RFID in Operations and Supply Chain Management

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Nov 27, 2013 (3 years and 6 months ago)

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Edited by Prof. Dr. Thorsten Blecker,
Prof. Dr. George Q. Huang and Prof. Dr. Fabrizio Salvador
6
Operations and Technology Management
RFID in Operations and
Supply Chain Management
Research and Applications
Thorsten Blecker / George Q. Huang (Eds.)
erich schmidt verlag
ES
Extract,for more details click ESV.info/978 3 503 10088 0
RFID in Operations and
Supply Chain Management
Research and Applications
Edited by
Thorsten Blecker and George Q. Huang
With Contributions by
Eddy Bajic, Malcolm Bertoni, John S. Bishop, Jr., Melanie Blasl,
Thorsten Blecker, Indranil Bose, Madlen Boslau, Charles M. Carson,
Aldo Cea-Ramirez, Pavlina Chikova, Alvin Chung Man Leung,
Dragos Dobre, Ergin Erdem, G. Scott Erickson, Michael Etgar,
Emilio Ferrari, Lynn A. Fish, Dimitris Folinas, Wayne C. Forrest,
Driss Hakimi, George Q. Huang, Brian D. Janz, Bernd Kaluza,
Chris Keen, Eileen P. Kelly, Zsolt Kemény, Eva-Maria Kern, Diego Klabjan,
Uta Knebel, Ron Konecny, Helmut Krcmar, Pierre-Alexandre Leclerc,
Jan Marco Leimeister, Britta Lietke, Peter Loos, László Monostori,
Benoit Montreuil, Donald C. Mosley, Jr., Robert F. Otondo,
Nikolas Patrikios, Kulwant S. Pawar, Mitzi G. Pitts, Yoseph Raanan,
Johann Riedel, Angel Ruiz, Uwe Sandner, Sandipan Sen, Jing Shi,
Björn Simon, Jollean K. Sinclaire, Jeffrey M. Stanton,
Joseph G. Szmerekovsky, Kantipa Thamworrawong, Bettina Thurnher,
Stefano Torroni, Ilias Vlachos, David L. Wells, Herwig Winkler, V. Zeimpekis,
Hai Zeng, Jiang Zhang, Kathryn M. Zuckweiler, Elisabeth Zudor-Ilie
ERICH SCHMIDT VERLAG
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ISBN: 978 3 503 10088 0
ISSN: 1863-3390
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V
Preface
Radio Frequency Identification (RFID) is an emerging technology, which has
gained increasing attention from academia and practitioners. This technology
enables an automatic acquisition of data about an object without necessitating a
straight line of sight of transponders and readers. It is widely believed that over the
next years, the technology will experience wide implementation as bar coding is
used today. This is mainly due to the fact that RFID technology provides the visi-
bility and traceability with a great potential to streamline the supply chain by im-
proving efficiency and effectiveness. Successful RFID applications in logistics and
supply chain management bring benefits such as the rationalization of inventory
management, optimization of transportation within logistics networks, efficient
monitoring of production and assembly processes, etc. However, in spite of poten-
tial benefits, many companies are still reluctant to adopt this promising technology.
They choose to wait and see attentively what the first movers are doing in this field.
This attitude is typical with introducing each new technology into an organization.
Pros and cons as well as benefits and risks should be well explored and analyzed.
Unfortunately, very few reference books are available dealing with these issues in a
systematic and comprehensive manner.
This book has brought together the expertise of practitioners and researchers
from different countries in order to disseminate experience and good practice with-
in both world-class and small-medium companies involved in global logistics and
supply chain management. A comprehensive collection of chapters have been col-
lated in this volume to highlight research issues and provide guidelines concerning
the use of RFID technology throughout the supply chain. The book embraces the
current developments and advances, and present the state-of-the-art, innovative
theoretical concept, advanced and successful implementations as well as empirical
research findings. It provides a coherent framework for researchers who are inter-
ested in this technology and for practitioners who are willing to put successfully
this technology in practice. Alternative approaches and common elements are ex-
amined. Latest developments are outlined. Emerging issues such as integration and
standards are explored.
This handbook collects twenty six chapters grouped into four parts. Part 1 of-
fers eight chapters covering implementation issues of RFID-enabled solutions in
supply chain management. Nine chapters are included in Part 2, discussing a varie-
ty of applications of RFID technologies in different industrial sectors. Impacts of
using RFID solutions in supply chain management are discussed in five chapters
from:Blecker/Huang (Eds.),RFID in Operations and Supply Chain Management.
© Erich Schmidt Verlag GmbH & Co.,Berlin 2008
Preface

