Implementation challenges of application of radio frequency identification (RFID) in warehouse

Warehouse is an essential component in the supply chain, linking the chain partners and providing them with functions of product storage, inbound and outbound operations along with value-added processes. Allocation of warehouse resources should be efficient and effective to achieve optimum productivity and reduce operational costs. Radio frequency identification (RFID) is a technology capable of providing real-time information about supply chain operations. It has been used by warehousing and logistic enterprises to achieve reduced shrinkage, improved material handling and tracking as well as increased accuracy of data collection. However, both academics and practitioners express concerns about challenges to RFID adoption in the supply chain. This paper provides a comprehensive analysis of the problems encountered in RFID implementation at warehouses, discussing the theoretical and practical adoption barriers and causes of not achieving full potential of the technology. Lack of foreseeable return on investment (ROI) and high costs are the most commonly reported obstacles. Variety of standards and radio wave frequencies are identified as source of concern for decision makers. Inaccurate performance of the RFID within the warehouse environment is examined. Description of integration challenges between warehouse management system and RFID technology is given. The paper discusses the existing solutions to technological, investment and performance RFID adoption barriers. Factors to consider when implementing the RFID technology are given to help alleviate implementation problems. By illustrating the challenges of RFID in the warehouse environment and discussing possible solutions the paper aims to help both academics and practitioners to focus on key areas constituting an obstacle to the technology growth. As more studies will address these challenges, the realisation of RFID benefits for warehouses and supply chain will become a reality.

Enhancing competitive advantage with radio-frequency identification (RFID) enabled returnable transport equipment (RTE)

Fierce competition within the third party logistics (3PL) market has developed as providers compete to win customers and enhance their competitive advantage through cost reduction plans and creating service differentiation. 3PL providers are expected to develop advanced technological and logistical service applications that can support cost reduction while increasing service innovation. To enhance competitiveness, this paper proposes the implementation of radio-frequency identification (RFID) enabled returnable transport equipment (RTE) in combination with the consolidation of network assets and cross-docking. RFID enabled RTE can significantly improve network visibility of all assets with continuous real-time data updates. A four-level cyclic model aiding 3PL providers to achieve competitive advantage has been developed. The focus is to reduce assets, increase asset utilisation, reduce RTE cycle time and introduce real-time data in the 3PL network. Furthermore, this paper highlights the need for further research from the 3PL perspective. Copyright © 2013 Inderscience Enterprises Ltd.

Radio frequency identification and time-driven activity based costing:RFID-TDABC application in warehousing

Purpose: This paper extends the use of Radio Frequency Identification (RFID) data for accounting of warehouse costs and services. Time Driven Activity Based Costing (TDABC) methodology is enhanced with the real-time collected RFID data about duration of warehouse activities. This allows warehouse managers to have accurate and instant calculations of costs. The RFID enhanced TDABC (RFID-TDABC) is proposed as a novel application of the RFID technology. Research Approach: Application of RFID-TDABC in a warehouse is implemented on warehouse processes of a case study company. Implementation covers receiving, put-away, order picking, and despatching. Findings and Originality: RFID technology is commonly used for the identification and tracking items. The use of the RFID generated information with the TDABC can be successfully extended to the area of costing. This RFID-TDABC costing model will benefit warehouse managers with accurate and instant calculations of costs. Research Impact: There are still unexplored benefits to RFID technology in its applications in warehousing and the wider supply chain. A multi-disciplinary research approach led to combining RFID technology and TDABC accounting method in order to propose RFID-TDABC. Combining methods and theories from different fields with RFID, may lead researchers to develop new techniques such as RFID-TDABC presented in this paper. Practical Impact: RFID-TDABC concept will be of value to practitioners by showing how warehouse costs can be accurately measured by using this approach. Providing better understanding of incurred costs may result in a further optimisation of warehousing operations, lowering costs of activities, and thus provide competitive pricing to customers. RFID-TDABC can be applied in a wider supply chain.

