Future of Sourcing - RFID Technology https://futureofsourcing.com/tags/rfid-technology en The Technologies Driving ESG-focused Supply Chains https://futureofsourcing.com/the-technologies-driving-esg-focused-supply-chains <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/The%20Technologies%20Driving%20ESG-focused%20Supply%20Chains_0.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/The%20Technologies%20Driving%20ESG-focused%20Supply%20Chains_0.jpg" title="The supply chain is increasingly considered to be one of the most impactful components of a company’s sustainability efforts." class="colorbox" rel="gallery-node-2095-vcdiAKMTZ2o"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/The%20Technologies%20Driving%20ESG-focused%20Supply%20Chains_0.jpg?itok=krrOxYol" width="624" height="325" alt="The supply chain is increasingly considered to be one of the most impactful components of a company’s sustainability efforts." title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/why-transparency-matters-to-us-all">Why Transparency Matters to Us All</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Over the past year I&rsquo;ve had the chance to speak to a variety of senior business and sustainability leaders about supply chain topics and their implications on a range of ESG issues. What is apparent from these conversations is that the supply chain is increasingly considered to be one of the most impactful components of a company&rsquo;s sustainability efforts.</p> <p>This trend is also echoed by the findings revealed at the <a href="https://unglobalcompact.org/library/5895" target="_blank">UN Global Compact Leaders&rsquo; Summit</a>, which showed that 50% of companies globally say that supply chain sustainability has grown in importance since the start of the COVID-19 pandemic.</p> <p>Perhaps not surprising when we consider increased public attention following high profile incidents, from poor labor conditions at multiple large manufacturing facilities to a Greenpeace petition to end unsold goods being destroyed. Consumer, investor and shareholder pressure is mounting, and so too is regulatory pressure.&nbsp;</p> <p>The UK&rsquo;s Competition and Markets Authority has just launched the <a href="https://www.gov.uk/government/news/greenwashing-cma-puts-businesses-on-notice" target="_blank">Green Claims Code</a> to help businesses understand how to communicate their green credentials while reducing the risk of misleading shoppers. In Germany, a new <a href="https://www.bmas.de/EN/Services/Press/recent-publications/2021/act-on-corporate-due-diligence-in-supply-chains.html" target="_blank">legislation on corporate due diligence</a> in supply chains &nbsp;requires large businesses to prevent human rights and environmental abuses within their global supply chains, with fines of up to 2% of annual turnover for breaching the rules.</p> <h2>Decarbonizing the Supply Chain</h2> <p>The focus on supply chain issues will only intensify, and the expectation from leaders to familiarize themselves with how their companies are managing their supply chains across first-tier and lower-tier suppliers is not going away.</p> <p>To help navigate this new business paradigm, here are five key strategies to consider:</p> <p><strong><em>Focus on Transparency &ndash; </em></strong>Modern-day supply chains are a complex web, which means there are often many knowledge gaps in information flow. For many companies, the pandemic revealed a worrisome lack of full visibility into their supply chains and exposed poor practices. It&rsquo;s important to identify your operational weaknesses among first-, second- and third-tier suppliers to ensure proper oversight and management of supply chains.</p> <p><strong><em>Digitize at Speed and Scale</em></strong> &ndash; Now is the time for bold moves and the adoption of emerging digital technologies to digitize supply chains at scale. RFID (radio frequency identification) technology can bring inventory accuracy up to 99%, increasing the speed of everyday processes and reducing problems with inventory, stock shortages and waste. In the apparel industry alone, RFID has <a href="https://www.researchgate.net/publication/330214057_Measuring_the_Impact_of_RFID_in_Retailing_Keys_Lessons_from_10_Case-study_Companies/link/5c3466c7458515a4c71532c8/download" target="_blank">proven to</a><a href="https://www.researchgate.net/publication/330214057_Measuring_the_Impact_of_RFID_in_Retailing_Keys_Lessons_from_10_Case-study_Companies/link/5c3466c7458515a4c71532c8/download" target="_blank"> reduce apparel inventories</a> by 2% to 13% while at the same time providing a sales lift of 1.5% to 5.5%.</p> <p><strong><em>Invest for Business Value</em></strong><strong><em> &ndash; </em></strong>To unlock the power of digital transformation it must be embedded in a company&rsquo;s digital strategy with clear financial and operational-performance metrics in place. Alignment with real business needs and your sustainability strategy will ensure adoption across your organization.</p> <p>Technological investment will be crucial to building ESG-focused supply chains. In one survey, 77% of business leaders listed environmental sensors and the Internet of Things as important to meeting their sustainability goals, and in another, more than one-fifth said they had accelerated their digitalization plans by three years (source: Cognizant).