Samir dani provides a concise but important outlook on the connection between business strategy and supply chain strategy. Supply chain management scm is an important part of every organization, whether small or large. Warehouse management with lean and rfid application. The conceptual model presented in this paper can provide insights for executives who wish to implement erp or rfid systems in their businesses in order to achieve higher integration within internal sectors and with supply chain. Effectiveness and efficiency of rfid technology in supply chain management.
Effects of the rfid mandate on supply chain management. This research presents the integration of lean production and radiofrequency identification rfid technology to improve the efficiency and effectiveness of warehouse management. Rfid for the supply chain rfid sc is an emerging technological trend that has attracted a lot of attention in the u. Calculating the return on investments, the impact levels of rfid on these factors should be quantified accurately for each supply chain member. Six key trends changing supply chain management today. Potential of rfid in the supply chain rfid journal. Top 10 strategic technology trends for 2018 supply chain 247. A guide to selection and implementation explains rfid technology, its applications in scm, data storage and retrieval, business processes, operational and implementation problems, risks, security and privacy, facility layout, handling systems and methods, and. Impact of technology on logistics and supply chain management.
The implementation of rfid throughout the supply chain of a fashion retailing. Strategic supply chain management case rfid by group l. Measured progress the rfid market is showing signs of steady growth as companies work to achieve a meaningful return on investment in specific areas of given processes. For analyzing a company situation, value chain analysis system is one of the most important strategic management models. The company management has to decide on the strategic supply chain policies with regards to suppliers. Information technology in supply chain management article pdf available in journal of supply chain management 33. Apr 22, 2015 with computerized product management, rfid chips and a barcode system provide increased visibility that can substantially improve your supply chain efficiency by detecting any order anomalies as they occur enabling employees to immediately correct mistakes and reduce errors. Well applied, rfid technology can change the way they do business, contribute to the improvement of services, better. The supply chain management is the oversight of materials, information and finances as they move in the process from supplier to manufacturer to wholesaler to retailer to customer. Our results underscore the importance of strategic information management actively managing the supply chains information flows, and making tradeoffs with material flows where appropriate, in order to maximize profits. This is the second of a twopart article on performance measurement, and continuation of our series on the future of the strategic supply chain by steven a. Rfid radio frequency identification is a form of extremely lowpower data communication between a rfid scanner and an rfid.
Finally, cost is not the only element of a supply chain s performance, as well discuss later. An increasingly popular supply chain management tool, realtime alerts provide timely information on all shipping activities. Rfid, supply chain management, efficiency, strategic benefits, challenges introduction radio frequency identification rfid is one of the newly emerging wireless technologies that has great potential in improving efficiencies and effectiveness in supply chain solving problems. Effectiveness and efficiency of rfid technology in supply. Part 1 appeared in the november 2019 issue of supply chain management. In other words, rfid can facilitate to develop an integrated supply and demand chain or an integrated value chain in which one uses the technology to drive revenues and innovation and create valuenotjustto reduce cost, and to gain strategic advantage. Tajima 2007 suggests that adopting rfid in supply chain management may reduce management costs and increase the efficiency of product flows. Walmart excels in terms of speed and cost by locating all domestic stores within one days drive of a warehouse while owning a trucking fleet. These examples show that the benefits of rfid in logistics go well beyond that to control the movement and storage of materials throughout the supply chain. Big data and rfid in supply chain and logistics management.
We identify current trends in the literature, drawing on the three levels of decision making, that is, strategic, tactical, and operational. In this article, we make an analysis if the value chain. The main purpose of the healthcare supply chain is to. Discuss the importance of rfid for supply chain management. As the literature on rfid is not confined to specific disciplines or repositories, this paper proposes a disciplinebased framework for classifying rfid literature. Strategic value of rfid for interfirm supply chain. Oct 27, 2004 the scor model for supply chain strategic decisions october 27, 2004 scrc sme the supply chain operations reference model scor is a management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company 1. The recent publicity of radio frequency identification rfid and its use in supply chain management has created awareness among businesses. Challenges and benefit analysis of adopting rfid in supply chain. Download citation strategic value of rfid in supply chain management at present, a gap exists between the actual and potential values of radio frequency. Hence, this study empirically identifies the reciprocal strategic value of rfid implementation in interfirm, supply chain networks based on the resourcebased theory and social capital theory. Rfid radio frequency identification is a form of extremely lowpower data communication between a rfid scanner and an rfid tag. The conceptual model presented in this paper can provide insights for executives who wish to implement erp or rfid systems in their businesses in order to achieve higher integration within internal sectors and with supply chain partners.
