Fast and accurate reconciliation of what was ordered, what was shipped, and what was received provides the basis for payments and is a vital business process central to the success of any business. The use of Electronic Product Code (EPC) with Radio Frequency Identification (RFID) technology in shipping and receiving accelerates and improves the accuracy of the reconciliation process by eliminating many of the known obstacles causing error. Two main problems addressed by EPC-enabled RFID solutions:
- Long periods of time between receipt of goods and sales readiness of those goods – leading to longer outstanding invoices and inaccurate inventory counts
- Discrepancies between what the shipping party says they sent and a what the receiving party says they received – leading to costly and time consuming resolution activities, high order processing and rush shipment costs, as well as a lack of goods actually available for sale
In an EPC-enabled RFID solution for reconciliation each and every pallet and case coming from a supplier are uniquely identified with an EPC. The EPC is then integrated into the supplier’s backend systems so that Advanced Shipping Notices (ASNs) can now specify not only what quantity customers should expect, but also which specific pallets, cases or items.
On the receiving end, identification and counting can be accomplished automatically as incoming products pass through doors equipped with the RFID readers. Because ASNs now identify specific items being sent to fulfill a specific purchase order, the retailer’s backend systems can easily identify the correct purchase order for which the trade items were intended, instantly validating and reconciling.
And because suppliers and customers share EPC read events, both parties now have complete visibility of what was shipped and received – greatly reducing discrepancies and improving dispute resolution.
Summary of benefits:
- Improved receiving processes
- Fewer disputes and deductions
- Less unnecessary reconciliation activity
- Significantly reduced cost of reconciliation
For more information about how an EPC-enabled RFID solution can improve your reconciliation processes, please call +1 937.291.3300 or email EPCinfo@gs1us.org
View the best practice guide for accelerating reconciliation.