In the purpose of strategic management one of the important business level strategies is COST LEADERSHIP STRATEGY. Supply chain management is one of the main issues of every industry in order to coordinating this process efficiency and also reducing the cost. Increase efficiency in this process is equal to more flexibility and more profit. RFID many errors and mistake that accrued by Bar Codes such as signal required, limit number of scanned items solved .Furthermore, all the information about the products was available in any locations and was accurate. Manager easily by implementing RFID improved the supply chain process and increased customer satisfactions as Wal-Mart do. Wal-Mart is the first companies in applying RFID system.” This improvement on supply chain brings Wal-Mart billions of profit as Phillip J. Windley, an Associate Professor of Computer Science at Brigham Young University, estimates that US retail giant Wal-Mart alone could save $8.35 billion annually with RFID.
RFID transponder can automatically fix to the boxes and pallets in production stages. Communication between transponders and reader are fully automatic. All the product information which is on the Electronic Product Code will store on the transponders in the moments. This information immediately transfers to the central logistics merchandise management system. Any movement of product in or out of its place and also in or out of warehouse will rescored right away thus all the information are up to date. Up to 40 RFID transponder can register by a single reader less than one second.
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