The Role of RFID within EDI: Building a Competitive Advantage in the Supply Chain

Abstract

Radio frequency identification provides the services to gather and process product data at a rate that is unprecedented. When integrated as a component of electronic data interchange it can be a powerful resource to those that harness its potential. Unlike the profit-driven retail industry the underlying supply chain revolves around meeting service levels and reducing costs at the bottom line. Operating costs are either incurred or reduced according to how efficiently inventory is moved. Limited visibility and lack of flexibility are often factors which cause opportunities for time reduction across the pipeline to go unrecognized. The services gained through integration of RFID contributes to better pipeline management, visibility, improved forecasting, flexibility and bottom line reduction thus providing the means to gain a competitive advantage. RFID is both flexible and scalable and can therefore be implemented and integrated according to needs of the user. RFID is also a subset radio frequency technology which enables smart shelves and environment sensors. By creating a ubiquitous data gathering environment, which can be in close proximity to consumers, it simultaneously taps the need for data management, data sharing relationships and concerns over customer privacy