Application of RFID Technology in Reverse Logistics, Essay Example

Problem

Reverse logistics is one of the most challenging aspects of the supply chain. While forward logistics is usually an orderly process, reverse logistics is quite cumbersome and considerably drives the costs of the supply chain upwards. Managers repeatedly encounter the constant challenge of ensuring mitigated costs that result from the process of reverse logistics. Furthermore, this process is usually considerably disorganized when compared to forward logistics. Four problems characterize reverse logistics; 1) tracking value, 2) tracking warranty and routing status, 3) handling dealers and contractors, and 4) driving efficiency in the repair process.

Solution

The proposed solution to the four problems of reverse psychology entails the application of RFID technology in the reverse logistics process. The solution will also include the development of a system architecture that is capable of on integrating RFID technology into existing reverse logistics systems for businesses. RFID technology has increasingly been used in the past five years in many facets of logistics, recording positive trends in performance for most organizations or businesses.

The introduction of technology such as RFID technology has become integral in monitoring all procedures and processes. However, such technology comes at considerable costs. It requires upgrading and/or replacing existing systems. These increase in costs has become a problem for TLM as companies continue to drive towards the mitigation of costs and maximization of revenue and profits.

Thesis

The ability to track and monitor goods encompasses the four problems of reverse logistics. The application of RFID technology in reverse logistics has the potential to track value, warranty and routing status, handle dealers and contractors and drive efficiency in the repair process.

Portals

Three portals were useful in the search for literature about the applications of RFID technology and the four problems of reverse logistics. They Include;

• Directory of Open Access Journals: https://doaj.org/
• IR and Security Network (ISN): http://www.isn.ethz.ch/
• Social Science Research Network: ssrn.com/

Works Cited

Bonev, Martin. Managing reverse logistics using system dynamics : a generic end-to-end approach. Hamburg: Diplomica Verlag, 2012. Print.

Lee, In. RFID technology integration for business performance improvement. Hershey: Business Science Reference, 2015. Print.