An agent approach to improving radio frequency identification enabled Returnable Transport Equipment

Returnable transport equipment (RTE) such as pallets form an integral part of the supply chain and poor management leads to costly losses. Companies often address this matter by outsourcing the management of RTE to logistics service providers (LSPs). LSPs are faced with the task to provide logistical expertise to reduce RTE related waste, whilst differentiating their own services to remain competitive. In the current challenging economic climate, the role of the LSP to deliver innovative ways to achieve competitive advantage has never been so important. It is reported that radio frequency identification (RFID) application to RTE enables LSPs such as DHL to gain competitive advantage and offer clients improvements such as loss reduction, process efficiency improvement and effective security. However, the increased visibility and functionality of RFID enabled RTE requires further investigation in regards to decision‐making. The distributed nature of the RTE network favours a decentralised decision‐making format. Agents are an effective way to represent objects from the bottom‐up, capturing the behaviour and enabling localised decision‐making. Therefore, an agent based system is proposed to represent the RTE network and utilise the visibility and data gathered from RFID tags. Two types of agents are developed in order to represent the trucks and RTE, which have bespoke rules and algorithms in order to facilitate negotiations. The aim is to create schedules, which integrate RTE pick‐ups as the trucks go back to the depot. The findings assert that: - agent based modelling provides an autonomous tool, which is effective in modelling RFID enabled RTE in a decentralised utilising the real‐time data facility. ‐ the RFID enabled RTE model developed enables autonomous agent interaction, which leads to a feasible schedule integrating both forward and reverse flows for each RTE batch. ‐ the RTE agent scheduling algorithm developed promotes the utilisation of RTE by including an automatic return flow for each batch of RTE, whilst considering the fleet costs andutilisation rates. ‐ the research conducted contributes an agent based platform, which LSPs can use in order to assess the most appropriate strategies to implement for RTE network improvement for each of their clients.

Maximising the efficiency of logistics operations with radio frequency identification technology

Radio frequency identification (RFID) technology has gained increasing popularity in businesses to improve operational efficiency and maximise costs saving. However, there is a gap in the literature exploring the enhanced use of RFID to substantially add values to the supply chain operations, especially beyond what the RFID vendors could offer. This paper presents a multi-agent system, incorporating RFID technology, aimed at fulfilling the gap. The system is developed to model supply chain activities (in particular, logistics operations) and is comprised of autonomous and intelligent agents representing the key entities in the supply chain. With the advanced characteristics of RFID incorporated, the agent system examines ways logistics operations (i.e. distribution network) particular) can be efficiently reconfigured and optimised in response to dynamic changes in the market, production and at any stage in the supply chain. © 2012 IEEE.

Radio frequency identification and its application in e-commerce

This chapter presents Radio Frequency Identification (RFID), which is one of the Automatic Identification and Data Capture (AIDC) technologies (Wamba and Boeck, 2008) and discusses the application of RFID in E-Commerce. Firstly RFID is defined and the tag and reader components of the RFID system are explained. Then historical context of RFID is briefly discussed. Next, RFID is contrasted with other AIDC technologies, especially the use of barcodes which are commonly applied in E-Commerce. Lastly, RFID applications in E-Commerce are discussed with the focus on achievable benefits and obstacles to successful applications of RFID in E-Commerce, and ways to alleviate them.

A decision support system for waste collection management and its potential improvement with Radio-Frequency Identification Technology (RFID)

Due to vigorous globalisation and product proliferation in recent years, more waste has been produced by the soaring manufacturing activities. This has contributed to the significant need for an efficient waste management system to ensure, with all efforts, the waste is properly treated for recycling or disposed. This paper presents a Decision Support System (DSS) framework, based on Constraint Logic Programming (CLP), for the collection management of industrial waste (of all kinds) and discusses the potential employment of Radio-Frequency Identification Technology (RFID) to improve several critical procedures involved in managing waste collection. This paper also demonstrates a widely distributed and semi-structured network of waste producing enterprises (e.g. manufacturers) and waste processing enterprises (i.e. waste recycling/treatment stations) improving their operations planning by means of using the proposed DSS. The potential RFID applications to update and validate information in a continuous manner to bring value-added benefits to the waste collection business are also presented. © 2012 Inderscience Enterprises Ltd.

