By Ram Bhutani
Supply chains have long been the backbone of industrial success by providing companies with a competitive edge. However, as the global landscape evolves with increasing complexity, frequent disruptions, and ever-growing customer expectations, the imperative to create more efficient and agile supply chains has never been more pronounced.
Automatic Identification and Data Capture technologies (AIDC), such as Barcoding and RFID (Radio-Frequency Identification), are designed to capture and transmit data across different supply chain points, laying the foundation for increased visibility and efficiency. Traditionally associated with inventory management, AIDC technology has transcended its initial purpose. It has augmented workforce productivity by digitising and automating manual and paper-based processes, ultimately elevating precision and reducing errors.
Today, barcoding has proven instrumental in combating counterfeit drug distribution, ensuring traceability, and bolstering adherence to stringent manufacturing processes. Simultaneously, RFID has found widespread adoption in asset tracking, delivering real-time visibility throughout omnichannel retail supply chains and elevating the customer experience through swift store self-checkouts. While not traditionally defined under the umbrella of AIDC technologies, IoT (Internet of Things) sensors create digital identities and can transmit more extensive and diverse real-time data, e.g., temperature and power. This enables predictive maintenance, cold chain tracking, and OEE (Overall Equipment Effectiveness) optimization.
Dispelling misconceptions, it’s important to note that Barcoding, RFID, and IoT are not competing technologies but rather complementary forces. Successful use case deployments require a hybrid stack of AIDC technologies. For example, barcoding and RFID, in combination, provide the ability to monitor, manage precisely, and track product batches through production, packaging, storage, and distribution, enabling traceability and efficiency across multiple supply chain echelons. This is critical in industries with regulatory compliance mandates for safety and quality. Beyond efficiency, AIDC technologies are increasingly embraced for their role in fostering sustainability. IoT, in particular, is a key player in this arena, driving initiatives to optimise power consumption and minimise waste.
The future of supply chain management is inherently intertwined with AIDC technologies. Integration of AIDC with enterprise software and the infusion of artificial intelligence represent the cornerstone of next-generation applications. AIDC will form the foundation upon which artificial intelligence (AI) will thrive as these technologies operate at the heart of activity, generating real-time data, which is critical for AI-driven use cases to elevate organisational efficiency to new heights.
However, successfully deploying AIDC technologies requires a well-defined digital roadmap supported by clear business cases and a thorough assessment of organisational enablers and existing IT infrastructure. Only through meticulous planning and execution can companies harness the full potential of AIDC technologies and reap the benefits of a more efficient and agile supply chain ecosystem.
The author is senior vice president, Bar Code India
