Supply Chain Management is an essential part of running smooth business operations. It is a fact that almost every business will be responsible for some level of pollution and emissions, especially during manufacturing and transportation operations. However, as ethical and responsible owners, it is our job to make sure that our operations remain as environmentally friendly as possible. One such operation is SCM. Environmentally sustainable supply chain management with RFID is a popular topic of discussion nowadays.
So, let’s talk more about it.
What is Supply Chain Management?
The supply chain in any industry refers to the transition & transportation of an item from the point of its inception to its sale. Meaning, it refers to the entire process, starting from procuring raw materials, and manufacturing to storing and selling at retail outfits.
Supply chain Management or SCM, refers to the process of monitoring and interacting with the operations of a supply chain to make them efficient and streamlined. One of the most important aspects of SCM is asset identification and tracking. And one of the most popular technologies utilized for this purpose is RFID.
How Does RFID Reduce the Environmental Impact on Supply Chain Management?
Now you know what SCM is and how radio frequency identification technology makes these operations smoother and more accurate. However, there are other reasons, why many industries prefer the use of RFID in SCM operations, like its environmental benefits.
(A). Reduces Residual & Waste Material
With the help of close monitoring and live tracking within facilities, RFID allows users to prevent the wastage of raw materials by reducing or outright eliminating overproduction, stock-outs, item misplacement, etc.
(B). Proper Asset Disposal Practices
SCM software designed by legislature-compliant companies allows users to follow environmentally beneficial practices while disposing of used or damaged assets.
(C). Reduces Unnecessary Operations
RFID allows users to have an excellent monitoring capability throughout the supply chain. With the help of this, businesses can control the movement and volume of assets along the supply chain. This not only helps in reducing the cost of operations but also reduces unnecessary carbon emissions.
(D). Ensure Green Practices on the Supplier’s Behalf
Tracking allows users to monitor the movement of their supplies and items throughout the supply chain. This provides them with a keen insight into essential factors like methods of transportation, locations, recycling facilities, etc. All of which allows users to assess the overall environmental impact of their operations.
Frequently Asked Questions
Q1. Is RFID environmentally friendly?
Yes, according to statistics and studies, the incorporation of RFID technology results in a significant reduction in carbon emissions from business operations. This is a result of RFID’s unique ability to provide highly accurate tracking and telemetry information regarding supply chain operations.
Q2. How does RFID reduce waste?
These systems reduce waste by eliminating the need for printing paper labels for asset identification & tracking purposes. Though it might not seem like much, in the long run, and large enough scale, RFID significantly reduces the production of waste.
Q3. Can You Recycle RFID Tags?
Yes, it is possible to recycle RFID tags. However, it is not as simple as it sounds, since recycling requires manually separating all the components of an item. This means that someone has to manually separate the antennas, chips, and substrate layer for these items. This makes the process of recycling time-consuming.
- Last updated on Jul 03, 2023