China Investigation Report on the application of AUTO-ID: Wang Junyu Min Hao Zhou Feng Wang Tianyang (Fudan University Auto-ID Labs) | Views: 21 Source: Automatic Identification Technology and Application: 2005 at 13:43 on January 11
I. Foreword With the increasing economic globalization of economic globalization and competition from international peers, Chinese companies have become more and more attention to improving their supply chains. Although Auto-ID technology is more unfamiliar for most Chinese companies, they all urgently need a new technique to establish a low-cost, high efficiency, adaptive and visibility supply chain. As China has gradually become the fastest growing and most promising international market, the above technology will have excellent application prospects in China. In August 2003, the SAP China Research Center and the AUTO-ID laboratory of Fudan University had a targeted investigation in China's application status in China. The survey target is a CIO and IT manager located in China, and the number of samples is 200. The survey questionnaire involves the following: Current data input and single product tracking method; understanding of RFID technology; planning to apply RFID field; accepting the main problems facing RFID technology; implementing RFID schedule. Although RFID technology is still in its infancy in China, we still receive 52 accompanying questionnaires and a lot of valuable feedback. Based on the above-mentioned survey, our way of survey results and China's application RFID technology is summarized below. Second, the findings (1) The purpose of the currently used data entry and single product tracking mode is to learn about the usage of barcode systems currently used for data input and single product tracking. About more than half of companies have adopted barcode technology in their inventory management, others also believe that this technology is beneficial. The biggest problem they feel is "Time and labor consumption" and "tags are easily damaged, and the error rate is high." Scanning methods and distances are also a factor that needs to be considered. In terms of single product tracking, 74% of research objects currently use manual input data, 19% of research objects are tracked by barcode technology, and 19% of research objects have not been used in any tracking approach, nothing to know. Overall, automatic data input has not been popular in China. On the other hand, although 78% of companies use advanced material management software, such as SAP's "MATERIAL Management Module" to get inventory data about raw materials, semi-finished products and finished products, but the problem is that they are difficult to obtain accurate and error-free Data to give full play to the potential of SAP MM and other integrated applications, and 56% of research objects select manual input data, and 22% of the survey object selection barcod, which may result in contradictions and errors of data input. (II) The research objectives of this part of the understanding of RFID technology are to understand China's understanding of RFID technology. 31% of research objects have never heard of this technology, 40% of research objects have heard of this technology, but there is no in-depth understanding of its application. Only 9% of research objects are more understanding of RFID technology in manufacturing, logistics, retail. Overall, they believe that there is a lack of understanding of RFID technology within their company. This indicates that the market promotion of further RFID solutions in China has recently been in the near future. The specific method can be a forum, website propaganda or presentation system. (III) Existing problems and areas that need to be improved Figure 1 show the distribution of problems faced by the research, logistics, and services. There are 7 items, in turn: 1) High inventory, it is difficult to obtain data from the supply chain; 2) POS data cannot be obtained; 3) Frequent inventory shortages; 4) Stolen; 5) Management of production management and WIP goods ; 6) Quality control and management; 7) anti-counterfeiting. Since multiple choices are allowed, the total ratio is greater than 100%.
Figure 1 Enterprise's largest issues encountered in production, logistics, and services In addition to all other research objects other than 1 survey object, it is considered that they can solve their current problems through RFID technology. In the above field, high inventory and production management are two most important considerations. This reflects huge interest in producers in this field. They want to use new RFID technology, the computer can see physical objectives, allowing them to automatically track the item throughout the supply chain. They believe that RFID technology can provide new work methods and ideas for their production, purchase and sales. (4) RFID Application Field Figure 2 is a statistical situation in the field of planning to apply RFID technology. The entry in the figure is: 1) Manufacturing; 2) Distribution center; 3) Transportation; 4) Warehousing; 5) Retail; 6) On-site maintenance and service; 7) Others. Due to the multi-selection, the total ratio is greater than 100%. Figure 2 Scheme 89% of research objects in the field of RFID technology Select "Warehousing", 61% of the survey objects Select "manufacturing", only few choices "retail" and "live maintenance and service". Like American and European peers, Chinese manufacturers have a great interest in improving supply chain: reduce costs, reduce time and loss through more effective manufacturing and transportation methods. It is worth noting that two-thirds of the company in this research is a manufacturer from various industries. In the United States and Europe, the earliest is the main retailer. The EPC network is a universal system for automatic identification targets. It is often difficult to predict a new technology application. Figure 3 is a survey object that RFID data may bring them the most effective application. The entries are: 1) Supply