RFID and Supply Chain Management for Manufacturing Digital Enterprise

Abstract

In the modern, complex and dynamic business environment due to continuously shortening product life-cycles, higher variety and increased outsourcing activity, with increasing globalisation and digitalisation and with a rapid development of information and communication technologies (ICT), manufacturing enterprises have to improve their competitiveness by quickly responding to the changing customers and business partners demands. In order to be competitive, manufacturing enterprises must implement technologies such as enterprise resource planning systems (ERP) and radio frequency identification (RFID) technology to improve operational efficiencies and establish better relationship with their business partners. Enterprises have to integrate information and communications technologies to improve internal processes (within the enterprise) and external processes (with business partners in the supply chain).The aim of this chapter is to review the literature on RFID to gain a clearer insight to RFID technology trends and applications, especially for manufacturing digital enterprise and supply chain management through increased supply chain visibility at all stages of the process. This chapter focuses on information visibility and information sharing by usage of RFID technology and integration of RFID technology with Croatian solution of ERP system in the digital enterprise. The objective is to enable real-time status information about material, products, workers and other resources needed for management decisions, in context of hierarchical planning and scheduling and just in time principles. The system should enhance the visibility of information and material flows in the internal as well as external supply chain integration with objective to ensure timely and effective access to information and timely response to demand, to achieve production, supply and marketing coordination to satisfy customer requirements. Thus a more effective and efficient business processes and real-time information for management support in digital enterprise should be attained.