Classification of RFID adoption: An expected benefits approach

While expected benefits have been seen as one of the main drivers of RFID adoption, there is little understanding of what benefits should be considered when exploring RFID adoption. Further, the relationships between expected benefits and the type of adoption has not been systematically delineated. We identified cost savings, supply chain visibility, and new process creation as the three key benefits of RFID adoption and then identified the “scale” and “scope” of RFID implementation as the key dimensions of RFID adoption. Based on these, we proposed a four-category classification for the type of RFID adoption. Finally we showed how the three expected benefits are associated with the scale and scope of adoption. In particular, the findings highlighted the significant potential of RFID when it is integrated with other technologies such as global positioning or product life cycle management systems. Under various situations, a firm may perceive different benefits and value some benefits more than the others; this combination leads the firm to choose a certain type of RFID application. The model was validated using secondary case data from seven organizations that had adopted RFID.     

Does RFID improve firms’ financial performance? an empirical analysis

Radio frequency identification (RFID) is viewed as a technology that improves supply chain efficiency by enhancing inventory efficiency, optimizing logistics, and coordinating the flow of materials. Although RFID has gained great attention in many business applications, the financial gain that accrues over time from RFID adoption is not well understood. We examine the effects of RFID on firm profits while adjusting for self-selection of adoption choice. We find that firms self-select into a certain adoption mode on the basis of their organizational characteristics. Our results also show that RFID confers significant benefits for firms that have adopted RFID. Interestingly, improved inventory ratio and sales efficiency begin to play a greater role in shaping higher profitability over time for firms that have adopted RFID possibly due to time-consuming processes for them to reap the benefits from RFID. However, we find that the values of RFID that accrue to firms are not universal across firm. That is, our results suggest that RFID confers a significant value for certain firms while it does not for other firms with unobservable disadvantages. In sum, our study sheds new light on what drives firms to adopt RFID and on which firms achieve higher financial performance in a post-adoption period as a result of RFID adoption.     

Return on investment calculator for RFID ecosystem of high tech company

The use of RFID technology affords an opportunity for greater visibility in the supply chain and further supply chain automation, making the processes more streamlined, providing accurate and timely automatic data capture, thereby improving shipment reliability. This paper provides a case study of an RFID-enabled supply chain ecosystem focusing on a large high tech multi-national corporation based in Singapore. Specifically, the paper provides an implementation framework for the Return on Investment (ROI) calculator which trades off labor cost and productivity gains. The Supply Chain Operations Reference (SCOR) methodology is used to assess the operational level benefits of RFID implementation. We show how scalability is critical for RFID adoption.     

A balanced scorecard for item-level RFID in the retail sector: a Delphi study

Item-level Radio Frequency Identification (RFID) adoption is on the agenda for many retailers. However, before adopting this technology, managers need to be able to identify its direct and indirect benefits. These benefits are expected to be significant and have begun to be studied empirically and analytically in narrow, isolated segments (e.g., supply chain management). In this paper, we focus on applications of RFID in the retail sector, specifically in store operations. We have adapted the balanced scorecard (BSC) model as a decision-making framework to build a holistic model of RFID-enabled changes throughout retail store operations including marketing, merchandising, and supply chain management. After reviewing the existing literature, we conducted a Delphi study in which 10 consultants and senior managers from leading U.S. retailers were interviewed. The results indicate that benefits in the areas of merchandising and marketing may not be realized as directly as those in the supply chain, but their effects should not be underestimated. The proposed BSC model can also indicate potential opportunities for item-level RFID use in retailing and serve as a guideline for further studies.     

Innovationspotenzial von RFID für das Supply-Chain-Management

RFID (Radio Frequency Identification) supports Supply-Chain-Management processes through automated identification and data acquisition. Hence it is an enabler for seamless integration of physical resources with IT-systems. On the example of the automotive industry this article shows how the supply chain can benefit from the integration of physical resources, how companies can proceed with the adoption of RFID and what critical success factors they must consider. A higher degree of integration and automation improves process efficiency and quality, which reduces manual labour and failure costs. Case studies show that these cost savings can justify the investment in RFID systems. Companies can adopt RFID step by step in order to minimize their investment risk and to achieve an efficient degree of integration. Before they start with the implementation of RFID systems, they should determine their own need and consider economic and technical requirements. The dynamic of technology and the market will simultaneously favour the expansion of RFID in Supply-Chain-Management applications.     

