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

Strategic management for logistics and supply chain operation in healthcare

In the healthcare industry, supply chain and logistics management are an important element in supporting the sustainability of the healthcare business. Business continuity in the healthcare industry requires improved quality of the healthcare sector. The quality of healthcare services may be affected by the performance of supply chain and logistics. Supply chain and logistics processes provide a substantial contribution in the overall financing of healthcare. The high costs incurred to finance the activities of the supply chain and logistics in the healthcare industry providing a major challenge for healthcare management. Management is demanded to achieve quality healthcare supply chain processes at a high level that minimize operating costs and improve service quality. So that, strategy and innovation in management are needed to achieve a high quality performance of supply chain and logistics in the healthcare industry in order to run effectively and efficiently. This paper discusses the research that focuses on the strategic management in the field of supply chain and logistics management in the healthcare industry. Based on obtained and selected articles will discuss various strategies and innovation within the healthcare system to improve supply chain performance

Inventory Management Applications for Healthcare Supply Chains

Recently, the healthcare industry has started using inventory management applications to achieve efficiency and effectiveness in its supply chains. There is a rapid growth in the demand of drugs and diagnostic systems within the healthcare industry. The biggest challenge for health care supply chains is to manage inventory efficiently and keep up the satisfactory service level at the same time. In order to meet the increased demand of healthcare products, healthcare supply chain professionals must find efficient and effective ways to improve and optimize inventory. Moreover, perishability and disposability of many medical products have been major problems in healthcare supply chain management. The current managerial practices and conflicts among different stakeholders in health care supply chains are directly associated with the issue of inventory management. This literature review will introduce various inventory management applications that are mainly focused on minimizing inventory costs and increasing overall efficiency in healthcare supply chains. The uses of simulation, new technologies to track healthcare products, new managerial practices, optimization, and information sharing techniques have been discussed throughout this literature review. We have also discussed pharmaceutical inventory management strategies in great detail, as pharmaceuticals are one of the main products of healthcare supply chains

DCPP/POLYGAIT Inventory Control System

This report discusses a proposed system to improve upon inventory management issues experienced in the M&TE Tool room for the PG&E Diablo Canyon Power plant. Effective inventory tracking and management is an important characteristic of any organization handling physical assets, and without the proper system in place, companies may lose expensive items and waste time by not having equipment available when needed. The tool room is experiencing inventory shrinkage of M&TE equipment nearing 100,000 per year largely because of an inefficient checkout system that fails to keep employees accountable for the tools they check out. Even more costly than the shrinkage of inventory is the expense of downtime incurred by not having a tool ready when needed. Two main issues with the current system were identified as the reasons for the shrinkage and lack of accountability: 1 when no tool clerk is on staff, mainly nights and weekends, an unreliable paper-method for checkout is used, and 2, employees are not held responsible for checking their tools back in, resulting in tools being handed-off outside of the tool room. To combat these problems, a self-checkout/check-in system was developed, eliminating the need for the paper system, requiring an employee login for returning tools, and reducing the total number of steps in the process by 36%. PG&E was also interested in using RFID (Radio Frequency Identification) technology to further increase accountability and improve the tracking of tools in and out of the tool room. A working proof-of-concept model was designed, built, and tested at Cal Poly’s POLYGAIT Laboratory along with recommendations for a potential implementation at PG&E. The results of the portal testing indicate that the best RFID tags for larger items include the Confidex Ironside Slim or Xerafy Cargo Trak tags while the Confidex Captura G2XM should be used for cabled probes. In addition, a maximum of six tools should be carried through the portal at a single time. An economic analysis for the proposed RFID system with revised checkout was performed along with two other alternatives: an increase in staffing on nights and weekends with the revised checkout and regular staffing with the revised checkout. All three alternatives were compared to the current state, which includes regular staffing without the revised checkout. The results of the economic analysis suggest that the RFID system paired with the revised checkout provides the lowest total cost solution, with a payback period of 0.046 years and a cumulative four-year return of 1,442,914.00. The second total lowest cost solution, which is the revised checkout method alone without an RFID system or increase in staffing, provides the fastest payback period of all the alternatives, in 0.019 years, but provides less of a return on an investment than when paired with the RFID system

