Meeting the Needs of Small and Midsized Suppliers

By Steve Keifer

SMB RFID Solution Examples
Having thus defined the criteria for successful solutions, here are two potential RFID solutions for SMBs:

Warehouse Shipping Solution
This is a slap-and-ship solution designed for SMBs seeking to meet a large retailer's RFID mandate. An SMB supplier benefits from the use of RFID through reduced out-of-stocks at the retail location. A package might include a printer from Zebra, a handheld reader from Symbol or a fixed reader from Alien, as well as an RFID-shipping application that self-installs on any Windows-based PC. The software provides integrated support and preconfigured templates for EDI, data synchronization and labeling for such key retailers as Wal-Mart, Target Best Buy and Albertsons. The application is user-friendly, offering wizards to configure hardware devices automatically and connect to related business applications such as Intuit Quickbooks or Microsoft Dynamics.

To prepare a shipment, the system guides the user through a series of prompts. The operator keys the customer name, ship-to location, buyer's order number, transportation provider, bill-of-lading number and other information about the order directly into the application, or retrieves it from the relevant business application. Next, that person selects the products to be shipped. If the product is new or its packaging has changed, the system prompts the user to key in the appropriate item attributes. The system shares the updated product information with the retailer through 1SYNC data synchronization services, prints a shipment label with an UCC-128 industry-standard bar code and human-readable text and encodes the label's embedded RFID tag. The label is then applied to a pallet of goods to be delivered to the retailer.

As the shipment passes through the SMB's loading-dock door, a fixed reader identifies the pallet based upon the RFID tag. The read event triggers the creation of an electronic ASN, which the system transmits via EDI to the retailer. On-site installation of the RFID system, supplier certification and end-user training programs are available as up-front options. On-site, Web and phone-based technical support are available to the SMB for troubleshooting hardware or software problems. A 24-hour fix-or-replace program ensures continuity of operations, even in the event of a hardware failure.

Supply Chain Planning Solution
The second solution is a hosted, on-demand application for SMBs to analyze RFID data. The SMB can use the data to identify supply-chain inefficiencies, expose potential out-of-stocks and pinpoint causes of shrinkage. Instead of sending large files of RFID-related data to the SMB, retailers and logistics providers relay the information to a third-party on-demand service provider. The system parses the data for the customer and organizes it into meaningful reports for presentation via an on-line Web portal. The SMB pays only a monthly subscription fee to access the reports, with no additional software requirements.

The application provides a visual model of physical goods flowing through the supply chain. End-users click on icons representing distribution centers, transportation hubs and store locations to access more detailed information, such as throughput times and inventory levels. The system easily identifies and highlights supply-chain bottlenecks, enabling the redesign of distribution processes or replacement of underperforming transportation providers. Store-level RFID data provides insights into the SMB's marketing and sales personnel, while visibility to store-level RFID data offer the SMB insight regarding the root causes of out-of-stocks. In addition, the locations of cases and pallets of goods can be monitored for time-sensitive merchandise such as new-product introductions or promotions, enabling the SMB to work with the retailers to take corrective action.

Conclusion
Adoption of RFID by SMBs is a critical factor in the long-term success of RFID in the retail industry as a whole, yet many SMBs are not aware of the steps and precursors required for successful implementation and use. With so much focus on success factors for larger companies, SMBs are often left in the dark. Foundational elements such as EDI and bar-code labeling, data synchronization and business intelligence systems serve as steps and guidelines for SMBs seeking RFID success.

Steve Keifer is vice president of industry and product marketing at GXS, a global provider of business-to-business EDI and supply-chain integration, synchronization and collaboration solutions.