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Technologies Proposal

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Wireless Technology Proposal

With the recent efficiency and collaboration upgrades Party Plates has proposed, improving internal communications is the next step toward advancing growth by wireless technology. Party Plates can benefit by implementing new technology that assists in the operations of everyday business. The proposed implementation of two new wireless systems will help advance Paper Plates.
The first wireless technology is Radio Frequency Identification (RFID) system. RFID is a tracking device to ensure products and supplies are currently in stock, received, and shipped accurately and updated daily. RFID makes counting inventory less expensive because extra cost for inventory labor is eliminated. This system is beneficial because inventory is more accurate and reordering products and supplies are easier to perform. The cost of changing the current system of barcodes to RFID will save money with its accuracy of inventory, reordering items, and theft reduction.
The second wireless technology is the installation of Electronic Credit Card Processing. This system requires the installation of computer software called Virtual Terminal that sends credit card information to merchants for processing. Paper Plates Internet website allows customers to browse products but not purchase online. Electronic Credit Card Processing allows customers to place orders and pay online. This technology will increase the number of sales from the website.
Although the two wireless technologies are beneficial, there are pros and cons for incorporating each.
RFID (Radio Frequency Identification)
Pros
The system allows scanners to communicate with tags, eliminating the checking and scanning of incoming inventory. The system tracks inventories incoming and distribution, and inventory shrinkage occurring during shipping. The system assists in better forecasting, giving the ability to manage inventories and distribution more efficiently. RFID increases potential sales by avoiding out of stock occurrences. Smart shelves provide accurate real-time inventory movement and replenishment needs. Once incorporated, items can be tracked from receiving, shipping, and destination points. If items are lost, misplaced, or fall off the truck the system tracks the item location.
Cons:
The system is costly and most companies cannot justify the expense. As mandates arise, many companies are incorporating RFID by placing tagging on pallets or case levels. Individual tagging will be standard in the future. The system is not backed by the Organization for Standardization (ISO). There are no industry guidelines for companies to follow when switching to RFID. The existing Supply Chain Management (SCM) systems are not compatible with RFID. Once standards are in place, RFID will be the accepted Electronic Product Code (EPC) standard. Consumers inquire if items purchased containing RFID tags will continue to be tracked once purchased and will tags be removed or turned off.
Electronic Credit Card Processing
Pros
Increased sales are expected when customers have the option to order and pay online. Consumers purchase more when using efficient ordering and electronic paying methods. Advantages of online sales is global access to customer base, convenience of placing orders, quick responses, and less call center employees, resulting in lower operational costs.
Cons
Privacy concerns are an issue if a customer chooses to use an online payment method, the customer’s sensitive information may be stored in the company’s database. Customers cannot touch products purchased and there is little to know interaction from the company.
Although there are many pros and cons to both wireless technologies the justification for making a decision to use either is valuable. The utilization of RFID will improve inventory methods, increase sales, increase security, and reduce inventory shrinkage. The use of RFID will become the standard method of inventory for SCM in the future. For Party Plates to remain competitive and grow, it must consider the benefits of RFID over the initial expense and privacy concerns. Just as RFID, the use of Electronic Credit Card Processing has advantages. The main advantage of using the Electronic Credit Card Processing is increase in sales volume. Customers have the option to call or place an order online.
With Party Plates expanding, the organization is looking toward moving forward with technology. Making the best decision regarding wireless technology is a priority for Party Plates and future endeavors. Please review the financial data attached based on current information for both RFID and Electronic Credit Card Processing to help in the decision making process.

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