In detail, the essay will discuss its formats, international expansion, low price policy, cost control, loyalty card strategy, supply chain management, delivery system management, managing capacity and inventory management. The scor model for supply chain strategic decisions scm. Cool chain group cool chain rfid priority objectives. Strategic value of rfid in supply chain management, 2007. Critical success factors and challenges of implementing rfid in supply chain management journal of supply chain and operations management, volume 10, number 1, february 2012 145 rfid implementation. Although many people equate the supply chain with logistics, logistics is actually just one component. Supply chain management is the flow of services or goods. Pdf information technology in supply chain management. Abstract traditional radiofrequency identification rfid applications have been focused on replacing bar codes in supply chain management. Briefly, where the supply chain management is trated as strategic part of a company then maintaining both control and influence throughout the entire supply chain.
Firms must face the need to manage these increasing expectations head on as the standard way of doing business to survive. The value of strategic supply chain management is reflected in how firms such as walmart have used their supply chains as competitive weapons to gain advantages over peers. This paper provides insight into the strategic value of rfid by building a theory on how rfid used in supply chain management may create and sustain a competitive advantage. Mohsen attaran critical success factors and challenges of. Strategic value of rfid in supply chain management. As the rfid adds value to products and services in the logistics chain. May 20, 2015 while automation is a process which can navigate product throughout facilities, rfid can improve efficiency dramatically as well as being the major driver for the elimination of human involvement in the supply chain. A well thoughtout supply chain network design can optimize the network and the. Radio frequency identification also knows as rfid is an integrated circuit technology which is used to transmit data through radio waves to the reader.
Radio frequency identification also knows as rfid is an integrated circuit technology which. The healthcare supply chain involves the flow of many different product types and the participation of several stakeholders. Handheld rfid readers can scan large quantities of items simultaneously in a wide or narrow target field. Four propositions are developed based on a theory of organisational learning and the theory of firstmover advantages.
Furthermore, this study attempts to demonstrate a relationship between the critical implementation factors of rfid and the benefits gained. Pdf strategic supply chain and logistics donia adel. Disertation paper on management, marketing management, supply chain management, pdf operations management sustainability and supply chain management. The pros and cons of rfid in supply chain management. Scm is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage, according to robert handfield, ph. Aug 08, 2016 as traditional supply chains are increasingly becoming intelligent with more objects embedded with sensors and better communication, intelligent decision making and automation capabilities, the new smart supply chain presents unprecedented opportunities for achieving cost reduction and enhancing efficiency improvement. Rfid for the supply chain rfidsc is an emerging technological trend that has attracted a lot of attention in the u. Additionally, mutual quality constructs of rfid system from an interorganizational context are investigated as determinants of the strategic value. Strategic supply chain management introduces concepts and tools which will enable successful buyersupplier relationships and effective organizational leadership and talent management. Are your performance measurements destroying your supply.
We hear and read a great deal of information in our supply chain profession about strategic. Heizer and render principles of operations management sustainability and supply chain management 10th edition pdf strategic logistics management a supply chain. In recent years, academic researchers have recognised the importance of closing this gap, but the existing studies have not yet explicitly dealt with competitiveness. Case analysis group l rfid at anamay jii, bhupesh doda, hardik shah, nidhi garg, prachi agarwal, rahul dua, sangey r, suhas m. It may improve the potential benefits of supply chain management through increase of the four factors.
The potential benefits that rfid is perceived to bring to. Opportunities for the use of rfid in the supply chain. Rfid and erp systems in supply chain management emerald insight. Total operation time can be saved by 81% using lean production and rfid. The right supply chain design is critical to managing the changes brought about by rapid globalization. Oct 15, 2019 the rate of amazons innovations in supply chain management has been mesmerizing, making it difficult for lowervolume competitors to keep up. The strategic importance of supply chain management. Effectiveness and efficiency of rfid technology in supply chain. The findings in this study contribute to the theory base by linking the concept of information technologies, ess to scm.
