The impact of radio frequency identification (RFID) technology on retail supply chain performance

This research investigates the impact of Radio Frequency Identification Technology (RFID) on supply chain performance within the Australian retail sector. This study examines how the factors associated with RFID influence adoption intentions, taking into account organisational readiness, and consequently, the impact on supply chain performance. RFID is an emerging technology being examined in the retail sector (Sullivan 2004) and a review of literature reveals many benefits associated with adopting RFID (Sarac 2010). Equally, the literature identifies challenges that impact on the capability of RFID (Ngai & Gunasekaran 2009). This research investigates these challenges under the banner of technological, organisational, external environmental and economic context factors. These challenges may be eliminated in the future (Poirier & McCollum 2006) and organisations need to be prepared. Organisational readiness is central to this research and consists of factors such as financial resources, IT knowledge, current IT use, and previous IT implementation (Asif & Mandviwalla 2004; Lekakos 2007). There is a lack of research examining RFID in a retail supply chain setting, and very few include organisational readiness. This research bridges this gap and adopting an exploratory approach, investigates RFID factors using two methods, Analytical Hierarchy Process (AHP) and Partial Least Squares Structural Equation Modelling (PLS-SEM). Initially, managers known to be aware of RFID and operating within retail supply chain organisations were interviewed to gain an understanding for the RFID environment. Following this, an expanded pilot study using AHP enabled a rigorous approach to assess the importance of RFID factors. Respondents consisted of senior managers within two large retailers, five suppliers and five technology provider organisations. In this study, AHP facilitated the ranking of RFID factors based on their perceived importance. The results indicated that technological factors were most important, followed by economic factors with respect to organisational readiness. Within the technological context, standards were the most important factor, and in the economic category, tag costs were also important. Based on the information obtained from the AHP analysis and the literature review a survey was constructed and data collected from a sample of Global Standards 1 (GS1) members. PLS-SEM, a highly regarded quantitative modelling tool, was used to analyse the data obtained from 116 respondents and ascertain predictive relationships. The results indicated a positive relationship between supply chain performance and intentions to adopt RFID. There was also a positive relationship between organisational readiness and intention to adopt. Three factors were found to be important. These included compatibility, security, and IT investment. These factors collectively explain 60.3 per cent of the variance in organisational readiness. However, investment in information technology was identified as the major factor contributing to organisational readiness. The implications of this research highlight the need for organisations to become aware of the factors and prepare for the likely event of RFID challenges being overcome. Managers need to reflect on these results and concentrate on the important factors including IT investment as part of their strategy

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

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

Radio Frequency Identification Technology: Applications, Technical Challenges and Strategies

Purpose - The purpose of this paper is to discuss the technology behind RFID systems, identify the applications of RFID in various industries, and discuss the technical challenges of RFID implementation and the corresponding strategies to overcome those challenges. Design/methodology/approach - Comprehensive literature review and integration of the findings from literature. Findings - Technical challenges of RFID implementation include tag cost, standards, tag and reader selection, data management, systems integration and security. The corresponding solution is suggested for each challenge. Research limitations/implications - A survey type research is needed to validate the results. Practical implications - This research offers useful technical guidance for companies which plan to implement RFID and we expect it to provide the motivation for much future research in this area. Originality/value - As the infancy of RFID applications, few researches have existed to address the technical issues of RFID implementation. Our research filled this gap

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

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

Evaluating the reading performance of semi-passive RFID tags to enhance locating of warehouse resources: An experiment design

Copyright @ 2011 8th European, Mediterranean and Middle Eastern Conference on Information Systems (EMCIS 2011)In the supply chain, a warehouse is a crucial component for linking all chain parties. It is necessary to track the real time resource location and status to support warehouse operations effectively. Therefore, RFID technology has been adopted to facilitate the collection and sharing of data in a warehouse environment. However, an essential decision should be made on the type of RFID tags the warehouse managers should adopt, because it is very important to implement RFID tags that work in warehouse environment. As a result, the warehouse resources will be easily tracked and accurately located which will improve the visibility of warehouse operations, enhance the productivity and reduce the operation costs of the warehouse. Therefore, it is crucial to evaluate the reading performance of all types of RFID tags in a warehouse environment in order to choose the most appropriate RFID tags which will enhance the operational efficiency of a warehouse. Reading performance of active and passive RFID tags have been evaluated before while, semi-passive RFID tag, which is battery-assisted with greater sensitivity than passive tags and cheaper than active tags, has not been examined yet in a warehouse environment. This research is in- progress research and it is aiming to perform tests for evaluating the reading performance of semi-passive RFID apparatus to provide an extensive RFID performance comparison for formulating an efficient RFID solution in warehousing environment

Radio Frequency Identification: Supply Chain Impact and Implementation Challenges

Radio Frequency Identification (RFID) technology has received considerable attention from practitioners, driven by mandates from major retailers and the United States Department of Defense. RFID technology promises numerous benefits in the supply chain, such as increased visibility, security and efficiency. Despite such attentions and the anticipated benefits, RFID is not well-understood and many problems exist in the adoption and implementation of RFID. The purpose of this paper is to introduce RFID technology to practitioners and academicians by systematically reviewing the relevant literature, discussing how RFID systems work, their advantages, supply chain impacts, and the implementation challenges and the corresponding strategies, in the hope of providing guidance for practitioners in the implementation of RFID technology and offering a springboard for academicians to conduct future research in this area

Radio frequency identification (RFID) technologies for locating warehouse resources: A conceptual framework

Copyright @ 2012 Information Technology SocietyIn the supply chain, a warehouse is a crucial component for linking all chain parties. It is necessary to track the real time resource location and status to support warehouse operations effectively. Therefore, RFID technology has been adopted to facilitate the collection and sharing of data in a warehouse environment. However, an essential decision should be made on the type of RFID tags the warehouse managers should adopt, because it is very important to implement RFID tags that work in warehouse environment. As a result, the warehouse resources will be easily tracked and accurately located which will improve the visibility of warehouse operations, enhance the productivity and reduce the operation costs of the warehouse. Therefore, it is crucial to evaluate the reading performance of all types of RFID tags in a warehouse environment in order to choose the most appropriate RFID tags which will enhance the operational efficiency of a warehouse. Reading performance of active and passive RFID tags have been evaluated before while, semi-passive RFID tag, which is battery-assisted with greater sensitivity than passive tags and cheaper than active tags, has not been examined yet in a warehouse environment. This research is in- progress research and it seeks to (i) provide a general overview of the existing real-time data management techniques in tracking warehouse resources location, (ii) provide an overall conceptual framework that can help warehouse managers to choose the best RFID technologies for a warehouse environment, (iii) Finally, the paper submits an experiment design for evaluating the reading performance of semi-passive RFID tags in a warehouse environment