Automatic Identification of an inventory means using computerized system to identify the data into the inventory list or items. Out of this, it means that the system is manual.
In automatic ID, the data can be obtained continuously and thus they are more up-to-date then data obtained only at specific intervals (like inventory counts) and specific pointsin the supply chain (like shipping or receiving).
Not involving a human in the process means that the readings can be less expensive and generally more accurate – incremental readings are virtually cost free once the system has been set. It also means that there may be fewer misreads.
Speed – many tags can be read simultaneously into a computer, rather than reading a single tag at a time.
The content of various conveyances (such as trailers, cases, pallets, shopping carts) can be read automatically without opening and sorting the conveyance.
Bar codes do not work well when exposed to weather elements, when dirty, or if damaged in any way that interferes with clear line-of-sight reading.
Location – RFID readers can provide rough location information, particularly when the goods being scanned are moving relative to the reader.
Labor costs can be reduced through automating the checkout counters, reading the content of a whole shopping cart at a time. In the short term, replacing bar code scanning systems with RFID based system can lead to more accurate and speedy checking out processes. In the longer term, by using “smart” shopping carts consumers can have a running total of their purchases, going through checkout procedures with no queuing.
Efficiency - The central functions of a warehouse are to put items away and then retrieve them efficiently. One of the immediate benefits of Auto ID systems in the warehouse will be the tracking of constant inventory levels in real time, or “always on” inventory count, leading to more efficient and accurate picking and packing operations.
Reach - Auto ID information can enable by “virtual inventory networks” in which inventory can be retained and accessed anywhere that is convenient – instorage, on the move, in stock rooms, etc. While many order fulfillment systems use this capability already – querying other warehouses if an ordered item is not available locally – this capability would become more seamless, and be extended to querying all locations such as other outlets or transportation links.
Productivity - Some systems, such as “pick to light,” try to get workers’ attention to where the items are and direct their search centrally. With Auto ID workers can find where items are via a message on a local device, such as a personal digital assistant. Using such system, workers can manage their tasks individually, allowing real time events to influence their own work and re-optimize it without impeding others.
Accuracy – More and more warehouses are operated like distribution centers where the flow in and out is continuous. In many cases such facilities are used for cross-dock operations, where shipments from manufacturers are broken down and reassembled into shipments into individual stores. Auto ID systems can ensure that the right shipments get routed from the inbound to the outbound facilities, performing the necessary checks regarding shipment content automatically and continuously.
REFERENCE
The Impact of Automatic Identification on Supply Chain Operationsby Duncan McFarlane Research Director Auto ID Center-Cambridge Laboratory Institute for Manufacturing Cambridge University Engineering Department And Yossi Sheffi Professor of Engineering Systems Professor of Civil and Environmental Engineering Co-director, MIT Center for Transportation and Logistics Massachusetts Institute of Technology.