VI
included in Part 3. Part 4 presents four chapters dealing with emerging issues and
standards of RFID-enabled logistics and supply chain management technologies.
The presentation of this book strives for a balance between modularity and in-
tegrity. Individual chapters are carefully structured in a self-contained fashion.
Each starts with an overview of the technique and proceeds to outline the systemat-
ic procedure, followed by case studies to demonstrate its use and merits. Readers
can choose the most relevant materials to achieve incremental understanding and
implementation.
This book is never possible without the supports from enthusiastic and patient
contributors. Comments from the reviewers are greatly appreciated. All papers
show a high quality and provide a part to the scientific progress in RFID research.
Without their support and hard work, this volume will not be possible at all. Very
special thanks also go to Dipl.-Wirt.-Inf. Thomas Will for his continuous efforts to
prepare and structure this book. An additional thank should be given to the publish-
ing company, the Erich Schmidt Verlag, especially to Dr. Joachim Schmidt who
has convinced ourselves with his very professional, friendly and cooperative man-
ner.


Thorsten Blecker George Q. Huang


from:Blecker/Huang (Eds.),RFID in Operations and Supply Chain Management.
© Erich Schmidt Verlag GmbH & Co.,Berlin 2008

VII
Table of Content
Preface ........................................................................................................................ V
Table of Content ..................................................................................................... .VII

Implementation
RFID Implementation Framework in Supply Chain ............................................. 3
Dimitris Folinas and Nikolas Patrikios
Best Practices in RFID Implementation .............................................................. 13
Lynn A. Fish and Wayne C. Forrest
RFID Implementation Challenges for Small- and Medium-Sized
Enterprises ............................................................................................................ 35
Kathryn M. Zuckweiler and Ron Konecny
Back to the Future with RFID: Lessons learned – some old, some new ............. 49
Brian D. Janz, Mitzi G. Pitts, Robert F. Otondo
A Framework for Conceptual Case Studies for RFID-based
B2C-Solutions ...................................................................................................... 69
Uwe Sandner, Jan Marco Leimeister, Eva-Maria Kern
and Helmut Krcmar
Service Modeling for Smart Objects in the Supply Chain using RFID
and UPnP Technologies ....................................................................................... 91
Eddy Bajic, Aldo Cea-Ramirez and Dragos Dobre
Identity-Based Tracking and Web Services for SMEs ...................................... 119
Elisabeth Ilie-Zudor, Zsolt Kemény, László Monostori
Integrating RFID and Connective Technologies in Retail Stores ..................... 148
D. Hakimi, P.A. Leclerc, B. Montreuil and A. Ruiz

from:Blecker/Huang (Eds.),RFID in Operations and Supply Chain Management.
© Erich Schmidt Verlag GmbH & Co.,Berlin 2008
Table of Content