Analytical model of adoption of item level RFID in a two-echelon supply chain with shelf-space and price-dependent demand

We investigate whether it is possible for the manufacturer as well as the retailer to derive economic benefits from item-level RFID. We consider two supply chain contracts. In the first instance the manufacturer sets the wholesale price for his product and in response the retailer sets the retail price and allocates the shelf-space. We find that in this setting item-level RFID is adopted in a decentralized supply chain at the same levels of RFID costs as in an integrated supply chain with a single decision maker. The second case that we consider involves a powerful retailer setting product shelf-space prices. In this setting the manufacturer essentially rents shelf-space from the retailer. We find that in this setting, the retailer may force the adoption of RFID even if it does not maximize the chain's total profit.     

基于零售商资金约束供应链采用RFID技术的决策及融资分析

为研究零售商存在资金约束和库存错放时,供应链成员采用无线射频识别(radio frequency identification,RFID)技术及融资决策的均衡问题,以单制造商和单资金约束零售商组成的两级供应链为研究对象,基于报童模型构建供应链成员采用RFID技术前后零售商是否融资4种情景下的收益模型,求解出相应的最优解并探讨供应链成员RFID采用决策与零售商的融资策略.研究发现:当零售商的自有资金适中时,供应链成员采用RFID技术一定程度上能够缓解零售商的资金约束;零售商选择融资时,供应链及其成员能够承担更高的RFID成本;零售商分摊RFID固定成本的比例对制造商、零售商和供应链能够承担的RFID标签成本阈值有决定性的影响.     

A contingency model for creating value from RFID supply chain network projects in logistics and manufacturing environments

In the growing literature on RFID and other network technologies, the importance of organizational transformation at the supply chain level has been recognized. However, the literature lacks conceptual model development and salient mechanisms for achieving the level of organizational transformation required for stakeholders to realize the full business benefits from RFID projects. Furthermore, the RFID adoption, use, and impact studies to date largely focus on a single firm setting and on the retail sector. Therefore, this study intends to fill this knowledge gap in the literature, and develops a contingency model for creating value from RFID supply chain projects in logistics and manufacturing environments. For our model development, we draw upon extant diverse literatures, particularly the framework for IT-enabled business transformation, and leadership and organizational learning. The framework postulates a positive relationship between the level of organizational transformation effected by the use of information technology (IT) and the level of business benefits realized from IT. The contingency model draws on the framework, and explicates five contingency factors influencing value creation from RFID supply chain projects: environmental upheaval; leadership; second-order organizational learning; resources commitment; and organizational transformation. Using the contingency model as a conceptual guide, we also perform an analysis of longitudinal real-world case data from a Canadian third-party logistics service firm's seven-layer supply chain RFID projects. The case study analysis provides evidence for the imperative of the contingency factors identified in the model for creating value from the RFID projects. Furthermore, it also reveals the differential costs for the focal firm and the up-stream manufacturing as a key barrier to realizing the full RFID benefits at the supply chain level.     

RFID: a technical overview and its application to the enterprise

Radio frequency identification (RFID) offers tantalizing benefits for supply chain management, inventory control, and many other applications. Only recently, however, has the convergence of lower cost and increased capabilities made businesses take a hard look at what RFID can do for them. This article offers an RFID tutorial that answers the following questions: i) what is RFID, and how does it work? ii) What are some applications of RFID? iii) What are some challenges and problems in RFID technology and implementation? iv) How have some organizations implemented RFID?.     

零售商定价/订货决策下竞争/互补制造商采用RFID的策略研究

以一个零售商主导的两级供应链为研究对象,构建两个生产竞争性或互补性产品的制造商是否采用无线射频识别技术(radio frequency identification,RFID)时链上成员的收益模型,分析求解出各种情景下零售商定价/订货决策时制造商的最优批发价和RFID标签成本分摊系数,以及零售商的最优零售价/订货量,进...     

