The Impact of EPCIS on Supplier Relationship Management in the Supply Chain
RFID technology and the Electronic Product Code Information Services (EPCIS) standard have become increasingly critical components in the supply chain ecosystem. The EPCIS standard is a tool to improve supply chain visibility and enable better data sharing among supply chain partners. One of the areas where EPCIS has shown great potential is in supplier relationship management (SRM).
In this blog post, we will explore how EPCIS impacts SRM in the supply chain, and how organizations can leverage this technology to create better collaboration and foster stronger relationships with their suppliers.
Supplier relationship management (SRM)
Supplier relationship management (SRM) is the process of managing the relationships between suppliers and purchasers in a supply chain. This process includes developing a mutually beneficial relationship with suppliers, ensuring consistency in quality and delivery of products, managing risks associated with suppliers, and reducing the cost of the supply chain.
Effective SRM requires the exchange of accurate and timely information between suppliers and purchasers. This exchange of information is critical for suppliers to manage their inventory, production planning, and overall business practices.
EPCIS and its impact on SRM
EPCIS is a standard developed to share critical information about the movement and location of goods in the supply chain. This real-time tracking data enhances end-to-end visibility, allowing all partners involved in the supply chain to see the same up-to-date information on the product’s whereabouts.
EPCIS enables data-sharing of key data-points such as serial numbers, batch numbers, and expiration dates. The data shared through EPCIS allows for more reliable inventory optimization, more effective demand planning, and better overall management of the supply chain.
EPCIS also enables more transparent risk management. It allows for tracking of product movement from origin to destination, and can flag when a shipment is at risk of being delayed, damaged or breached. Suppliers can then be alerted immediately, enabling them to take corrective action.
Tracking visibility can ultimately improve collaboration and help manufacturers and service providers to predict production levels and avoid underproduction or overproduction, thereby reducing investment costs and increasing overall profitability. These benefits not only improve the bottom line of individual organizations but also increase efficiencies across the supply chain as a whole.
How EPCIS enhances SRM
Effective SRM requires a reliable flow of information between all the players in the supply chain. EPCIS enables this by providing a platform for users to exchange relevant data. Below are some of the key ways EPCIS enhances SRM:
Improved visibility
EPCIS allows for real-time data sharing of product movement and location, providing greater supply chain transparency. This allows suppliers to track inventory levels, ensure better product quality, and reduce supply chain costs by minimizing unnecessary inventory.
Improved collaboration
EPCIS allows for more effective collaboration between suppliers and purchasers. By sharing data in real-time, suppliers can better predict production levels, which can inform more accurate demand forecasting. This collaboration is particularly important in times of crisis or when there are major disruptions to the supply chain.
Increased efficiency
By providing better visibility and collaboration, EPCIS offers a more efficient supply chain. This increases the quality of products manufactured, reduces costs, and reduces time-to-market. These improved efficiencies ultimately result in increased profitability for all parties in the supply chain.
Better risk management
EPCIS enhances risk management by providing more accurate and real-time information about product movement. In case of issues or risks, suppliers can quickly respond, reducing the impact to the supply chain.
Enables Continuous Improvement
EPCIS enables organizations to track and monitor the performance of their supply chain partners. By having access to data, companies can analyze and identify trends, and implement changes to improve their overall performance. This way, they can better understand their suppliers, get feedback on their own performance and make the necessary improvements.
Conclusion
EPCIS provides a standardized format for sharing supply chain data that enhances supplier relationship management, enabling better collaboration, improving efficiencies, and enhancing risk management. It ultimately benefits all parties involved in the supply chain, leading to cost savings and increased efficiencies.
As technology continues to advance and supply chains become more complex, EPCIS will become even more critical for effective SRM. Organizations that embrace EPCIS can benefit from a more transparent, efficient, and effective supply chain that fosters stronger relationships with their suppliers.