VIII
Applications
Potential Process Improvements in Supply Chain Management
through RFID ..................................................................................................... 175
Pavlina Chikova, Björn Simon and Peter Loos
Towards an RFID based System for Real-Time Fruit Management ................. 195
V. Zeimpekis, M. Psarrou, I. Vlachos and I. Minis
Application of RFID and Sensing Technology for Improving
Frozen Food Quality Management .................................................................... 221
Ergin Erdem, Hai Zeng, Jing Shi and David L. Wells
RFID Application for Loss Management in Pharmaceutical Distribution ........ 247
Hai Zeng, Ergin Erdem, David L. Wells and Jing Shi
Radio Frequency Identification for Customer Relationship Management ........ 273
Indranil Bose and Alvin Chung Man Leung
The Application of RFID Technology in Consumer Architecture .................... 289
Michael Etgar and Yoseph Raanan
The Role of RFID within Mobile-Integrated Business Processes ..................... 303
Bettina Thurnher
Radio Frequency Identification Enabled Business Applications in
Supply Chain Management ................................................................................ 315
Diego Klabjan
Use of RFID-Technology for the Improvement of Unloading Processes
in a Waste Management Enterprise ................................................................... 337
Herwig Winkler, Bernd Kaluza and Melanie Blasl

from:Blecker/Huang (Eds.),RFID in Operations and Supply Chain Management.
© Erich Schmidt Verlag GmbH & Co.,Berlin 2008
Table of Content

IX

Impact Studies / Survey
The Effect of Supply Chain Contracts on Supplier and Retailer Costs and
Benefits in an RFID System .............................................................................. 355
Joseph G. Szmerekovsky and Jiang Zhang
Consumer Attitude and Behaviour toward RFID Usage ................................... 377
Madlen Boslau and Britta Lietke
A Survey of RFID Awareness and Use in the UK Logistics Industry .............. 397
Johann Riedel, Kulwant S. Pawar, Stefano Torroni
and Emilio Ferrari
Strategic Importance of RFID – Empirical and Conceptual Insights ................ 413
Jan Marco Leimeister, Uta Knebel, Uwe Sandner, Eva-Maria Kern and
Helmut Krcmar
Radio Frequency Identification, Consumer Privacy, and its impact on the
Supply Chain Network....................................................................................... 433
John S. Bishop, Jr., Donald C. Mosley, Jr. and Charles M. Carson

Standards and Emerging Issues
Logistics Standards ............................................................................................ 451
Malcolm Bertoni, Kantipa Thamworrawong and Chris Keen
Privacy and Security Considerations for Radio Frequency Identification
(RFID) Systems .................................................................................................. 471
Jeffrey M. Stanton
Legal and Ethical Issues Concerning RFID ....................................................... 487
G. Scott Erickson and Eileen P. Kelly
The Role of Consumer Education in the Future of RFID .................................. 501
Jollean K. Sinclaire and Sandipan Sen

Authors ................................................................................................................... 517


from:Blecker/Huang (Eds.),RFID in Operations and Supply Chain Management.
© Erich Schmidt Verlag GmbH & Co.,Berlin 2008

3
RFID Implementation Framework in Supply Chain
Dimitris Folinas and Nikolas Patrikios

Abstract
Efficient Supply Chain Management is the key to a successful business. The deci-
sion to deploy a Radio Frequency Identification (RFID) solution is a business deci-
sion. Through RFID, enterprises hope that they improve their performance and gain
competitive advantage. Deciding to deploy an RFID system demands business
planning, as it needs significant converting of the way business operates. This ar-
ticle analyses the way RFID is implemented. Specifically, a four-phased framework
for RFID implementation is presented in details. The proposed framework can be a
useful roadmap for an RFID project implementation.

