By Fred Kuglin, Ray Hood
Since the tip of the tech bubble and September 11, the variety of leap forward applied sciences helping value chain management has elevated considerably, in particular these regarding sensors and instant. while those traits are mixed with the enormous shift in worldwide economies, the result's a brand new set of disciplines for international enterprise leaders.
Demonstrates How Connectivity Streamlines corporation Processes
This authoritative quantity illustrates how businesses, in the course of the implementation of web-based and safe monitoring applied sciences similar to RFID and instant sensors, can:
- Reduce costs
- Increase revenues via connectivity to consumers and markets
- Enable larger use of fastened assets
- Accelerate operating capital turns
- Enable acquisitions
Examines impression of monitoring know-how on international delivery, Pharmaceutical, and Agribusiness Industries
Using know-how to remodel the price Chain provides particular studies of present applied sciences and provide chain actions and areas specific emphasis at the wanted structure for the accelerating prolonged provide chain. as well as comparing the prices and advantages of satellite tv for pc communications, it additionally takes an in-depth examine how expertise is reworking agribusiness by way of bearing in mind extra effective monitoring of all cattle. the stairs defined during this seminal paintings support businesses safe their aggressive aspect and bring groundbreaking switch within the means the behavior business.
Read or Download Using Technology to Transform the Value Chain PDF
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Extra resources for Using Technology to Transform the Value Chain
In the Wal-Mart case the benefits clearly accrued were mostly to them. In fact, Wal-Mart’s warehouse labor savings alone, because RF tags (unlike barcodes) are “nonline of sight,” are worth hundreds of millions of dollars each year. The benefits to the suppliers, on the other hand, are harder to quantify and further in the future. This imbalance of benefits doomed this effort from the beginning. What were the alternatives? Existing barcode technology already in use for 30 years along with standards for barcode labels (Standard Shipping Container Code and Serialized Shipping Container Code, SSCC-14 and SSCC-18, respectively) could yield many of the benefits of RFID but were rarely fully utilized by the industry.
In a pharmaceutical or movie studio DVD warehouse, the automated pick lanes operate in number of items picked per second. It is not uncommon for a pharmaceutical warehouse (usually a third-party logistics provider or contracted manufacturer) to ship over 100 million “items” per year, or roughly 2 million per week. A 5% misread rate means that the warehouse personnel must deal with 100,000 misreads a week, or 20,000 per day! If they are only placing RFID tags on cases, then the number of misreads drops to a number from several hundred to a few thousand per day.
However, most CEOs and senior executives of consumer goods companies that have Wal-Mart as their customer are very close to Wal-Mart and its RFID program. In most cases, Wal-Mart is the “personal account” of the most senior executive. Senior executives are also highly skilled in analyzing the costs and benefits of new programs. For the majority of these CEOs, The Wall Street Journal article will not replace a positive or negative cost/benefit analysis for determining the adoption rate of RFID technology.