An Empirical Analysis of the RFID Effect on Suppliers\u27 Financial Performance

The objective of this study is to rigorously examine the effects of RFID on suppliers’ profitability while adjusting for endogeneity bias arising from the decision process for RFID adoption. To this end, we use a Heckman two-stage estimation method, which allows us to control for endogeneity between a firm’s organizational characteristics and its decision for RFID adoption. We find that suppliers faced with both a low level of inventory efficiency and with highly uncertain demand are more likely to adopt RFID. Further, suppliers that have adopted RFID achieve greater financial gains than their counterparts that have not. More importantly, we show that these financial gains result from improved inventory and sales efficiencies after RFID is deployed. In sum, our study sheds new light on what drives supplying firms to adopt RFID and on its role in shaping relatively higher financial performance in a post-adoption period

Empirical Evidence of RFID Impacts on Supply Chain Performance

Purpose - The purpose of this paper is to investigate the actual benefits of radio frequency identification (RFID) on supply chain performance through the empirical evidence. Design/methodology/approach - The research reviews and classifies the existing quantitative empirical evidence of RFID on supply chain performance. The evidence is classified by process (operational or managerial) and for each process by effect (automational, informational, and transformational). Findings - The empirical evidence shows that the major effects from the implementation of RFID are automational effects on operational processes followed by informational effects on managerial processes. The RFID implementation has not reached transformational level on either operational or managerial processes. RFID has an automational effect on operational processes through inventory control and efficiency improvements. An informational effect for managerial processes is observed for improved decision quality, production control and the effectiveness of retail sales and promotions coordination. In addition, a three-stage model is proposed to explain the effects of RFID on the supply chain. Research limitations/implications - Limitations of this research include the use of secondary sources and the lack of consistency in performance measure definitions. Future research could focus on detailed case studies that investigate cross-functional applications across the organization and the supply chain. Practical implications - For managers, the empirical evidence presented can help them identify implementation areas where RFID can have the greatest impact. The data can be used to build the business case for RFID and therefore better estimate ROI and the payback period. Originality/value - This research fills a void in the literature by providing practitioners and researchers with a better understanding of the quantitative benefits of RFID in the supply chain

Accessing Antecedents and Outcomes of RFID Implementation in Health Care

This research first conceptualizes, develops, and validates four constructs for studying RFID in health care, including Drivers (Internal and External), Implementation Level (Clinical Focus and Administrative Focus), Barriers (Cost Issues, Lack of Understanding, Technical Issues, and Privacy and Security Concerns), and Benefits (Patient Care, Productivity, Security and Safety, Asset Management, and Communication). Data for the study were collected from 88 health care organizations and the measurement scales were validated using structural equation modeling. Second, a framework is developed to discuss the causal relationships among the above mentioned constructs. It is found that Internal Drivers are positively related to Implementation Level, which in turn is positively related to Benefits and Performance. In addition, Barriers are found to be positively related to Implementation Level, which is in contrast to the originally proposed negative relationship. The research also compares perception differences regarding RFID implementation among the non-implementers, future implementers, and current implementers of RFID. It is found that both future implementers and current implementers consider RFID barriers to be lower and benefits to be higher compared to the non-implementers. This paper ends with our research implications, limitations and future research

The use of information systems for logistics and supply chain management in South East Europe: Current status and future direction

This research aims to investigate the current status and future direction of the use of information systems for logistics and supply chain management (LSCM) in South East Europe. The objectives are threefold: (1) to identify major challenges and developments on the use of information systems for LSCM by enterprises, (2) to examine the actual level of satisfaction of current policy on LSCM, and (3) to reveal the actual need of enterprises in South East Europe on effective use of information systems for LSCM. Mixed methodology of literature review and questionnaire survey is adopted in this research. Data collected from 79 enterprises are analysed using descriptive analysis in SPSS. The findings suggest that enterprises in Albania, Bulgaria, Greece, Former Yugoslav Republic of Macedonia (FYROM), Romania, and Serbia and Montenegro, face similar challenges but all are in different stages of developments of LSCM. Their use of information systems explains their heavy focus on supply chain partnership and weakness in demand chain partnership. Major findings suggest that companies and governments alike in that region do not seem to be ready for playing a significant and demanding role in global supply chains. Current deficiencies, including limited abilities in building valuable forward relations, weak strategic planning and organisation, and infrastructural problems, are major obstacles for fast development in LSCM. At the same time though, traces of changing mentalities do exist, setting the ground for improved performance and ultimately for a better position in global business

