight for off-premises use in addition to being fast and scalable for on-premises use. A RFID application specifically built to leverage both mobile and web services based architectures provides the best solution for demand chain optimization, as it can fulfill use cases which have both on- and off- premises requirements. 

Demand chain RFID provides real-time, highly accurate inventory visibility enabling the following improvements in sales and operations:

• Shorter more accurate cycle-counts
• Reduced out-of-stocks
• Improved merchandising effectiveness
• Improved service level attainment
• Higher inventory turns
• Reduced product loss
• Improved route optimization
• Expired product removal
• Shorter invoice-to-cash cycles

As evidenced by RFID deployment at Walmart, Target, and the U.S. Department of Defense, RFID has proven to be an effective technology for allowing companies to track inventory in the supply chain from the point of receipt back to suppliers. RFID is also proving to be an equally, if not more, effective technology for allowing manufacturers and distributors to track inventory through the demand chain, as it moves from the factory and/or distribution center through the field to customer sites.