</p> <p><strong><em>Omnichannel Oversight</em></strong><strong><em> &ndash; </em></strong>Avery Dennison&rsquo;s <a href="https://indd.adobe.com/view/fb3a0399-c287-4f41-ab9c-aecb574e0cf5" target="_blank">Regenerative Retail Economy</a> report examines the shopping habits that grew during lockdown such as Buy Online Pick-up In-Store (BOPIS) and curbside delivery, as well as the predicted growth of e-commerce over the next few years. To adapt to these trends, businesses will need to implement a hybrid, omnichannel experience and look to digital solutions to give them greater oversight of their stock and improve efficiency and access to information. Being able to RFID-tag items and get data about exactly what you have in stock and where allows a lot more flexibility and knowledge about your supply chain, which in turn eliminates overstocking and overproduction.</p> <p>One brand getting very creative with RFID technology is Etam, the number one lingerie brand in France. With 1,200 new lines every season the brand uses RFID to move fast, with a specific &ldquo;Order Management System&#39;&#39; providing a global vision of stock, whatever the location. This includes RFID and QR coded hangtags to digitize the whole value chain and processes, along with vendor shipments, store inventory accuracy, self-check-outs, returns or reverse logistics, e-commerce and the retailer&rsquo;s <a href="mailto:Try@home">Try@home</a> initiative.</p> <p><strong><em>Understand Supply Chain Decarbonization &ndash; </em></strong>To meet the urgency of curbing climate change, it is critical that businesses act to eliminate greenhouse gas (GHG) emissions. Supply chains represent a great opportunity to decarbonize and meet net-zero pledges and the technology that is needed to significantly reduce emissions is readily available.</p> <p>Avery Dennison&rsquo;s <a href="https://www.atma.io/" target="_blank">atma.io</a> enables brands across apparel, beauty, food and healthcare to give every product a digital ID which is connected to the cloud. This means it can be traced along the supply chain and enables businesses to determine the carbon cost of each product, from manufacturer to store shelf. For example, one major sports retailer is piloting atma.io to trace the carbon footprint of its raw materials. When we consider industries such as logistics and transport, or food supply chains which account for 26% of all GHG emissions, the possibilities are huge and the supply chain&rsquo;s role in decarbonization could be an absolute game-changer.</p> <p>Forward-thinking leaders know that it&rsquo;s no longer enough to dip their toes in the waters of digitization, what&rsquo;s needed is a systemic transformation of supply chains if we want business and the planet to thrive. I am both confident and hopeful that we will see increased momentum in the coming months as regulatory, commercial and consumer pressure mounts.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/avery-dennison" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Avery Dennison</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/environmental-and-social-governance-esg-0" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Environmental and social governance (ESG)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/rfid-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">RFID Technology</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Technologies Driving ESG-focused Supply Chains - Future of Sourcing" addthis:url="https://futureofsourcing.com/the-technologies-driving-esg-focused-supply-chains"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 14 Dec 2021 17:00:00 +0000 Francisco Melo 2095 at https://futureofsourcing.com https://futureofsourcing.com/the-technologies-driving-esg-focused-supply-chains#comments What is on the Horizon for Micro Fulfillment Centers? https://futureofsourcing.com/what-is-on-the-horizon-for-micro-fulfillment-centers <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/What%20is%20on%20the%20Horizon%20for%20Micro%20Fulfillment%20Centers%3F.png"><a href="https://futureofsourcing.com/sites/default/files/articles/What%20is%20on%20the%20Horizon%20for%20Micro%20Fulfillment%20Centers%3F.png" title="What is on the Horizon for Micro Fulfillment Centers?" class="colorbox" rel="gallery-node-2068-vcdiAKMTZ2o"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/What%20is%20on%20the%20Horizon%20for%20Micro%20Fulfillment%20Centers%3F.png?itok=k8gLr4Wr" width="624" height="325" alt="What is on the Horizon for Micro Fulfillment Centers?" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>What is on the Horizon for Micro Fulfillment Centers?</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-supply-chain-flexibility-will-meet-an-uncertain-future">How Supply Chain Flexibility Will Meet an Uncertain Future</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>As we are hopefully moving beyond the pandemic, one positive trend that began during the height of 2020 supply chain upheavals was the emergence of the Micro Fulfillment Center (MFC). Supply chains made swift seismic shifts to accommodate new business models during pandemic and have gained a new attitude toward flexibility and fixing what remains broken. Technology exists to accomplish additional changes that will help manufacturers, brands, retailers, and supply chains meet a new and uncertain future.</p> <h2>The Decline of the Mall</h2> <p>A report done by Credit Suisse in 2017 estimated that by 2022, 20% to 25% of&nbsp;malls&nbsp;would be shuttered. By 2019, retailers had already announced more than 8,600 store&nbsp;closures and when COVID-19 hit in 2020, that number escalated exponentially. Retailers in every category have either disappeared or become shadows of their former powerful brick-and-mortar selves.