1. Professional Practices
RFID APPLICATION
IN
SUPPLY CHAIN MANAGEMENT
AND
VISUAL MERCHANDISING
Presented By:
Mohnish Madkaikar
Deeshikha Parashar
MFT - 1

2. WHAT IS RFID?
 Radio-frequency identification (RFID) is the use of an object
applied to or incorporated into a product for the purpose of
identification and tracking using radio waves. It is one of the AIDC (
Automated Identification and Data Collection ) system
RFID tags contain following parts:
 One is an integrated circuit for storing and processing information,
modulating and demodulating a radio-frequency signal.
 The second is an antenna for receiving and transmitting the signal.

3. RFID TAGS

4. TYPES OF RFID TAGS
There are generally three types of RFID tags:
 Active RFID tags
 Passive RFID tags
 Battery assisted passive (BAP)
Varying levels of radio frequency give rise to different kinds of
RFID tags
 Low frequency tags (125 – 134 Khz)
 High frequency tags (13.56 MHz)
 UHF tags (868 - 956 MHz)
 Microwave tags (2.45 GHz)

5. SUPPLY CHAIN MANAGEMENT
It refers to the network of organizations that are
involved, through upstream and downstream linkages, in the
different processes and activities that produce value in the
form of products and services in the eyes of the ultimate
consumer
Supply Chain Management (SCM), then, is the effort to
optimize these contributions and interactions

6. APPAREL SUPPLY CHAIN

7. WHY RFID ?
 RFID tags reduces total costs for labour and
inventory while increasing accuracy.
RFID is ideally suited for situations when you need to:
 Identify many items at once
 Identify items where line of site requirements is
highly distributed
 Find items quickly
 Identify items even when no human is present (or
that human doesn’t follow standard policies)

8. WHAT CAN RFID DO ?
 Improve Supply Chain Visibility
 End-to-End Process Integration
 Eliminate Artificial Uncertainty and Reduce Natural
Uncertainty
 Improve Supply Chain Measurement and Benchmarking
Capabilities
 Enhance Collaboration with Trading Partners
 Optimize Reverse Logistics

9. RFID AND INVENTORY MANAGEMENT
 Automatic Product Receiving
 Automatic Self-Checkout
 Directed Put-away
 Anti-theft/Shrink Systems
 Automated Shipping
Operations  Returns/Warranty
Authentication
 Smart Shelves
 Product Recall Management
 Product Freshness
Management  Continuous/Real-Time On-
Hand Inventory Counts
 Enhanced Point-of-Sale
Processing  Intelligent Products

10. ITEM LEVEL RETAIL TRACKING

12. RFID INCORPORATED VISUAL MERCHANDISING
 Visual Merchandising is a very
powerful tool that can be effectively
used to program, channel, and lure
customer into impulsive buying.
 Paxar Corporation showcased its
magic-mirror "smart mirror“
 Magic-mirror provides retailers with
a means to reach customers on an
'emotional' level and positively
influence purchase decisions at the
moment of choice.

13. PRIVACY RELATED ISSUES
 Privacy related issues associated with the use of RFID
technology were identified by FTC , which should come under
Fair Information Practices
 As technology to enable large-scale collection and use of
personal information has evolved, and awareness of the
potential for misuse of that information has grown

14. PRIVACY RELATED ISSUES
 Consumers may not be aware that their product or its packaging are
tagged
 Tags, even if disclosed, may be non-removable
 Consumers may not be aware of locations of readers
 Item-level tags may be used to establish an individual’s presence at
a specific place and time, or track a person’s movements
 Tags may be read by those other than intended, i.e. hackers
 Combinations of tags could be used to uniquely identify individuals

15. PRIVACY RELATED ISSUES
 Tags and loyalty programs could be combined to embed
personal identify information in tags
 Marketers may target individuals based on tagged items not
necessarily purchased but merely carried into range of a
reader
 There are no privacy regulations in place to guide RFID tag
use

16. CONCLUSION
 Globalization, competition, and increasingly sophisticated and
informed customers are creating ever greater supply chain
challenges for today’s businesses
 RFID provides clear benefits throughout a supply chain, with
distinct implications at different level.
 Better availability and management of inventory provides
immediate efficiencies and the ability to streamline

17. REFERENCES
• www.fibre2fashion.com
• www.rfidjournal.com
• www.scmnews.com
• www.infosys.com
• www.apparelmag.com
• Landt, Jerry (2001). "Shrouds of Time: The history of
RFID
• Rahman, Rohisyam (2007-07-23). “Case Study:
Malaysian Smart Shelf”
• Fashion Retail – Curtis
• Inside fashion Business – Kitty G. Dickerson
• Fashion Retailing - Ellen Diamond