« July 2006 | Main | January 2007 »

August 02, 2006

RFID Application Areas - Proof of Delivery Application

Challenge

Avoidance or reduction of invoice deductions and in-time resolution of claim disputes through timely availability of accurate details regarding delivery of products at warehouse or retailer.

Solution Approach
  • Attach RFID tags to products at a palette, case or item level at manufacturer’s place and prepare the advance shipment notice (ASN) based on the products being shipped and not based on the pick list.
  • At Retailer’s backstore/ warehouse receiving, read the RFID tags attached to products
  • Based on the RFID tag reads prepare an electronic proof of delivery (POD) note and send it instantly to the supplier or transporter.
  • Verify if there are deviations between ASN and POD and resolve the causes before invoice is prepared
Benefits
  • Manufacturers and suppliers save immensely due to reduction in invoice deductions by more timely and accurate information, even in cases of dispute.

  • Resolution of claims becomes easier as difference between a ASN and POD may point to handling inefficiencies or shrinkages in transit.
  • An accurate ASN and POD leads to smooth receiving, payment and inventory management at retailer’s end
  • The possibility of invoice and PO matching will be high leading to improved labor productivities at both supplier and retailer end.