Keywords: RFID, Supply chain management, implementation framework.
1 Introduction
Large enterprises and organizations have already invested in RFID, while at the
same time they require from their suppliers to adopt RFID technology. A decision
to deploy RFID technology in an enterprise is rather a business and not a technolo-
gy decision. Developing an RFID strategy involves first of all understanding of
current business processes and then transforming some of them. Yet RFID in
supply chain is anything but stable. Is exorbitantly expensive and there’s a real risk
that today’s investment will become obsolete in the near future. Therefore, compa-
nies should study all the parameters of an RFID system for a certain amount of
time, before jumping in.
RFID is in the very early stages of widespread adoption in the supply chain.
Deploying RFID is a time-consuming process. Companies, that embrace it, should
start smoothly and slowly (Bhuptani et al, 2005). The early adopters use this period
to learn about the technology and to identify applications (Roberti, 2005). Primar-
ily, they should invest in research and development. Before applying the technol-
ogy, it is recommended that companies should decide if they have the appropriate
resources to invest and also how they will benefit from RFID in the medium-to
long-term period. On the other hand, some companies prefer a “wait and see“ ap-
proach waiting for the technology to become 100% reliable. However, that ap-
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4
proach is risky as well, since successful RFID implementation takes considerable
ramp-up time and there are many lessons to be learned (Rock-Tenn, 2004).
The implementation of an RFID system is not a task to be underestimated. A con-
ceptual framework can act as an effective guide for a successful RFID deployment.
Each part of the framework represents a major phase of an RFID deployment pro-
ject. Each phase builds upon the previous one. Successful completion of one phase
paves the way for moving the project to the next phase. The framework phases are:
Business analysis, Testing, Pilot implementation and Full deployment of RFID sys-
tem as depicted in Figure 1.
RFID
PHASES
FULL
DEPLOYMENT
TESTING
PILOT
IMPLEMENTATION
BUSINESS
ANALYSIS

