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China to use RFID tags to improve supply chain


12/12/2006 15:03 
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The Chinese government has emphasised the importance of the development of Radio Frequency Identification (RFID), which could have significant impacts on supply chain management and lead to efficiency gains in procurement activity.

The technology is an identification method that requires the storing of data on RFID tags that can then be remotely monitored using radio waves.

RFID transponders have the potential to replace barcodes as they can be used on live or inanimate produce and can eliminate discrepancies in inventory records.

There is large scope for the use of RFID technology in China including use in the fast expanding retail industry which could use the tags to reduce inefficiencies in supply chain management.

US retail giant Wal-Mart has already announced that its suppliers must place RFID tags on shipments and the company has a significant presence in China.

China's most recent five year plan outlines a number of advantages to RFID tags including producing cost savings and providing accurate and relevant data.

 
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