上游充通大 SHANGHAI JIAO TONG UNIVERSITY 供应链设计与管理 Designing and Wanaging the Supply Chain Name: 陈勇喆 No. 5090309510 First Report Title: Globalization Strategy of Wal-Mart Second Report Title: RFID Technology in Market Forecasting Grade:
供应链设计与管理 Designing and Managing the Supply Chain Name： 陈勇喆 No. ： 5090309510 First Report Title： Globalization Strategy of Wal-Mart Second Report Title： RFID Technology in Market Forecasting Grade：
Abstract:Nowadays,more and more techniques influence the development of supply chain.Companies use Radio frequency identification (RFID)to achieve package tracking,product tracking and manage the stores,optimize the manufacturing.RFID is spread into many aspects of supply chain;however,there is no application of RFID in the demand forecasting.This report will introduce a new idea of implement of RFID to help companies improve their demand forecasting level. 1.RFID Application With the development of hi-tech,not only companies want to use RFID to manage their supply chain,but also some governments see the benefits of RFID and expect to apply it in the city management,like South Korea has already carry on a program to test the RFID in the traffic management. What are the advantages of RFID?It is not a tough question and we can find the answers easily by learn some cases. Wal-Mart saw a return on investment of RFID two years after it went live with RFID technology and mandated its use for its suppliers.Out-of-Stock items that are RFID-tagged being replenished three times faster than before,and the amount of out-of Stock items that have to be manually filled cut by 10 percent.By using RFID, Wal-Mart can save a lot of labor and cost in store management and can also prevent the thief as well as omitting events. RFID is also used in the tracking of package and products,company managers will know exactly the number of products and the condition of each product.The more manufactories know the accurate number of products which have already been prepared as finished or those which are being fabricated,the quicker deciders will adjust the strategy of manufacture. In the 2011 report of RFID application in a project initiated by the IBM and Metro, by using the RFID and EDI,Metro's cash-and-carry shopping malls,supermarkets and Real group distribution center warehouses saved 8.5 million euro per year.And this is the result that Metro analyzed and quantified only two links of the whole eleven links in the process.Using RFID increased the amount of classified clothes from 150 to 6000 averagely. From the articles in Internet,I find that the application of RFID is not just used in the industry.Almost every university uses the RFID technology in their student ID card system.For example,in our campus,we held only one card which you will do anything you want,such as paying your lunch,getting the permission to the dormitory building and even using the computer classes.In this situation,the RFID technology is a convenient way to identify who you are and where you are.You can also sometimes see a scene in railway station that the police use a handheld device to check your ID card to find out whether you are a suspect in some criminal cases.In RFID video which professor provided us I saw an example that RFID is used as a building security. If a building is in fire,all the people should rush out of the building.But how the firefighters know how many people are still in the building and where they are.The scientists design a RFID system that monitors every action of people in the building, when a person goes into this building,RFID reader will note who he or she is,and
Abstract: Nowadays, more and more techniques influence the development of supply chain. Companies use Radio frequency identification (RFID) to achieve package tracking, product tracking and manage the stores, optimize the manufacturing. RFID is spread into many aspects of supply chain; however, there is no application of RFID in the demand forecasting. This report will introduce a new idea of implement of RFID to help companies improve their demand forecasting level. 1. RFID Application With the development of hi-tech, not only companies want to use RFID to manage their supply chain, but also some governments see the benefits of RFID and expect to apply it in the city management, like South Korea has already carry on a program to test the RFID in the traffic management. What are the advantages of RFID? It is not a tough question and we can find the answers easily by learn some cases. Wal-Mart saw a return on investment of RFID two years after it went live with RFID technology and mandated its use for its suppliers. Out-of –Stock items that are RFID-tagged being replenished three times faster than before, and the amount of out-of Stock items that have to be manually filled cut by 10 percent. By using RFID, Wal-Mart can save a lot of labor and cost in store management and can also prevent the thief as well as omitting events. RFID is also used in the tracking of package and products, company managers will know exactly the number of products and the condition of each product. The more manufactories know the accurate number of products which have already been prepared as finished or those which are being fabricated, the quicker deciders will adjust the strategy of manufacture. In the 2011 report of RFID application in a project initiated by the IBM and Metro, by using the RFID and EDI, Metro’s cash-and-carry shopping malls, supermarkets and Real group distribution center warehouses saved 8.5 million euro per year. And this is the result that Metro analyzed and quantified only two links of the whole eleven links in the process. Using RFID increased the amount of classified clothes from 150 to 6000 averagely. From the articles in Internet, I find that the application of RFID is not just used in the industry. Almost every university uses the RFID technology in their student ID card system. For example, in our campus, we held only one card which you will do anything you want, such as paying your lunch, getting the permission to the dormitory building and even using the computer classes. In this situation, the RFID technology is a convenient way to identify who you are and where you are. You can also sometimes see a scene in railway station that the police use a handheld device to check your ID card to find out whether you are a suspect in some criminal cases. In RFID video which professor provided us I saw an example that RFID is used as a building security. If a building is in fire, all the people should rush out of the building. But how the firefighters know how many people are still in the building and where they are. The scientists design a RFID system that monitors every action of people in the building, when a person goes into this building, RFID reader will note who he or she is, and