Chain Event Management; 2) Inventory Management; 3) Sales and Distribution; 4) Production Plan; 5) Material Management; 6) Assets and Product Life Cycle Management; 7) Report and Intelligent Data analysis. Due to multiple choices, the total ratio is greater than 100%. Figure 3 may produce the highest benefit RFID app that they also show special interest on "Inventory Management" (89%) and "Material Management" (80%). We can boldly predict that with the decrease in RFID product prices, the EPC network will first get applications in container-level and pallet levels, and then as RFID product prices are further reduced, they will be interested in consumer-level applications. For example, managing shelf stocks, reduce stealing and anti-counterfeiting. At this time, there will be a privacy problem of consumers. The possibility seems endless, if privacy issues and other policy issues can be solved well, RFID technology will bring good social and economic benefits, but price and performance indicators will become new problems. Therefore, investment in Auto-ID in China must also pay special attention to this field, because the differences in the culture, legal and social structure are very large. (5) 76% of the survival factors that hinder RFID applications believe that prices are the most important factors affecting RFID technology. However, with the gradual decrease in RFID products, there will be more and more companies interested in RFID technology. The price includes two aspects: one aspect is a single electronic tag price; on the other hand, the price of derived products and services, such as software, hardware and system integration, etc. 42% of research objects believe that there is no clear frequency and interface standards (referring to interface standards between the Internet and external systems), is an important obstacle to the company's adoption of RFID technology.
Other parties believe that RFID technology will not bring any benefits to them, and even some companies believe that it is impossible to implement RFID programs at all. (6) Time to use RFID technology Figure 4 Plan to use RFID hours Although the AUTO-ID solution will bring huge advantages and commercial interests, but because of cost reasons, not all companies will immediately accept this technology. . When Chinese companies can accept RFID technology is an important issue. Figure 4 shows that in all 52 valid questionnaires, 69% of research objects will adopt RFID technology in the next 2 years, 15% of research objects are willing to start using RFID technology in half a year, and the premise is that this technology can solve them. The problem. About 33% of the survey is considered that RFID technology is still not considered in the next three years, that is, in 2006, a large number of investments may be carried out in Auto-ID. The Auto-ID is also a great risk while providing huge business benefits. The manufacturer faces a difficult choice: they must decide whether to be early recipients, active followers or "waiting for see". From the past experience, early recipients will spend a lot of money in new technologies, and profits will fall, but they will get a larger market share. Active followers will cost less due to the decrease in technical cost, but the yield is greatly reduced, and the market share remains stable. Later, people will be more backward, may soon be rejected by the market. Sometimes manufacturers must consider installing RFID tags on the product in order to meet the needs of important customers. As we all know, Wal-Mart requires its supplier to install auto-ID tags in the packing box and pallets of all products in 2006. In the table below, it can be seen that Chinese companies' attitude towards the above requirements. According to the results of the survey, the reaction of Chinese companies can be divided into 4 categories: 1) 32% of the research object adopts "customer first" strategy, although the initial investment is high, it will also use this technology immediately; 2) Most companies (48%) It is preferred to choose to communicate with customers, try to delay the use of this technology; 3) 16% of the survey object is very cautious, they prefer to lose the risk of customers and market share, waiting for the market to completely mature and then take action; 4) pole A small number of companies (3%) are not intended to adopt RFID technology due to price issues. (VII) Cooperation with business partners AUTO-ID is to provide a new, open global "Internet of Things", automatically identify any object any of the places. The pursuit of the goal is to provide a nearly perfect visual supply chain. If such a system is widely accepted, it can greatly reduce people in data acquisition, reduce inventory, ensure normal inventory of the product, reduce losses and waste, enhance safety and insurance. But another problem comes with: Do they want to share data with other business partners or develop RFIDs together to share RFIDs, share interests and costs? The survey showed that although 14% did not give a reply, more than half of the Chinese companies were willing to choose to work with their business partners. But there are still 33% of the survey identity that cannot be accepted. Third, summarizing the end of the survey, counting all research objects to adopt EPC and RFID technology to improve supply chain management and promoting the general attitude in business applications. The statistical results show that the attitude taken by the survey object is closely related to the industry and customer group. Overall, Chinese companies can be divided into 3 levels of this new technique and its huge potential in commercial applications: producers and retailers in the first floor are very active on this new technical attitude. It may become an early market adopter, accounting for 33% of the total number of surveyors. They want to use this technology as soon as possible and benefit from it. The manufacturer and retailer at the second floor plan to invest in auto-id in the near future.