The impact of RFID technology on warehouse process innovation: A pilot project in the TPL industry

Using the value chain model which provides a process view, this longitudinal case study and simulation modeling analysis of a Canadian third-party logistics (TPL) supply chain provides some empirical support for the enabling role of RFID technology in effecting warehouse process innovation and optimization for the focal TPL firm. However, the findings of our study also reveal the RFID technology implementation costs as the key inhibitor of RFID widespread adoption and usage among suppliers. This, in turn, precluded the focal TPL firm from implementing the best optimum RFID solution to create better business value from the RFID project.     

Myths about outsourcing to application service providers

Which applications are organizations outsourcing to ASPs? What did they hope to gain? And what are the critical success factors for organizations using ASPs? To assess these issues we cosponsored a study to assess organizational attitudes and adoption metrics for ASPs. Our survey garnered 256 usable responses from businesses regarding their use of ASPs. The study indicated that a significant number of respondents believed ASPs offer a fast-track way of implementing IT projects. However, 80 percent also favored internal implementation for core IT projects, which suggests that other factors still present a substantial barrier to ASP adoption. Nevertheless, companies are outsourcing some core applications - such as supply chain management and e-commerce - and several non-core applications. This outsourcing implies that companies perceive a significant benefit to ASP adoption. The message for users is unambiguous: to succeed, understand how Internet outsourcing works for your company, benchmark against successful ASP adopters, and establish a common criterion for evaluating an ASP     

An e-patient’s End-user community (EUCY): The value added of social network applications

Decreasing revenues and increasing expenses has led many healthcare organizations to adopt newer technological applications in order to address the informational needs of their patients. One such adoption technique is to develop a more robust e-patient environment. Health care organizations may increase their effectiveness in meeting the needs of a growing e-patient population through the implementation of high-quality social networking applications such as Twitter. These applications may help to support and maintain a valuable and informed community. A literature review identifies three characteristics that have an impact on information exchange inherent to social networks: number of members, contact frequency, and type of knowledge. Data from a case study of a juvenile diabetic using Twitter helps to demonstrate these aforementioned characteristics. A framework is developed that may be used by health care organizations to better align social network objectives with expectations of an End user community (EUCY). Managerial implications of this study are discussed that can help information technology professionals as well as health administrators when implementing social networks.     

Enterprise systems and demand chain management: a cross-sectional field study

Increased product variety, compressed cycle times, supply chain network based competition and the uncertainty in business environment are forcing organizations to shift their emphasis towards demand chain management. Though enterprise systems and supply chain management software solutions are well in place in most of the large enterprises in Australia, their ability to support demand chain management approach is not yet known. This paper investigates the adoption of demand chain management in Australian organizations using cross-sectional qualitative field study. It found that the adoption is limited despite the organizational capabilities and sound digital platforms. Standardization, integration, visibility and control of processes and information, enabled by enterprise systems, are helping the organizations in improving their ability to sense and shape market demand and customer needs, and build agility into their decision making processes. Attempts to synchronise operating and finance cycles and collecting market intelligence and sharing of that across the supply chain are some of the initiatives that have started showing benefits. Adopting the demand chain management initiatives such as establishment of market intelligence mechanism, building agility into decision making processes, sophisticated usage of optimization tools embedded in software solutions, and process frameworks such as Supply Chain Operations Reference are helping organizations to achieve both agility and control simultaneously.     

Technology, Standards, and Real-World Deployments of the EPC Network

The EPC Network is a global RFID data sharing infrastructure based on standards that are built around the Electronic Product Code (EPC), an unambiguous numbering scheme for the designation of physical goods. The authors present the fundamental concepts and applications of the EPC Network, its integration with enterprise systems, and its functionality for data exchange between organizations in the supply chain.     

Adoption of RFID technologies in UK logistics: Moderating roles of size,barcode experience and government support

Due to globalization, logistics has become an important part in the supply chain. Many logistics service providers have realised the importance of adoption of technologies that can help manufacturers, warehouses, and retailers to communicate with each other more efficiently. Among many logistics technologies, radio frequency identification (RFID) has been identified as an important technology to improve logistics operations and supply chain management, and thus is increasingly gaining both practitioners’ and researchers’ attention. The purpose of this study is to identify the impact of usability features of RFID in the adoption of the technology by the logistics sector in the UK. We have used questionnaire survey method to collect data from the UK logistics firms. The analysis of the data shows that the usability of RFID technology positively influences adoption of technology. We have further tested the moderating effects of firm size, experience with barcode use, and government support in adopting RFID. Our results show that government support strongly moderates the link between usability of RFID and its adoption but size and experience with barcode do not moderate this link. We elaborate the contributions of the study and managerial implications of our results in this paper.     