when a person step into another room,RFID reader will also note this in a dynamic database,this means that the computer or the database will tell the whole building information in any time,and this is definitely help the firefighters to confirm the situation they are facing and what action they will apply to put out big fire and guarantee nobody will hurt in their out-fire strategy.In this case,we treat people as a kind of products and track them,get the instant information,guarantee that they are safe. The conception that treating people as products is not a new idea,and in the next section,I will show some of retail companies using this concept to forecast the demand and change the distribution strategy. 2.Some Demand Forecasting Methods As we all learned some knowledge about the supply chain,it is not difficult to notice that the information of customer demand is a formidable trouble for retailer companies.Because demand information is not transferred in each link of supply chain,the Bullwhip Effect amplifies the demand from the retailer to the manufactory. This will increase the cost of storage and transportation.What's more,the unreasonable products position on the shelves will bring some difficulties to the customers having a happy shopping experience. There is a famous case frequently cited in the sales psychology class.In the United States Wal-Mart supermarket,the beer and the baby diaper are put together.Why does this simple measure double the sale of both products?The careful data analysts of Wal-Mart give the reason;after comparing the shopping records of every customers, they find that the beer and the baby diaper are always exist in the same record,because in America,women ask their husbands to buy diapers after working time.Despite this measure is not as great as the strategy of the whole supply chain,it reflects the importance of forecasting the demand.Although the data analysts in this case do not use some hi-tech methods,they help the decider to adjust the strategy of shelf display and obtain a good result. In addition to this case,Wal-Mart also implements some other hi-tech methods.By charting with a professor,I heard that Wal-Mart used the video cameras to track some customers to find what the regular routes of specific groups of people are.And then analyzed the data and redisplay the products on the shelves.Another method is also related to the video camera.Researchers observed the eye movement of each customer in front of the shelves to find out what kind of products a customer will search for right after he or she bought a certain product. When analyzing the data from huge database,they using a number of algorithms, such as Artificial Neural Networks,SVM.These algorithms help annalists find the most important information of customers. All these methods based the hi-tech eliminate some subjective thoughts comparing the methods that use interview or questionnaire survey and find out the universal rules of shopping experiment.The company policymakers can follow these rules to meet the demand better.That is why we all believe that the forecasting is very significant though some people think extremely accurate prediction is not possible
when a person step into another room, RFID reader will also note this in a dynamic database, this means that the computer or the database will tell the whole building information in any time, and this is definitely help the firefighters to confirm the situation they are facing and what action they will apply to put out big fire and guarantee nobody will hurt in their out-fire strategy. In this case, we treat people as a kind of products and track them, get the instant information, guarantee that they are safe. The conception that treating people as products is not a new idea, and in the next section, I will show some of retail companies using this concept to forecast the demand and change the distribution strategy. 2. Some Demand Forecasting Methods As we all learned some knowledge about the supply chain, it is not difficult to notice that the information of customer demand is a formidable trouble for retailer companies. Because demand information is not transferred in each link of supply chain, the Bullwhip Effect amplifies the demand from the retailer to the manufactory. This will increase the cost of storage and transportation. What’s more, the unreasonable products position on the shelves will bring some difficulties to the customers having a happy shopping experience. There is a famous case frequently cited in the sales psychology class. In the United States Wal-Mart supermarket, the beer and the baby diaper are put together. Why does this simple measure double the sale of both products? The careful data analysts of Wal-Mart give the reason; after comparing the shopping records of every customers, they find that the beer and the baby diaper are always exist in the same record, because in America, women ask their husbands to buy diapers after working time. Despite this measure is not as great as the strategy of the whole supply chain, it reflects the importance of forecasting the demand. Although the data analysts in this case do not use some hi-tech methods, they help the decider to adjust the strategy of shelf display and obtain a good result. In addition to this case, Wal-Mart also implements some other hi-tech methods. By charting with a professor, I heard that Wal-Mart used the video cameras to track some customers to find what the regular routes of specific groups of people are. And then analyzed the data and redisplay the products on the shelves. Another method is also related to the video camera. Researchers observed the eye movement of each customer in front of the shelves to find out what kind of products a customer will search for right after he or she bought a certain product. When analyzing the data from huge database, they using a number of algorithms, such as Artificial Neural Networks, SVM. These algorithms help annalists find the most important information of customers. All these methods based the hi-tech eliminate some subjective thoughts comparing the methods that use interview or questionnaire survey and find out the universal rules of shopping experiment. The company policymakers can follow these rules to meet the demand better. That is why we all believe that the forecasting is very significant though some people think extremely accurate prediction is not possible