Figure 1: Implementation phases of an RFID system
The following sections analyze the phases of the proposed framework in detail.
2 Business analysis
This phase includes first of all the analysis of the existing business processes and in
succession the requirements of the new system. Almost always, before trying to
plan a new system, it is necessary to completely evaluate the already existing
processes. Deploying RFID in an enterprise is a business decision that will influ-
ence a number of business domains and operations of an enterprise. Company’s
stakeholders should identify what business problems the RFID deployment will
solve and what the expected results will be (Bhuptani et al, 2005). The main steps
in this phase are as follows:
2.1 Analysis of business environment
Primarily, it is important to study the internal and external environment of business.
The study of internal business environment can reveal certain strengths and weak-
nesses of an enterprise. Similarly, the study of external environment can result in
probable opportunities and threats. With the SWOT analysis for example, business
leaders can evaluate their organisation’s current position and role in the supply
chain. For organisations that are not mandated by regulators or their business part-
ners to adopt RFID in the near future, the first step should be a rigorous assessment
of organisational readiness and business opportunities. This process, last no more
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than several weeks, is especially important for firms with little understanding of
RFID technology (Unisys, 2004). While analysing one’s business internally, one
should evaluate competitiveness. It is important to understand what the competitors
are doing and how the proposed RFID solution will affect the organization’s com-
petitive position. It is therefore essential, if a competitor has already used an RFID
system.
2.2 Assessment of existing business processes
RFID is not an IT issue. It is a company-wide opportunity. Consequently, business
processes will change. Automation will occur and new methods of analysis will be
employed (Brooke, 2005). Managers must investigate and understand their current
practices and processes, before determining the requirements of a new system. The
study of existing processes aims at their improvement or replacement. If a process
exists for solving the same business problem, it should be documented and its ca-
pabilities should be analysed. In some cases, modifying the existing process might
be more economical or less risky than starting from scratch. For example, the exist-
ing infrastructure designed to leverage data from the barcode in a manufacturing
environment might be modified to take advantage of the additional data obtained
from RFID tags. In other cases, the existing process might prove to be a step in a
planned transition to the new process (Bhuptani et al, 2005). Well-defined business
processes and a clear understanding of what the role RFID will play are critical to
the success of the project (Dorpinghaus, 2005). Moreover, enterprises should assess
the capabilities of their current information system and also the impact of RFID to
their existing computing infrastructure. RFID system must be integrated with the
existing information systems, like Warehouse Management System (WMS) and
Enterprise Resource Planning (ERP), in order to manage all the information col-
lected by RFID tags. If the information systems are not capable of handling this
amount of data, the organisation will fail to realise the full potential of an RFID
implementation. A business must be able to capture and analyse all the real time
data from RFID tags (Capone et al., 2004).
2.3 Project definition
Initially, needs analysis can plainly specify what organizations need from RFID
systems. If a company implements RFID to comply mandate from a big customer,
it will receive from customer the program guidelines. The program guidelines will
specify the minimum requirements of the project definition, like what items need to
be tagged, acceptable RFID technologies and required performance functionality.
For example, Wal-Mart asked its top 100 suppliers to apply RFID tags to all cases
and pallets by January 2005 (Checkpoint, 2004). Even companies that are under
pressure to meet customers’ mandates need to take at least few weeks to create a
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6
business case for the technology. Some of the sites are focusing on how to fulfill
the mandate, while others focus on how to achieve internal efficiencies. These
companies have plenty of time to determine their needs and should take a slower
approach by educating and learning the technology. They can identify efficiencies
along the supply chain that can speed accurate inventory management and reduce
costs. To build a business case, managers should wonder what problems would RF-
ID solve and what are the immediate and long-term goals for RFID implementation
(Rock-Tenn, 2004). Some organizations are pursuing RFID to gain internal operat-
ing efficiency. Internal RFID initiatives result in closed-loop systems that are easier
to implement. Closed-loop systems avoid issues with industry standards, synchro-
nizing data over Internet and disconnects in collaborative processes. When the in-
itiative includes collaboration with a supply chain partner, companies can manage
better the supply chain. Therefore the company pursues competitive differentiation.
A few companies have publicized collaborative initiatives to achieve competitive
differentiation (Rock-Tenn, 2004).
2.4 Vendor choice
For an RFID project, vendors play a major role in design, implementation and
management. Careful vendor selection can lead to a successful project. For any
project, there are three approaches to select vendors (Moradpour, 2005). First ap-
proach is best of breed, which selects the best vendor for each portion of an RFID
project. Secondly, in the one stop shop approach one vendor controls and manages
the project. The trusted advisor approach is a hybrid of the previous two, requiring
that overall project management responsibility stay in organization, with a vendor