A Conceptual Foresight Model to Investigate the Adoption of Radio Frequency Identification Technology in the English National Health Service

Radio Frequency Identification Technology (RFID) adoption in healthcare settings has the potential to reduce errors, improve patient safety, streamline operational processes and enable the sharing of information throughout supply chains. RFID adoption in the English NHS is limited to isolated pilot studies. Firstly, this study investigates the drivers and inhibitors to RFID adoption in the English NHS from the perspective of the GS1 Healthcare User Group (HUG) tasked with coordinating adoption across private and public sectors. Secondly a conceptual model has been developed and deployed, combining two of foresight’s most popular methods; scenario planning and technology roadmapping. The model addresses the weaknesses of each foresight technique as well as capitalizing on their individual, inherent strengths. Semi structured interviews, scenario planning workshops and a technology roadmapping exercise were conducted with the members of the HUG over an 18-month period. An action research mode of enquiry was utilized with a thematic analysis approach for the identification and discussion of the drivers and inhibitors of RFID adoption. The results of the conceptual model are analysed in comparison to other similar models. There are implications for managers responsible for RFID adoption in both the NHS and its commercial partners, and for foresight practitioners. Managers can leverage the insights gained from identifying the drivers and inhibitors to RFID adoption by making efforts to influence the removal of inhibitors and supporting the continuation of the drivers. The academic contribution of this aspect of the thesis is in the field of RFID adoption in healthcare settings. Drivers and inhibitors to RFID adoption in the English NHS are compared to those found in other settings. The implication for technology foresight practitioners is a proof of concept of a model combining scenario planning and technology roadmapping using a novel process. The academic contribution to the field of technology foresight is the conceptual development of foresight model that combines two popular techniques and then a deployment of the conceptual foresight model in a healthcare setting exploring the future of RFID technology.

Impact of RFID in reverse logistics

This paper aims to discuss the recent literature on Radio Frequency Identification (RFID) and reverse logistics (RL). Particular attention is applied to the bullwhip effect and its increase as RL activities are integrated into the supply chain. RFID is investigated as a tool to assist with integrating reverse and forward logistics into a seamless supply chain and reduce the bullwhip effect. However, further research is required within this area and in particular the return on investment for RFID-enabled integrated systems.

Using RFID-RTE to increase efficiency in the supply chain

This paper aims to explore the application of Radio Frequency Identification (RFID) to Returnable transit equipment (RTE) in the supply chain. Particular attention is applied to the current structures of RTE networks as formulated by RTE providers. The problems related to RTE usage are described and the effect to the network analyzed. RFID is investigated as a tool to assist with the movement of the RTE both from the client’s and RTE provider’s point of view.

RFID in the warehouse:a literature analysis (1995-2010) of its applications, benefits, challenges and future trends

Radio Frequency Identification (RFID) has been identified as a crucial technology for the modern 21st century knowledge-based economy. Some businesses have realised benefits of RFID adoption through improvements in operational efficiency, additional cost savings, and opportunities for higher revenues. RFID research in warehousing operations has been less prominent than in other application domains. To investigate how RFID technology has had an impact in warehousing, a comprehensive analysis of research findings available from articles through leading scientific article databases has been conducted. Articles from years 1995 to 2010 have been reviewed and analysed with respect to warehouse operations, RFID application domains, benefits achieved and obstacles encountered. Four discussion topics are presented covering RFID in warehousing focusing on its applications, perceived benefits, obstacles to its adoption and future trends. This is aimed at elucidating the current state of RFID in the warehouse and providing insights for researchers to establish new research agendas and for practitioners to consider and assess the adoption of RFID in warehousing functions. © 2013 Elsevier B.V.

