The implementation of RFID technology increases the visibility of information at the various level of supply chain in the energy industry, allowing the members to gain as much information about the status of electrical devices as possible. The RFID integrated with the company's information system enables better process optimalization and enhances the efficiency of supply chain. However, there are lot of concerns which humbles the implementation of this technology. Some technological limitations and standards as follows read rate, reliability, lack of unified standards, high cost associated to the technology and security issues, slower down the skyrocketing effects of RFID technology.
RFID may facilitate the development of emerging supply chain configuration by acting as an enabler of a build-to-order supply chain management strategy. So the RFID may facilitate supply chain collaboration practices and may constitute a link to more collaborative approaches such as CPFR which means collaborative planning, forecasting and replenishment. There are high voltage institutional customers such as railway networks, factories or airports and then there are general retail customers which require high distribution network of electricity.
In fact, today, the world energy production is driven by demand with the global energy consumption that has been rising over the past three years at an annual average rate of 4.2% and is expecting to rise in the years to come, with Asia and Australasia (excluding Japan) which are expected to consume almost as much energy as North America by 2009. In Canada, the energy sector accounts for nearly 6% of GDP, which represents 1.9% of the labor force (327,000 jobs) and has been a major engine of growth in recent years). Beside crude oil, natural gas, coal and uranium, Canada is a major producer of electricity in the world (the fifth largest producer of energy in the world), which accounts for 9% of its total energy output. In this sector, the country benefits from low-price electricity as
hydroelectric generation is the most important source of electricity supply, accounting for 60% of the total electricity output. Owing to the abundance of energy, the size of its territory, the rigor of its climate and the high level of industrialization of its economy, Canada ranks among the most intensive consumers of energy. Nevertheless, Canada’s energy output exceeds domestic needs from far, and the surpluses are exported in the US which is its major client .
Since 1997, following a restructuring of the North American market initiated by a deregulation opening the markets to competition, utility industry has undergone significant changes, with the entrance of important competitors specializing in the production and trading of electricity and other forms of energy. This phenomenon has pushed industry members to rethink some of their strategies and revise their business practices. In this context, while supply chain applications at a strategic level (e.g. strategy definition, supplier relationship management, contractual logistic management) have been considered as a rich area of opportunity for cost reduction , this article focuses more on the operational aspects of supply chain management. For instance, activities such as power grid maintenance and mobile field service have also been identified as having important effect on cost savings and level of service improvement. It is along this continuum of electronic platforms (e.g. ERP, electronic marketplaces) and IOS adoption, that utilities are now looking toward emerging technologies such as RFID to drive transaction cost reductions.
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