Transport and logistics key to economic strength:

The importance of efficient logistics for trade and growth is now widely acknowledged. Better logistics performance is strongly associated with trade expansion, export diversification, ability to attract direct foreign investments, and economic growth. Trade logistics matters! World trade moves between countries by a network of increasingly global logistics operators. However the ease with which traders use this network to connect international markets greatly depends on country-specific factors. The World Bank grades over 150 nations on logistics performance with a ranking process known as the LPI (*Logistics Performance Index). Germany heads up this global ranking.

Supply Chain pressures

Much of the infrastructure supporting the global supply chain is dated. Many ports, road networks and shipping lanes lack scalability. Production facilities are often inflexible and in some cases obsolete. Everywhere there is pressure to reduce energy consumption and waste.

Analyst input suggests that the biggest pressures facing the supply chain today are that of flexibility, visibility and sustainability. Consumer buying behaviour is rapidly changing which in turn has a huge impact on the logistics sector as additional services and processes are required. Containing costs is insufficient. Supply chain organisations must use technology to adapt if they are to remain competitive while offering value added services to an increasingly demanding and expectant consumer base.

The importance of information systems

Information systems are the one piece of supply chain infrastructure that remain under utilised and exploited. To meet the challenges and pressures faced within the modern supply chain, visibility to demand, supply and production/shipping constraints must been enhanced. To achieve this, fluid goods and items at all levels of the supply chain need to be more visible and traceable with consumer needs and buying patterns requiring clearer monitoring. The operational requirements of channel or contract manufacturing partners requires more detailed understanding and the flow of inventory between sites needing more granular monitoring.

How can Auto-ID help? Today?

Auto-ID continues to drive efficiency best practice and help aggregate data to create a truly visible supply chain. This is achievable only through regular data capture possibilities bar codes or RFID tags provide, generating useable data points to guide improved management of material flows, inventories and buying patterns. Furthermore, the efficiency and visibility gains offered by Auto-ID systems add flexibility without a significant layer of cost which is a key consideration in these competitive and challenging times.

Zebra’s recent RFID product announcements provide a timely opportunity to re-visit supply chain and warehousing applications with channel, and refocus partners on the proven benefits of Auto-ID, whether it is bar code or RFID.