RFID for returnable container management in the automotive industry: A Discrete-Event Simulation approach

Returnable containers are a critical factor to ensure quality of manufacturing operations in the automotive industry. However, containers management is still affected by chronic issues, such as containers shortage, losses or inefficient handling. Research and industry experts agree the “Achilles’s heel” of current practice is the lack of accurate and timely data about containers flow throughout the complex automotive supply chain. Moreover, containers handling operations still rely on manual operations. Radio Frequency Identification (RFID) is a technology that allows for automatic extraction of items flow data at key points along the supply chain, without the need of manual operations, and represents a very interesting solution for returnable containers management. RFID has already been employed in many different sectors, since giants as Wal-Mart or the United States (U.S.) Department of Defense adopted it for their supply-chain. Several approaches have been adopted in literature to explore potential applications of this technology, but few studies focus on automotive returnable containers management. In this work, a Discrete-Event Simulation (DES) approach is proposed to evaluate the impact of RFID on automotive returnable containers supply chain. The model has been developed in collaboration with Fiat Chrysler Automobiles (FCA). Applying factorial design and ANOVA relevant benefits of using RFID have been identified. The same model has been used to define main influencing factors in containers supply chain performance

Organisational factors in RFID adoption, implementation, and benefits

This study investigates the impact of organisational and technological factors within pre-adoption, implementation, and post-implementation phases of RFID system deployment. In the pre-adoption phase, the study examines factors that drive and hinder organisations’ decision to adopt RFID. In the implementation phase, the study investigates the impact of organisational factors (business size, strength of culture, and business process re-engineering) on influencing the implementation processes of RFID. In the post-implementation phase, the study investigates how the benefits derived from RFID implementation interact with organisational factors (business size, strength of culture, and business process re-engineering) and RFID-related factors (product unit level of tagging, RFID implementation stage, and organisational pedigree in RFID). This study was motivated by the lack of (i) an advisory framework which considers quantifiable firm characteristics and the costs and benefits of implementing RFID, in yielding advice to guide decisions on RFID adoption, and (ii) a framework that covers the complete processes of RFID project deployment (from adoption decision to benefits derived) in yielding advice to guide decisions on RFID adoption. This study is achieved using a two-phase research approach: questionnaire survey of organisations that have adopted or plan to adopt RFID and case studies of organisations that have integrated RFID into their business processes. In addition, a thorough review of existing literature on RFID in different industrial settings was conducted. The key findings from the study indicate that RFID adoption is driven by factors from technological, organisational and environmental contexts and that the adoption, implementation and benefits of RFID are influenced by organisational culture strength, business size, and BPR. It was found that strong cultures, organisational size and BPR are all positively correlated with RFID adoption decisions, implementation and benefits. Potential contribution towards the existing body of knowledge is through highlighting the significance of organisational culture strength, business size, and BPR in providing a platform in which RFID will be accepted and implemented successfully to achieve maximum derivable benefits