Cycle of improvement from RFID

The company, which outsourced manufacturing to China, went live with SAP's RFID-enabled NetWeaver earlier this year, driven by the Wal-Mart RFID mandate. Its improvements stem from automating warehouse activities and achieving data transparency initially into retailer inventory – both of which help ensure correct shipments as well as better shelf coverage at the retail outlets. Briefly, RFID tags are currently attached to the bikes as they are received into the US distribution centre. Then, via EPC codes, the system automates processes like checking at despatch for numbers and types of cycles, with actions linked to the firm's ERP. Similarly, at the retailer end, scanning ensures system inventory accuracy and re-ordering in real time. "Pacific Cycle realised early on the value RFID could deliver in helping us streamline our manufacturing and distribution," says Ed Matthews, IS director at Pacific Cycle. "We integrated RFID into our existing mySAP ERP landscape and were able to eliminate several manual steps on our delivery process. At the same time, we have more visibility of tagged inventory in our retailer's supply chain. This helps us create a more efficient and transparent supply chain."