RFID technology for increasing visibility in ETO supply chains: a case study

Abstract

This paper presents the application of an innovative system for increasing visibility along an Engineer-To-Order supply chain. The system has been applied in a leading Italian company that manufactures vessels and tube heat exchangers. By means of this method, the company shares information about its shop floor activities with other actors in the supply chain, i.e. clients and suppliers. The system elements are as follows: Radio-frequency identification transponders (to identify either components, operators, tooling machines (e.g. welding machines) or production phases), a Wi-Fi network (to communicate data) and a web-based application that is accessible by the company’s clients. This paper shows the methodology that is used to define the system’s architecture and the technical solutions adopted. Benefits in terms of reduction in costs for monitoring and control have been observed. Moreover, customers perceived the increased visibility of the production process to be a valuable service.