How do supply chain management and information systems practices influence operational performance?:Evidence from emerging country SMEs

This study first provides a comparative analysis of the impact of supply chain management (SCM) and information systems (IS) practices on operational performance (OPER) of small- and medium-sized enterprises (SMEs) operating in two neighbouring emerging country markets of Turkey and Bulgaria. Then, we investigate moderating effects of both SCM–IS-linked enablers and inhibitors on the links between SCM and IS practices and OPER of SMEs. To this end, we first empirically identify the underlying dimensions of SCM and IS practices, and SCM–IS-related enabling and inhibiting factors. Second, a series of regression analyses are undertaken to estimate the impact of the study's constructs on OPER of SMEs. The results are discussed comparatively within the contexts of both Turkish and Bulgarian SMEs and beyond. The study makes a significant contribution to the extant literature through obtaining and analysing cross-national survey data of SCM and IS practices in emerging country markets

RFID in the supply chain: lessons from European early adopters

Purpose Radio frequency identification (RFID) is increasingly being presented as a technology with the potential to improve supply chain performance, but empirical evidence from early adopters is sparse. This paper aims to rectify this scarcity and contribute to a more informed discussion in and between academic and practitioner communities. Design/Methodology/Approach The paper is based on a conceptual model of factors influencing the success of adoption efforts. It then reports the results of a survey of 612 European supply chain managers, focusing on the 128 respondents who have begun RFID trials. Findings A significant influence on operational deployment is the presence of mandates from key customers requiring the technology’s use. Customer mandates also impact the anticipated benefits of a faster sales cycle and of enhanced systems integration, though the relationships are complex. By contrast, greater cost reduction benefits are anticipated in two industries where mandates are less common – industrial goods and logistics. Perceived organizational innovativeness positively impacts anticipated ROI from RFID. Companies adopting a ‘slap and ship’ approach are less likely to anticipate pricing benefits than those integrating RFID into enterprise systems Research Limitations/Implications The limitations of the paper include the limited sample size of early adopters. In addition, qualitative research is needed into RFID supply chain applications and into different approaches to IS integration of RFID, to inform future survey work. Practical Implications This paper informs supply chain managers and senior decision makers who are examining the potential of RFID technology. It offers guidance on what issues to look for when adopting this technology, approaches to take and the benefits that might be accrued. Originality/Valuer This paper offers a major contribution to understanding the current status of the adoption of RFID in European supply chains. This understanding is put in the context of the wider literatures on supply chain management and the adoption of information systems and te

Semantic discovery and reuse of business process patterns

Patterns currently play an important role in modern information systems (IS) development and their use has mainly been restricted to the design and implementation phases of the development lifecycle. Given the increasing significance of business modelling in IS development, patterns have the potential of providing a viable solution for promoting reusability of recurrent generalized models in the very early stages of development. As a statement of research-in-progress this paper focuses on business process patterns and proposes an initial methodological framework for the discovery and reuse of business process patterns within the IS development lifecycle. The framework borrows ideas from the domain engineering literature and proposes the use of semantics to drive both the discovery of patterns as well as their reuse

Traceability in the U.S. Food Supply: An Application of Transaction Cost Analysis

Suboptimal supply of food and agricultural traceability is framed in a transaction cost analysis. We propose a model that considers the variables of opportunism potential, agency costs, uncertainty, asset specificity, frequency, and transaction costs. The model is then applied to the development of a typology of feasible governance modes – market, hybrid, firm, or public bureau, considering levels of transaction costs and competencies of private firms. Theoretical and practical implications are discussed and future research opportunities are suggested.traceability supply, transaction cost economics, agency theory, Agribusiness,

Reviewing the Drivers and Challenges in RFID Implementation in the Pharmaceutical Supply Chain

Counterfeiting is a global phenomenon that poses a serious financial threat to the pharmaceutical industry and more importantly jeopardizes public safety and security. Different measures, including new laws and regulations, have been put in place to mitigate the threat and tighten control in the pharmaceuticals supply chain. However, it appears that the most promising countermeasure is track-and-trace technology such as electronic-pedigree (E-pedigree) with Radio Frequency Identification (RFID) technology. In this study we present a framework exploring the antecedents and consequences of RFID applications in the pharmaceutical supply chain. The framework proposes that counterfeiting and E-pedigree regulation will drive the implementation of RFID in the pharmaceutical supply chain, which in turn provides strategic and operational benefits that enable competitive advantage. Meanwhile, the implementation of RFID requires overcoming many operational, technical and financial challenges. The framework provides a springboard that future study can explore using empirical data