The Impact of Automatic Identification on Supply Chain Operations

Automated Identification (Auto ID) applications can provide corporate information systems with the identity of each a physical item in the supply chain in an automated and timely manner. The real time availability of item identity allows other information, related to the item, to be drawn on in order to assess both the current state of the product and future actions required. In the context of supply chain operations, widespread introduction of such systems represents a major opportunity to overhaul and improve tracking and tracing systems, process control and inventory management. In the longer term, it is possible that Auto ID systems may enable a complete re-engineering of the supply chain, by removing a number of the constraints that limit today’s supply chain structures. This paper reviews some key challenges in supply chain operations today and introduces the main elements of an Auto ID system. Using a simple categorization of supply chain operations, areas for short term deployment of Auto ID are identified and opportunities for longer term re-engineering of different sections of the supply chain are highlighted.