Major retailers and their suppliers are already tagging pallets, cases and other returnable transport items rtis like plastic crates used for fresh foods. Rfid for supply chain management has the capacity to significantly improve global logistic chains and increase overall efficiency by automating the identification processes. Engel, vice president project services the procurement centre 76230111 ext. Supply chain strategy and vision, which defines the role supply chain management will have in the organization and in the pursuit of the business strategy. Strategic value of rfid in supply chain management at present, a gap exists between the actual and potential values of radio frequency identification rfid technology in industry. Highlights this research applies lean production and rfid technology to a supply chain. The pros and cons of rfid in supply chain management abstract this paper presents the pros and cons of using radiofrequency identification rfid in supply chain management scm. In doing so, network design captures the costs of the supply chain. At the most fundamental level, supply chain management scm is management of the flow of goods, data, and finances related to a product or service, from the procurement of raw materials to the delivery of the product at its final destination. As the literature on rfid is not confined to specific disciplines or repositories, this paper proposes a disciplinebased framework for classifying rfid.
Value chain analysis in strategic management is undertaken to evaluate a companys value chain elements. Amazon is forcing its major competitors to invest more in supply chain automation, lessen the overall product delivery time, increase the number of warehouses, and even engage in product manufacturing. Strategic value of rfid in supply chain management researchgate. Insourcingoutsourcing strategy, which goes to the heart of the firms value propositionwhat is it that the firm does better than anyone elseto create value for the customer.
Calculating the return on investments, the impact levels of rfid on these factors should be quantified accurately for each supply chain. Supply chain management key factors free download abstract this paper exposes supply chain management by its key factors. Strategic value creation in a supply chain hi, with more interaction among the supply chain partners, appears to be a more appr opriate choice for business due to its collaborationfr iendly setting. Originality value the paper shows that ssp theory can be extended beyond the firm to the. Analyzing and evaluating critically tescos current. However, the implementation of rfid in value chains may require. Vaid yanathan, efficienc y of rfid in supply chain management. Rfid, process, effectiveness, efficiency, supply chain management, values, strategy. Scm also deals with the movement and storing of materials needed to create a product, as well as inventory management. While rfid has a greater number of benefits than its predecessor, the bar code, it currently comes at a price that many businesses still consider prohibitive. Why healthcare needs valuebased supply chain management. Strategic alignment is a necessary precursor to deployment of an effective supply chain structure. Pdf effectiveness and efficiency of rfid technology in.
Leveraging a ubiquitous computing architecture, the chapter presents a framework allowing both quick decentralized online item discovery and centralized offline massive business logic analysis, according to needs and requirements of supply chain. Strategic values and challenges asghar sabbaghi1 and ganesh vaidyanathan2 indiana university south bend, school of. Retailers struggle with supply chains under stress. More specifically six areas of rfid applications are clearly emerging in the health care sector to enable a safe and secure health care supply chain 19, namely. A hierarchical model of the impact of rfid practices on retail supply.
Reducing the purchasing spend for a company can directly relate to an increase. Strategic value of rfid for interfirm supply chain networks. Supply chain management with lean production and rfid. Insourcingoutsourcing strategy, which goes to the heart of the firms value propositionwhat is it that the firm does better than anyone elseto create value. Home browse by title periodicals journal of theoretical and applied electronic commerce research vol. Supply chain management in public sector procurement. Such technology also allows for easier, more consistent tracking. Other dimensions must be considered and balanced when designing the supply chain. The emerging new technologies are creating strategic opportunities for the organizations to build. In doing so, network design captures the costs of the supply chain with a total landed cost perspective.
Using rfid to improve hospital supply chain management for. Value stream mapping is used to draw current and future state mapping. Rfid and erp systems in supply chain management emerald. Supply chain management in healthcare should ensure complete endtoend visibility of information among suppliers, manufacturers, distributors and customers. Understanding your value chain, and how china fits into it, can lead to tremendous tax savings.