Implement RFID in Railroad Industry from Collaborative Transportation Management (CTM) View

Radio Frequency of Identification (RFID) has changed the transportation operation. Many logistics providers have been forcedly implemented to provide their customers’ tracking information in terms of increasing their service levels. As members of the supply chain, many trade partners coincidently have brought out RFID within their internal process under conditions that standards stabilize and component costs fall. From the railroad carriers perspectives, RFID should be adapted to increase their working efficiency and working along with their customers of the supply chain. Railroad carriers should not only provide a lower freight rate but also need to offer better service for tailoring customers’ needs. It would be win-win situation. Under this demanding situation, we used an unconventional concept of Collaborative Transportation Management (CTM) that is the sub concept from the concept of Collaborative Planning, Forecasting, and Replenishment (CPFR) to find the benefit of implementing FRID in the railroad industry. The result could be used for refining business processes and building up the strength by increasing the degree of visibility and decreasing the expenditure for inventory, logistics, and transportation. It would be the dramatic improvement in railroad transportation and encourage all players of the supply chain (SC) to take advantage from RFID.