A hierarchical model of the impact of RFID practices on retail supply chain performance

The primary purpose of this study was to evaluate the impact of radio frequency identification (RFID) practices on supply chain performance. We examined eight variables of RFID applications grouped in two categories: location (supplier’s warehouse, retailer’s central warehouse, retailer’s local warehouse, retailer’s owned stores) and utilisation (standards, transportation, pallet level, specialised software). Given the inherent difficulty in assessing supply chain performance and the widespread use of different performance models, such as the SCOR and balanced scorecard, we developed a list of performance indicators. Factor analysis produced 7 supply chain performance factors: supplier, inventory, distribution, ordering, plan, sales, and forecasting.Empirical data were collected via an online survey administered to 300 retail companies. 130 usable questionnaires were returned, for a 43.3% response rate. To the best of our knowledge, this is the first study to provide an analytical model that places supply chain performance indicators as dependent variables in a hierarchical regression equation with RFID variables as independent variables. Results found that the implementation of RFID practices significantly affect the supply chain performance in the following areas: supplier, inventory, distribution, plan, sales, and forecasting. RFID can improve the performance of distribution systems, including products dispatched and inventory in transit by 33.8% and stock availability by 45.6%. This study contributes to both the RFID and the supply chain performance literatures. Limitations and suggestions for further research are also discussed.     

Costs of authentic pharmaceuticals: research on qualitative and quantitative aspects of enabling anti-counterfeiting in RFID-aided supply chains

The pharmaceutical industry suffers from steadily increasing counterfeit rates. RFID technology is named as a foundation for an integer and counterfeit-resistant pharmaceutical supply chain. A transformation toward an RFID-aided supply chain involves both technical and business adaptions. We share technical insights of our proposed architecture for storing and searching pharmaceutical RFID event data. From the business perspective, we discuss the viability of RFID-based anti-counterfeiting with respect to its monetary impacts. We define qualitative requirements for software components developed for RFID and provide a quantitative analysis of operational costs for a dedicated service provider for anti-counterfeiting. Its implementation and amortization is discussed for different operating setups to enable access to RFID technology for all participants of pharmaceutical the supply chain     

Automotive e-hubs: Exploring motivations and barriers to collaboration and interaction

Business-to-business electronic marketplaces or ‘e-hubs’ `are increasingly being adopted by organizations seeking to achieve dramatic reductions in cost. While initially heralded in such industries as the automotive sector as the key to restructuring old economy firms, the claims for e-hubs appear optimistic. This paper explores collaboration and interaction by examining four cases of e-hub adoption by vehicle manufacturers and suppliers. A conceptual framework emerges from this examination that helps to assess the real benefits of electronic applications—not the hyperbole—by revealing firm and industry level motivations and barriers. The framework explains the dissonance between expected and realised benefits, and extends the literature on IS barriers. The investigation concludes with recommendations for how best to adopt e-hubs in terms of supply topology, buyer–supplier relationships, leadership, and the threat of disbenefit from e-hubs.     

The impact of EDI implementation commitment and implementation success on competitive advantage and firm performance

Abstract. Electronic Data Interchange Systems (EDI) are increasingly being used by business firms to improve operations and customer service. One of the major motivations for business organizations using EDI is to gain a strategic advantage in the marketplace. Although EDI has been implemented by many organizations, unfortunately not all have gained the same level of expected advantage or envisioned benefits.
In this study we focus on the impact of EDI implementation commitment and implementation success on competitive advantage and firm performance. We study two categories of companies: companies that initiate the development of EDI and are known as hub companies and those that are their non-hub counterparts. Findings indicate that non-hub firms may not reap the same level of expected benefits resulting from EDI technology adoption and implementation as hub firms.