An Inside Look at RFID Technology

RFID (Radio Frequency Identification) is considered one of the “hottest” technologies due to its particular capabilities to track and trace in real-time objects across the extended supply chain. This article gives an inside look at the RFID world in order to improve the level of understanding of this technology and the EPC Network. An introduction to RFID’s systems, RFID’s potential to improve the efficiency of operations, different areas of application, as well as a roadmap approach to undertake an RFID implementation will be discussed in this article.La Identificación por Rediofrecuencias (RFID) es considerada hoy en día una de las tecnologías “de punta” debido a su capacidad especializada de identificar y trazar objetos a lo largo de una cadena de provisión en tiempo real. El siguiente artículo hace una revisión de RFID en el mundo con el objetivo de entender ésta tecnología y la red EPC. Una introducción a los sistemas de RFID, y el potencial de éste sistema para mejorar la eficiencia de sus operaciones, las diferentes áreas de su aplicación, y una aproximación de un mapa de implementación de RFID es discutida a continuación.RFID (Radio Frequency Identification) is considered one of the “hottest” technologies due to its particular capabilities to track and trace in real-time objects across the extended supply chain. This article gives an inside look at the RFID world in order to improve the level of understanding of this technology and the EPC Network. An introduction to RFID’s systems, RFID’s potential to improve the efficiency of operations, different areas of application, as well as a roadmap approach to undertake an RFID implementation will be discussed in this article

Impact of Radio-Frequency Identification (RFID) Technologies on the Hospital Supply Chain: A Literature Review

Supply costs account for more than one-third of the average operating budget and constitute the second largest expenditure in hospitals. As hospitals have sought to reduce these costs, radio-frequency identification (RFID) technology has emerged as a solution. This study reviews existing literature to gauge the recent and potential impact and direction of the implementation of RFID in the hospital supply chain to determine current benefits and barriers of adoption. Findings show that the application of RFID to medical equipment and supplies tracking has resulted in efficiency increases in hospitals with lower costs and increased service quality. RFID technology can reduce costs, improve patient safety, and improve supply chain management effectiveness by increasing the ability to track and locate equipment, as well as monitoring theft prevention, distribution management, and patient billing. Despite ongoing RFID implementation in the hospital supply chain, barriers to widespread and rapid adoption include significant total expenditures, unclear return on investment, and competition with other strategic imperatives

Healthcare RFID In Germany: An Integrated Pharmaceutical Supply Chain Perspective

Today’s healthcare environments are characterized by a variety of products, services, and associated data and information that are transferred across many healthcare sector participants. Pharmaceutical supply chains in particular are one example of fragmented information flows among supply chain participants. Pharmaceutical supply chain processes have a crucial influence on medication quality and ultimate patient outcomes. When manufacturing problems arise, temperature control cannot be maintained throughout the supply chain, counterfeit medications enter the supply chain, containers are damaged or sensitive medication is improperly transported and stored, the drugs’ effectiveness can be affected and this can result in serious consequences, including patient sickens or even death. In this paper, we analyze Radio Frequency Identification Technology (RFID), a technology that can improve communication of data and information, reduce counterfeiting, and enable monitoring of drug quality in pharmaceutical supply chains. The study is conducted in the context of an RFID platform implemented in Germany. The paper extends and complements previous studies by analyzing the RFID implementation and business value in an end-to-end supply chain process across multiple stakeholders in the pharmaceutical supply chain, from the manufacturer via the wholesaler to pharmacies and hospitals. The results confirm that RFID benefits are realized when supply chain processes are changed with the help of technology, but that different supply chain participants have different benefit realization perceptions. The analysis further reveals specific types of process changes for each supply chain participant and their corresponding benefits

The impact of inventory in service operations management in a South African warehouse

Abstract: Inventory is handled in different places, in the households, warehouses, stores, factories and service areas like banks and it is also controlled differently. However, across these diversity storages, there is the mutual problem of shrinkage. This research examine the impact of inventory loss in service operation management at Spar North Rand distribution. Experience has shown that even though inventory loss can be recognised to a few sources, such as, shoplifting, employee crime, seller fraud, administrative mistakes, there are still other unclear reasons. This study examined the impact of inventory loss in service operations management of warehouses with a view to preventing inventory loss for better productivity. In this study, the impact of inventory loss was measured using operational performance, drivers to effective inventory, inventory procedure and barriers to effective inventory. This paper adopted a quantitative research strategy. Using the five-point Likert scale, one hundred and fifty (150) Questionnaires were distributed to the employees at Spar North Rand distribution. 80.67 % questionnaires were completed, 5.3% was not returned, 4.67% where unusable, and 9.3% where returned uncompleted due to employees refusing to partake. Only 121 questionnaires were useable. The data were analysed using SPSS vision 24 to present and test the network of correlations between the variables. The results showed that there was a positive relationship (r = 0.510; p < 0.01) between operational performance and the drivers to effective inventory. From this research, it become evident that lack of training and lack of motivation such as recognition and incentives for staff acts as a huge negative impacts in service operations management. Insufficient training was identified as the main barrier, whereas lack of motivation was identified as the main driver to effective inventory management. Implementation of performance checklist was found to have the greatest impact to operational performance.M.Tech. (Operations Management