</p> <p>There is hope on the horizon as savvy retailers begin to breathe new life into their brands &ndash; and storefronts - by turning mall stores into Showcase Centers.</p> <p>The mall of the future may look very different to consumers and retailers. Giant anchor department stores and branded shops will give way to Showcase Centers. These stores may have one of each item in a range of sizes for customers to select. Although it may take a few beats for consumers to get used to not getting the item to take home, they will instead have an easy opportunity to visit a nearby MFC to pick up their item. MFCs located nearby the Showcase Center may even ship the item directly to the customer, perhaps even the same day &ndash; given their shortened last mile.</p> <h2>The MFC of the Future</h2> <p>The MFC in retail environments is already a reality and supply chain managers need to keep it top-of-mind because COVID accelerated the trend. Retailers have resources to make simple changes and will immediately benefit from moving away from doing fulfillment in their stores. They also have options: set up their own MFC or contract with an MFC company that has an operation in proximity to the store location and has the technology to handle the retailer&rsquo;s inventory and fulfillment.&nbsp;</p> <p>An automated, hyperlocal MFC has a unique ability to lower e-commerce costs for retailers by reducing such costs related to storage, retrieval and picking, as well as last mile delivery and real estate.</p> <h2>Automating the MFC</h2> <p>The key benefit of MFCs is that automation can be accomplished at the end of the supply chain, and this can be done seamlessly by deploying with RFID technology. Put simply, MFC processes focus on the basic metric, &ldquo;do I have the right product to fill that order?&rdquo; Whether by a person, via a bar code or utilizing vision automation, there is always a stop that must occur to answer that question. RFID automatically verifies having the right product for the right order without necessitating that stop.</p> <p>Automation with RFID also solves front end replenishment problems. The fact is replenishment of items from the manufacturer or local Distribution Center can still be manual today. However, widely used technology like RFID can unlock an automated mechanism to pick items from a warehouse and &ldquo;follow&rdquo; it through to the MFC and ultimately, the customer.</p> <h2>Implementing a Total Supply Chain Solution</h2> <p>An end-to-end RFID solution addresses the number-one challenge of knowing where every product is physically located, at every point of the entire supply chain.&nbsp; The industry understands RFID solves the visibility problem in inventory, whether in stores, in a Distribution Center or through a contract with an MFC.</p> <p>The language of supply chains is changing, and there is new focus on what the industry calls &ldquo;Interpretation Tools.&rdquo; In an RFID Solution, these tools encompass:</p> <ul> <li>RFID labels to tag products at the item, case and/or pallet levels</li> <li>RFID readers such as tunnels, chambers, portals, undermounts, overheads and handhelds</li> <li>Software systems that enable product data capture, interpretation, storage, sharing and connectivity (MFCs are likely to have systems in place that are adaptable to read RFID tags)&nbsp;</li> </ul> <h2>Key Advantages of RFID in MFCs</h2> <p>RFID optimizes fulfillment for the retailer and is essential to meet omnichannel demands for localized distribution in e-commerce. The advantages of employing RFID in MFCs are significant, allowing accuracy, immediacy and speed for localized distribution. Importantly, an RFID solution eliminates the need to validate orders through legacy processes, because RFID automates those processes. The best news is that with RFID, decentralized MFC distribution and last mile processes generated by the retailer, same day delivery becomes an achievable goal.</p> <p>RFID in the MFC also supports sustainability goals. Less distance travelled in the last mile requires less gas, and by reducing error, necessitates fewer returns, which in turn means less use of fuel, paper boxes and other resources.</p> <h2>What&rsquo;s Next for MFCs</h2> <p>Get ready to see more and more MFCs in locations where customers are likely to reside. As e-commerce continues to take on a more central role for consumers, retailers will be tasked with shipping to customers&rsquo; homes or opening MFCs that are convenient to customers. As MFCs gain importance in the omnichannel race to retain customers, a total RFID Solution will get retailers across the finish line.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/micro-fulfillment-centers" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Micro Fulfillment Centers</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/avery-dennison" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Avery Dennison</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/rfid-technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">RFID Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/e-commerce" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">E-commerce</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="What is on the Horizon for Micro Fulfillment Centers? - Future of Sourcing" addthis:url="https://futureofsourcing.com/what-is-on-the-horizon-for-micro-fulfillment-centers"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 15 Oct 2021 02:00:00 +0000 Ryan Yost 2068 at https://futureofsourcing.com https://futureofsourcing.com/what-is-on-the-horizon-for-micro-fulfillment-centers#comments