RFID and its influence on manufacturing

This paper discusses Radio Frequency Identification (RFID) technology and its impact on production and manufacturing. The challenges and opportunities RFID offers for manufacturing in terms of automation are discussed, and consideration is given to how this transformation takes place and which processes are targeted. The paper focuses on manufacturers using RFID for automation and on the relationship between manufacturers and suppliers. One vision about the use of RFID in manufacturing is that the results include improved knowledge about demand, better forecasting of changes in supply and demand, and a more optimal steering of the production. Other outcomes include a range of new opportunities for the production process itself that allow production processes to become more efficient. An example is presented by Siemens and its efforts to improve automation through RFID in Business-to-Business (B2B) transactions.