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

A Cost Benefit Calculator for RFID Implementations in the Apparel Retail Industry

The apparel retail industry is on the one hand facing challenges from increasing competition, consolidations, and thus increasing pressure to reduce costs. On the other hand, customers are getting more demanding, resulting in shorter fashion cycles, and demands for new customer experience. RFID technology is supposed to raise efficiency and to enable innovative customer service offerings. Besides cost savings, benefits are expected to arise from newly designed RFID applications and customer insights from analyses of shop floor data. Recently, apparel retailers started to investigate this technology, resulting in several trials and pilots world-wide. However, the business case of RFID in the apparel retail industry is not clear. Based on the findings of a real-world deployment, our contribution presents a cost-benefit calculator that is specifically designed to meet the requirements of apparel retail industry RFID implementations

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

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

RFID in Retailing and Customer Relationship Management

Radio Frequency Identification (RFID) is a hot topic in retail supply chain management [Behrenbeck, Küpper et al. 2004]. Yet, a recent study predicts “that the true benefits of RFID for retailers will be in enhanced marketing opportunities” [Sharpless 2005]. Research on RFID for marketing purposes is still rare giving the opportunity for more specific research on how RFID will influence business to consumer (B2C) marketing and services [Curtin, Kauffman et al. 2005]. Apparel retailing will most likely be one of the first industries to adopt item level tagging and thus benefit from those new marketing opportunities [Chappell, Durdan et al. 2003; Kurt Salmon Associates 2005]. This paper investigates the opportunities of RFID to enhance B2C marketing of apparel retailers. The paper presents six out of 17 developed RFID applications that support relationship marketing of apparel retailers to better recruit, retain, and recover customers. The RFID applications are classified by the marketing goals they fulfill and the marketing phase they support. The authors describe the use of each RFID application exemplified, and evaluate the additional value for the customer company relationship as well as the feasibility for apparel retailers to implement the application into practice

Business process and technology lessons learned, recommendations and best practices for new adopters

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2006."June 2006."Includes bibliographical references (leaves 117-118).This thesis focuses on documenting learnings from a RFID data exchange pilot in the fast moving consumer goods industry. The pilot we studied is a collaborative effort between two of the largest retailers in the world and five of their major suppliers, facilitated by EPCglobal and the MIT Auto-ID labs. Currently, manufacturers and suppliers are building the infrastructure to exchange EPC data to validate standards and proof of concepts for RFID adoption. The outcome of these pilots will essentially set the stage for large scale RFID adoption worldwide. Our thesis attempts to document issues relating to data exchange from business process, organizational and technical perspectives. We have synthesized the findings and consolidated the lessons learned during the pilot in an attempt to form a set of actionable recommendations for new companies looking to start on RFID pilot projects.by Rida Chan [and] Sangeeth Ram.M.Eng.in Logistic

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

The Impact of RFID on Firm and Supply Chain Performance: a Simulation Study

Radio Frequency Identification (RFID) is a tracking technology that enables firms to digitize their supply chain processes and manage their supply chain activities efficiently and effectively. This study develops an analytical model of the impact of RFID use on inventory accuracy and on the firm-level and supply chain-level performance of a single product line. Due to the complexity of the analytical model, we propose to analyze the model using simulation and to gain insights into the behaviors of the various players in the supply chain. This research in progress will help better understand RFID value in supply chain, from an inventory management perspective and also bring into focus the impact of product type and technology development status on technology use