RFID And Logistics Management

Logistics assets that have a circular flow are an essential part of the distribution network of any business. These assets are often reusable such as totes, racks, bins and roll cages, shipping containers, gas containers etc. used to transport goods from one place to another. Procuring, maintaining and managing these assets often forms a significant part of a company?s annual expenses. Since theft, damage and replacement erode asset productivity, these assets have to be managed in such a way as to minimize loss as possible. That is when RFID (Radio Frequency Identification Devices) and logistics management comes into effect.

Using RFID to Manage Assets:

Businesses have resorted to using radio frequency identification devices come in handy. These devices or tags are helpful in locating these reusable assets as well as have control over them. This greatly reduces loss due to theft as well as misplacements. It is also useful in locating particular containers containing specific products etc. Their use has greatly reduced costs such as replacement costs as well as avoiding shrinkage. It has also helped reduce capital costs, increase customer satisfaction, as well as ensuring the assets are in the correct place at the right time. An added advantage is the reusability of these tags, so companies, which want greater control over assets and their management, have opted to use RFID and logistics management techniques. Using RFID and logistics management strategies will serve to improve capital utilization lower the total operational costs as well as improve the availability of assets. The use of these asset management techniques has improved customer retention significantly. This technique will help improve visibility of assets in transit, availability management of much needed assets, transportation management etc. these techniques have to be reviewed periodically to ascertain if they have effected a significant change as also to take necessary action where required.

The use of RFID and logistic management techniques are especially useful for manufacturers, where parts bins feed parts in an automated plant, since the placement of the right part in the right place is critical. The company can use these techniques in areas where they have expertise whereas professional help can be sought for areas where they lack control such as transportation, delivery, pick up etc.

Companies should consider implementing RFID and logistics management techniques, as they will greatly benefit from it. It will reduce cost, increase control and availability, decrease chances of loss of assets due to various factors as well as prove to be very economical. Most of them are currently using manual techniques, which is not as efficient as RFID. They have to understand that asset management will be a key factor in improving customer satisfaction as well as help in customer retention.

Many firms offer professional help as well as products to run a business efficiently and effectively.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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RFID Tags

When RFID tags started gaining popularity the general view was that they would revolutionize the world and the industry. However, it did not happen and people were not so fast to accept RFID technology and its advantages. Nonetheless. RFID technology has evolved and new advances in this industry have been made.

The RFID industry is designing better systems and tags while ensuring the cost factor for both active and passive RFID tags reduce. It is a lot cheaper today to take advantage of RFID technology than it was ten years ago. The RFID tags have become smaller in size and have better batteries.

However, RFID technology is still a long way from taking the world by storm. If we take RFID tag use in Wal-Mart, one will realize that this giant uses it minimally. While Gillette?s dream for distribution and robotic factories has not been realized. Still, Gillette and the US military are taking this technology seriously and trying to find ways of using it better and more effectively.

The real challenge for the RFID industry, many say, could be the inability of the industry to produce the tags and readers cheaply and quickly on labels. If this can be done, then it would bring the RFID tags and readers at level with the bar code industry and will enable the retail industry to effectively use this technology. At the moment RFID technology is more popular with shipping and transporting companies to keep a track on consignment.

With companies like Horizon Components who have taken the RFID technology beyond the realms of shipping and transporting companies, the future for RFID technology is bright and optimistic. It will be real soon when we see this technology being a part of our day to day life.

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Nissan Chooses WhereNet Locatable Active RFID System

Nissan North America, Inc. announced earlier that it will be using WhereNet Locatable real-time locating system (RTLS) technology to automate both its inbound supply chain and outbound delivery chain.

The automaker partners with WhereNet Corp., a leader of wireless solutions, to strengthen continuous improvement initiative at its four-million square foot assembly plant in Canton, Mississippi. Said partnership is aimed at improving the North American vehicle production, labor productivity, and auto parts Nissan quality.

"Amidst soaring demand and several new model introductions each year, the WhereNet system gives Nissan the agility to manage its inbound supply chain on a just-in-time basis to support flexible manufacturing processes. In addition, WhereNet assists on the outbound side by automating predelivery processes to bring more new vehicles to the marketplace faster," said Chantal Polsonetti, vice president of manufacturing advisory services for ARC Advisory Group.

The Canton assembly plant of the automaker is capable of producing 400,000 vehicles annually. It assembles Nissan Maxima auto parts and other significant vehicles of the automaker. Nissan Altima sedan, Armada and Infiniti QX56 SUVs, Quest minivan, and Titan full-size pickup truck are also produced in said plant.

"As one of the most efficient vehicle manufacturers in North America -- according to the 2006 Harbour Report -- Nissan is setting the standard for manufacturing by embracing new technologies like WhereNet to continuously improve processes," said Tom Bacon, vice president of the automotive division for WhereNet. "WhereNet's locatable active RFID system provides a critical foundation for flexible manufacturing as it enables automakers to manage multiple models with meticulous precision, ensuring that the right part is delivered to the assembly line just in time. In addition to helping manufacturers maintain a lean inbound supply chain, WhereNet also drives efficiency on the outbound side, accelerating delivery of new vehicles to dealers through our industry-first, automated VTMS solution."

In the partnership with WhereNet, Nissan also expects to reduce labor cost, on-site dwell time for parts and vehicles, improve responsiveness to customers, and to produce high-quality vehicles as ensured by the system. This is because the system also immediately detects quality defects in vehicles hence; rework costs will be prevented.

As a manager of one of the largest auto store in Springfield,Massachusetts, Sarah has extensive expertise on auto parts and automotives in general. This 42 year old is a certified car enthusiast.