The case for manufacturing efficiency has never been more important than it is today. Manufacturers are faced with globalization, increased competition, and other economic pressures and must continuously look to drive "people" costs down, increase asset utilization, and reduce material costs, while at the same time address customers who are demanding faster delivery, better customer service, and customized products. Today's manufacturers are looking to RFID to address many of these challenges.
According to AMR Research, early adopters of RFID could cut supply chain costs by 3-5 percent and achieve a 2-7 percent increase in revenue thanks to the better inventory visibility that RFID provides. RFID can impact the entire manufacturing process from receiving raw goods to transferring or shipping finished products by improving inventory visibility to feed just-in-time systems, allowing manufacturers to make faster, better and smarter decisions.
RFID solutions can ultimately help manufacturers reduce operating costs by reducing labor costs, claims and returns, thereby increasing operating income. RFID can reduce working capital by enabling reductions in inventory and lowering inventory write-offs from unsaleables and returns. Manufacturers can also increase revenue by reducing inventory and retail out-of-stocks, improving promotional execution, shrink management, and forecast accuracy. On the shop fl oor, production time can be enhanced, as the flow of raw materials is better aligned to demand and build requirements. Product quality rises as line-sequencing and parts verifi cation applications are implemented, increasing customer satisfaction.
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Motorola Mfg.
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