Analysis On RFID Operation Strategies Of Organic Food Supply Chain

The market competition in21stcentury is the competition between supplychains, which is also true for agricultural field. With the fierce market competition, foodsafety issues are also increasingly frequent.As a necessity to the survival of people, manyconsumers are stricter with the quality security of agricultural products, which highlightsthe importance of source management of agricultural products supply chain. Although thesupply chain management theories are becoming mature, the problems of how to guaranteefood safety and quality in supply chain environment are attracting the focus in the world.As one of most important new technologies in21st century, RFID have been widelyapplied in supply chain management. The emerging of RFID technology overcomesvarious problems existed in the supply chain management, especially beneficial forovercoming current frequent quality problems in agricultural products supply chain. Forthis reason, this article is based on “Channel Strategies and their Analysis for Supply Chainof Organic Food with RFID”.This aimed at analyzing how to guarantee food quality andsafety in the supply chain operation,whether the implementation of the RFID technologywill achieve better performance or not, which links to implement RFID technology willrealize the optimization of entire supply chain. The overall goal is to guarantee food qualityand safety using a variety of supply chain management ideas and optimization technology.In this article, first of all, we analyze and compare the changes and reasons of differentmarkets and different channels using RFID by constructing three kinds of most basicmodel, this provides a good reference and support for the decision of supply chainenterprises. Then, through the selected several key links on the food supply chain, weanalyze the choice of implementing subject in three different situation.For selection strategy of market structure,we considers the quality problem of theorganic food supply chain’s product, by constructing three models, analyzing their profitsand demand’s change and the reasons for this of the different markets and different channel when using RFID operation strategy. It shows that: These two factors which aresubstitution of products and upscale market’s basic market share influence the channelchoice, and the basic market’s share is influenced by the quality of products. When wechoose the channel, no matter the two factors how to change, double-channel market isalways the best choice.For selection strategy of the subject of RFID implementation, we assume threedifferent situations of food supply chain model to analyze othe profits, demand and pricevariation as well as reasons of farmers and logistics enterprises when they adopt the RFIDtechnology respectively. The research results demonstrated that any upstream member ofsupply chain not only can increase its product safety level by launching the RFID, but alsocan facilitate the product safety of other members of the supply chain. This benefits theRFID executor through the improved traceability of supply chain. However, it is better forthe logistics enterprises to launch RFID rather than farmers for most cases.