acting as a trusted advisor. As Moradpour indicates „Vendor selection should be
done after careful research“ (Moradpour, 2005).
2.5 Economic analysis
As in every other project, an economic analysis has to be founded, which will in-
clude the budget of the project and the timetable of its implementation. The pur-
pose of this study is to analyze the cost and the return of the investment. Knowing
how much the new system will cost plays a crucial role in deciding whether or not
to move forward with implementation. The deciding factor for many companies
won’t be cost alone; rather, it will be what kind of return they will get on their RF-
ID investment (Lacefield, 2004). The cost / benefit analysis will determine whether
the investment will finally take place. The cost includes the supply of the equip-
ment, as well as the implementation of the whole system. It is clear that not all
companies will benefit from RFID equally (Kleist, 2004). The managers should
take into account the fact that adopting RFID is a long-term investment, whose re-
sults will be revealed through the course of time.
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2.6 Backup scenario
Scenarios can act as a powerful planning and risk mitigation tools. As an incremen-
tally costless backup, that provides an important level of identification assurance, is
the combination of a bar code and RFID tag (FKI Logistex, 2005). Many compa-
nies continue to use bar codes as back up in case the RFID tag is damaged.
3 Testing
Many of the important functions and performance levels, which the RFID system
needs to provide, can be planned and tested before the pilot project is implemented.
RFID might be tested on a limited basis. Tests allow the companies to gain expe-
rience with the technology and with potential suppliers on a small scale. When test-
ing the technology, begin in a controlled environment or an RFID lab. In an RFID
lab users could start by testing one factor at a time, then slowly work up to actual
warehouse conditions (Lacefield, 2004). Testing in a lab environment, users can
save time and money, because the problems are solved before the RFID installa-
tion.
Business should set up a development environment for small scale, controlled
testing. Some prefer independent testing like the independent, non-profit RFID lab
that was created in 2004 as Roberti, indicated. This facility specializes in identify-
ing and implementing RFID systems and ensures the test results will reflect the
conditions users will experience in their own facilities (Roberti, 2004). In a non-
production environment, such as a lab, business can start by doing a tag and reader
assessment using a representative sample of products. That determines the best
reader and tag combination for an application, as well as where the RFID tag’s op-
timum placement will be. Testing RFID tag content and orientation sensitivity are
essential to ensuring the performance of the tag. RFID tags from different suppliers
will include slightly different tag positions. Not all tags are equal (Lacefield, 2004).
Each class and type of tag has characteristics that make it better suited to specific
applications. The orientation of the tag in relationship to the reader and antenna
will affect the performance of the tag (Phaneuf, 2005). After some preliminary test-
ing, problems can be revealed to read ranges. Tests reveal problems such as reader
rates that are less than optimal for efficient production, radio frequency signals in-
terfering or missed signals. Many external factors affect transmission between the
reader and the tags (Dorpinghaus, 2005). It could be the temperature; it could be
humidity or just the placement of tags. RFID’s poor performance around water and
metal, poses yet another obstacle (Mccrea, 2004). In many cases the poor read rates
are not due to failures of the technology, but because of the way the technology is
implemented. Therefore, business can’t always put the readers where they want to.
They need to work within the confines of the building they have (Roberti, 2005).
Varying the reader antenna placement is usually the easiest troubleshooting step.
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8
The reader antenna must be placed in a position where powering the tag and receiv-
ing data can be optimized.
In this phase of test, it is important to begin learning how RFID devices will in-
tegrate with other enterprise systems such as ERP and WMS. Testing and evalua-
tion allow managers to preview the extent of capabilities that brings to their enter-
prise and the supply chain (Kleist et al, 2004). To realize the full benefits of RFID,
the implemented system must have the abilities to capture and process the data
created by RFID tags and to analyze that data to provide useful information. To
capture and process this data, some type of middleware must be developed and in-
stalled to interface between the RFID readers and the WMS. Middleware is a layer
of software that allows WMS to get information from RFID readers without actual-
ly talking to the readers directly. Currently, WMS systems are not capable of direct
interface with RFID readers (Capone et al., 2004).
In conclusion, in this phase of RFID implementation, testing and lab work can
find the best combination of reading devices and tag designs for company’s prod-
ucts. Moreover, identify where business should place tags and readers to maximize
accurate readings and operational efficiencies. Data integration planning is done to
make sure data can be converted into useful information by interfacing with infor-
mation systems.
4 Pilot implementation
It is recommended companies to undertake a pilot project prior to full deployment.
This phase bridges the gap before the wide scale deployment of RFID system. This
is a critical link in any enterprise wide deployment (Bhuptani et al, 2005). Previous
tag tests determine the best way to get tags to work. On the other hand, pilot tests
provide insight as to how all the system components work together. Initial pilot
tests should be small, perhaps limited to a single facility and expanded in phases as