Since forecasting plays such an important role in supply chain,we have no reason not to do it well.In next section,I will talk about my own thought of RFID future application in demand forecasting. 3.Application of RFID in Demand Forecasting Considering the concept I mentioned in the section above that we can treat people as a kind of product,we can provide some reasonable advice to make customers meet the products which are on the shelves,and instead of waiting the customers choose the products. To achieve my goal,it requires that every customer in supermarket of shopping mall has a RFID card or some other device.When customers enter the shopping place, RFID reader should probe the enter sign and find out all the records that the customers used to buy and analyze the taste of each customer and show a optimal route to save them time.When customers step into a zone that small enough to show some products information,then RFID reader will again probes the personal information than show what things people choose most and what is probable favorite for customer.By using RFID companies do know what is the most needed in short period and then provide a change strategy after comparing the price of products or some other information that customers will care about.Perhaps this is a better way to achieve the trade promotion than the blind discount like Barilla SpA that will lead to the Bullwhip Effect. I think there is another situation that RFID will help retailers to pursuit more profits. If a sport equipment retailer has the information of each customer's training record, and then analyze the need for different kind of sports equipment.But retailers need to invest a lot of money to establish this system.But the effect is not quite obvious at first, because only the long term of forecasting is accurate based the widely accepted theory. Although there are many difficulties to implement the RFID in every single customer, I do not doubt that RFID will improve the forecasting accurate,especially in a short period time,for we have already have test in Internet of things (IOT)which connect everything include us,human being,to a huge information network.After fulfilling the construct of IOT,the supply chain will be more visible for every link of supply chain and minimum the Bullwhip Effect. 4.Conclusion With the help of technology,supply chain will be more automatic and safer.But the forecasting will still be a trouble for the policymakers in a long time for elusive thought of different people.But I believe that after hard work,people will control the supply better and provide customers a better purchase experiment
Since forecasting plays such an important role in supply chain, we have no reason not to do it well. In next section, I will talk about my own thought of RFID future application in demand forecasting. 3. Application of RFID in Demand Forecasting Considering the concept I mentioned in the section above that we can treat people as a kind of product, we can provide some reasonable advice to make customers meet the products which are on the shelves, and instead of waiting the customers choose the products. To achieve my goal, it requires that every customer in supermarket of shopping mall has a RFID card or some other device. When customers enter the shopping place, RFID reader should probe the enter sign and find out all the records that the customers used to buy and analyze the taste of each customer and show a optimal route to save them time. When customers step into a zone that small enough to show some products information, then RFID reader will again probes the personal information than show what things people choose most and what is probable favorite for customer. By using RFID companies do know what is the most needed in short period and then provide a change strategy after comparing the price of products or some other information that customers will care about. Perhaps this is a better way to achieve the trade promotion than the blind discount like Barilla SpA that will lead to the Bullwhip Effect. I think there is another situation that RFID will help retailers to pursuit more profits. If a sport equipment retailer has the information of each customer’s training record, and then analyze the need for different kind of sports equipment. But retailers need to invest a lot of money to establish this system. But the effect is not quite obvious at first, because only the long term of forecasting is accurate based the widely accepted theory. Although there are many difficulties to implement the RFID in every single customer, I do not doubt that RFID will improve the forecasting accurate, especially in a short period time, for we have already have test in Internet of things (IOT) which connect everything include us, human being, to a huge information network. After fulfilling the construct of IOT, the supply chain will be more visible for every link of supply chain and minimum the Bullwhip Effect. 4. Conclusion With the help of technology, supply chain will be more automatic and safer. But the forecasting will still be a trouble for the policymakers in a long time for elusive thought of different people. But I believe that after hard work, people will control the supply better and provide customers a better purchase experiment