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

An Exploratory Study of RFID Implementation in the Supply Chain

The purpose of this paper is to investigate the barriers and motivations for adopting radio frequency identification (RFID), the level of RFID implementation, the processes RFID is utilized in, and issues in the deployment of RFID. A survey instrument was developed based on a literature review. The survey was then distributed to the members of the Association for Operations Management Rhode Island and Boston chapters. The results were then analyzed. It was found that the majority of the surveyed firms are not considering RFID implementation. Lack of a business case and lack of understanding were cited as their main concerns. For firms considering RFID implementation and firms that had implemented RFID, better inventory management, obtaining competitive advantage, and cost reduction were the three most important motivations for adopting RFID. Financial concerns and the lack of a business case were the most prevalent issues. In addition, product tracking (pallets, cases, and items) in shipping was the most cited RFID application. It was also found that considering firms are facing less pressure from customers to adopt RFID and reported a much higher degree of apprehension regarding potential issues than implementing firms reported for actual difficulties faced. One of the limitations is the small sample size (n = 49) which may limit the generalizability of the results. By identifying barriers, motivations, and issues in the implementation of RFID, this study further educates practitioners on the challenges and opportunities of RFID, as well as providing direction to academicians for further research on this area

Critical Management Issues for Implementing RFID in Supply Chain Management

The benefits of radio frequency identification (RFID) technology in the supply chain are fairly compelling. It has the potential to revolutionise the efficiency, accuracy and security of the supply chain with significant impact on overall profitability. A number of companies are actively involved in testing and adopting this technology. It is estimated that the market for RFID products and services will increase significantly in the next few years. Despite this trend, there are major impediments to RFID adoption in supply chain. While RFID systems have been around for several decades, the technology for supply chain management is still emerging. We describe many of the challenges, setbacks and barriers facing RFID implementations in supply chains, discuss the critical issues for management and offer some suggestions. In the process, we take an in-depth look at cost, technology, standards, privacy and security and business process reengineering related issues surrounding RFID technology in supply chains

Reverse Logistics: RFID the key to optimality

Purpose: The purpose of this paper is to find ways to reduce uncertainties in Reverse logistic supply chain (RLSC) through the use of Radio-frequency identification (RFID) technology. Design/methodology/approach: This paper reviews literature and builds model to relate RFID with uncertainties in order to optimize Reverse Logistics. Findings: RFID is really efficient to determine and detect quantity, variety and cycle times of returns; however it's not as convenient to determine quality of the returns. The collected information from RFID can be used to standardize the RLSC. Research limitations: Though it’s several and unique advantages some limitations of RFID have been identified in quality and processing sequence, collecting points and different standards, and in global usage. Originality/value: Previous studies in the area of Reverse Logistics and RFID don’t cover all impacts of this technology on RLSC. This review paper has investigated these impacts and offers a model for optimizing the Reverse Logistics Supply Chain.Peer Reviewe

Returns Management for Time-sensitive Products: What is the Value of RFID and Sensor Technologies?

This contribution concerns itself with the value of RFID and sensor technologies to reverse logistics processes. Our research is motivated by the question, to what extent the accuracy of information on product quality delivered by such technologies impacts the total recovered value companies obtain from returned goods in an industry with time-sensitive products. For this purpose, we first present a case study to examine the returns management process at a manufacturer of high-tech consumer electronics. We then develop an analytical model to study the monetary benefits in a scenario with RFID-enabled product disposition. Our results first show that RFID allows for a redesign of the return process which performs more efficiently regarding total recovered value depending on technology costs (i.e. tag costs) and capabilities (i.e. sufficient sensor-delivered parameters to rightly infer the product quality). Second, our results indicate that maximum benefits can be drawn with lower accuracy but early decision on the disposition option

Measuring RFId Benefits in Supply Chains

RFId systems hold great potentials in enhancing supply chain performances. Some of the major retailers in the World (Wall Mart, Metro Group, Tesco) made sounding campaigns promoting the benefits they were able to attain. Despite the growing number of researches concerning RFId benefits, a study investigating their measurement in the supply chain context is still lacking. This paper proposes to associate qualitative RFId benefits identified in literature with corresponding measures by designing three tools: (1) an RFId oriented Performance Measurement System for the identification of all RFId related supply chain performance indicators on the base of the SCOR Model. (2) A benefits-processes-measures matrix linking the benefits identified in literature with SCOR model process to identify supply chain measures impacted by the RFId system implementation. (3) A reference framework summarizing benefits measures

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