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Jonathan N - NMo
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Technology is constantly bringing changes to the business world. Many different companies have
used all sorts of different technologies to solve some of their hardest problems. One problem that
many companies face is their logistics. And many of these companies use technology to solve
that issue. One specific type of technology that is used is called information technology.
“Information Technology (IT) is the science and use of computers and other electronic
equipment to store, process, and send information.”(Stevenson, 2018, p. 251). Computers are
really good at solving mathematical equations, and most of the time logistical issues are
mathematical problems.
Currently the Wegmans supermarket chain is using information technology to help them solve
the issue of inventory. They are using a system that is semi-automated. This means that only a
few employees are required to fill orders and fulfill them. Wegmans supermarket chain currently
uses barcodes to track their inventory. This can cause issues when the barcode is out of site or if
there are multiple packages that need scanning since it would take time to go through each one.
Even though this system is not a bad system, it can be improved upon. One method to improve
upon this system is upgrading Wegmans information technology in their warehouse.
Upgrading from barcodes to an RFID or radio frequency identification tag system can greatly
improve Wegmans warehouse efficiency. “Radio frequency identification (RFID) is a technology
that uses radio waves to identify objects, such as goods in supply chains.” (Stevenson, 2018, p.
676). Having a system like this can improve the inventory management system that they have in
place by having the RFID tags replace the barcodes. This way you have a machine go through
and scan the tags rather than having an employee look for the barcode. Also if there are multiple
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containers together this system can scan them all at once rather than having to go through them
one at a time.
To apply this system, Wegmans would have to buy multiple tags which “The tags initially cost
about $1 each, and currently cost about five cents each…” (Stevenson, 2018, p. 676). Adding
that instead of the barcodes would be a good way to track all of the inventory. This can also help
with oversight. When the boxes and shipments are scanned in managers will be able to see in real
time what their inventory looks like. This system can greatly improve efficiency as well as
decrease the number of workers needed since they will not be using extra time scanning
packages.
To evaluate the effect of this newly implemented plan Wegmans would be able to see if there is
an increase in inventory going through the warehouse. If the warehouse can bring more
inventory through its doors that could offset the cost of buying the tags. Also, another method in
evaluating is by seeing there is a decrease in missing or miss scanned items. Having a more
accurate reading can make a huge difference when lots of money is on the line.
References:
Stevenson, W. J. (2018). (13th ed.). New York, NY: McGraw-Hill.Operations management