Design and development of logistics workflow systems for demand management with RFID

This paper discusses demand and supply chain management and examines how artificial intelligence techniques and RFID technology can enhance the responsiveness of the logistics workflow. This proposed system is expected to have a significant impact on the performance of logistics networks by virtue of its capabilities to adapt unexpected supply and demand changes in the volatile marketplace with the unique feature of responsiveness with the advanced technology, Radio Frequency Identification (RFID). Recent studies have found that RFID and artificial intelligence techniques drive the development of total solution in logistics industry. Apart from tracking the movement of the goods, RFID is able to play an important role to reflect the inventory level of various distribution areas. In today’s globalized industrial environment, the physical logistics operations and the associated flow of information are the essential elements for companies to realize an efficient logistics workflow scenario. Basically, a flexible logistics workflow, which is characterized by its fast responsiveness in dealing with customer requirements through the integration of various value chain activities, is fundamental to leverage business performance of enterprises. The significance of this research is the demonstration of the synergy of using a combination of advanced technologies to form an integrated system that helps achieve lean and agile logistics workflow.

A three-level RFID-based automation approach to enhance network competitiveness

Today, the question of how to successfully reduce supply chain costs whilst increasing customer satisfaction continues to be the focus of many firms. It is noted in the literature that supply chain automation can increase flexibility whilst reducing inefficiencies. However, in the dynamic and process driven environment of distribution, there is the absence of a cohesive automation approach to guide companies in improving network competitiveness. This paper aims to address the gap in the literature by developing a three-level framework automation application approach with the assistance of radio frequency identification (RFID) technology and returnable transport equipment (RTE). The first level considers the automation of data retrieval and highlights the benefits of RFID. The second level consists of automating distribution processes such as unloading and assembling orders. As the labour is reduced with the introduction of RFID enabled robots, the balance between automation and labour is discussed. Finally, the third level is an analysis of the decision-making process at network points and the application of cognitive automation to objects. A distribution network scenario is formed and used to illustrate network reconfiguration at each level. The research pinpoints that RFID enabled RTE offers a viable tool to assist supply chain automation. Further research is proposed in particular, the area of cognitive automation to aide with decision-making.

Improving returnable transport equipment management with an autonomous approach

Challenges of returnable transport equipment (RTE) management continue to heighten as the popularity of their usage magnifies. Logistics companies are investigating the implementation of radio-frequency identification (RFID) technology to alleviate problems such as loss prevention and stock reduction. However, the research within this field is limited and fails to fully explore with depth, the wider network improvements that can be made to optimize the supply chain through efficient RTE management. This paper, investigates the nature of RTE network management building on current research and practices, filling a gap in the literature, through the investigation of a product-centric approach where the paradigms of “intelligent products” and “autonomous objects” are explored. A network optimizing approach with RTE management is explored, encouraging advanced research development of the RTE paradigm to align academic research with problematic areas in industry. Further research continues with the development of an agent-based software system, ready for application to a real-case study distribution network, producing quantitative results for further analysis. This is pivotal on the endeavor to developing agile support systems, fully utilizing an information-centric environment and encouraging RTE to be viewed as critical network optimizing tools rather than costly waste.

Maximising the RFID benefits at the tyre distribution centre

In recent years the applications of radio frequency identification technology (RFID) in warehousing have gained a great amount of attention as it is a challenging and dynamic environment. Analysing a receiving operation of third party logistic (3PL) operator running a tyre distribution centre, this paper presents a case study of RFID application in the warehouse. The receiving process is enhanced with the RFID technology, which provides contactless identification, less manual data entry errors, instant stock management. Moreover, these benefits could be maximised by the proposed use of the RFID generated data in accounting of costs and services, which is a novel application of the RFID technology.