company gains experience and confidence in the system. Limited pilots make it
easier to isolate the source of problems and to develop appropriate remedies
(Checkpoint, 2004). Pilot projects are needed and they can take four to six months
(Trunick, 2005).
Checkpoint systems, Inc. has determined that there are five characteristics for a
successful pilot (Checkpoint, 2004). The best RF pilot projects are:
1. Supported from the top of the organization.
2. Structured to validate a specific goal premise.
3. Designed to achieve specific, measurable and verifiable goals.
4. Phased to mitigate the impact on the organization.
5. Designed to be scalable.
One of the goals of the pilot phase is evaluating how the systems perform in busi-
ness work environment. In this phase, RFID technology is used to simulate the ap-
plication in a real production environment. Business check if the process and
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workflow that was designed works in a live environment, and that the full range of
the technology pieces performs as expected. Managers should choose a pilot site,
that if the pilot fails; it won’t disrupt the entire operation (Gilmore, 2004). The pilot
phase should be designed to check critical elements of the new RFID system. Con-
sequently, it should be structured as a closed loop system that works within the four
walls of an enterprise only, so as to exhibit better control over the environment,
(Bhuptani et al, 2005). It is also tested the software and hardware, and verified sys-
tem accuracy at higher volumes and speeds.
Pilot reveals problems that are not anticipated and also may bring out hardware,
software or architecture limitations that may need to be solved for a successful dep-
loyment. Careful measurement and documentation throughout this phase will facili-
tate problem solving. Business will build knowledge and confidence in the system
as it works the everyday demands (Kleist et al, 2004).
As in all major changes, commitment of the human participants determines
most successes or failures. Therefore, another goal of the pilot phase is to prepare
workers to use the new RFID system. Training and staff acceptance are integral to
this effort (Kopalchick, 2005). The implementation of an RFID system will have
profound effects on nearly all jobs and tasks. Organizations must involve personnel
from each process area to understand how RFID technology will affect each re-
quired task. This detailed level of understanding along with lessons learned from
initial pilot programs will allow managers to develop the appropriate training mod-
ules for their employees (Capone et al., 2004).
5 Full deployment of RFID system
Once the pilot has run successfully under a variety of conditions it will be the time
to transition from pilot phase to full deployment. In this phase, the RFID system
needs to be implemented inside the organisation. The lessons learned from the pre-
vious phases should be heavily leveraged. The project will need to be scaled to
support enterprise operations and additional sites may need to be prepared for im-
plementation. Phased implementation is recommended. Implementation should be
coordinated with the vendor to ensure support, especially as the deployment of the
RFID system is expanded to new facilities or applications. The skill and experience
of the vendor will be a major factor in the time required and effectiveness of the
rollout (Checkpoint, 2004). Because technology is evolving and protocols (such as
EPC standards), will change, enterprises should choose a vendor that offers upgra-
deable firmware and scalable solutions. Therefore, a right choice of vendor offers
protection to enterprise’s investment in RFID (Kleist et al, 2004).
Unfortunately, success with a pilot project doesn’t guarantee success with the rest
of the rollout. The pilots are usually done in a controlled environment, but each ap-
plication environment is different. Consequently, enterprises might face a whole
different set of problems at each warehouse (Lacefield, 2004). Very important is
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10
the time that the new RFID system will be deployed. Rollout of immature solutions
without proper transition plans can lead to failures. On the other hand, lack of lea-
dership and strong execution skills can lead to a very slow rollout, diminishing
benefits and adding uncertainty throughout the enterprise (Bhuptani et al, 2005).
For a long time the previous barcode system will run simultaneously with the
RFID system (FKI Logistex, 2005). Business can use smart labels that combine
barcode and an RFID tag. Smart labels retain bar code label information in the
same format, while adding RFID. Using smart label technology is the least disrup-
tive way to add RFID without fundamental business changes. There is an intension
to transition, to migrate over time to RFID over the next decade (FKI Logistex,
2005).
A successful deployment doesn’t mean the end of the project. After implemen-
tation, RFID programs should be evaluated. Based on that evaluation, strategy and
requirements may need refining and the cycle begins again (Unisys, 2004). This
helps identify which process is working well and which needs improvement. The
resulting knowledge should be fed back into the internal system for further use in
process improvement. The final results should be reviewed with the management
and compared with the business goals of the first phase of the project.
6 Conclusions and discussions
Implementing RFID is a complicated procedure, but through the right planning it
offers significant advantages to the business. Each area of the organization should
be evaluated independently to determine where RFID could provide additional
functionality. Nowadays, a lot of enterprises are at the phase of extensive tests of
the particular technology and take part in pilot programs. Requirements for this im-
plementation include placement of tags and readers, software and middleware setup
and training of labor.
Specific issues need to pay attention at each phase of RFID:
– Business analysis,
– Testing,
– Pilot implementation
– Full deployment of RFID system
Deploying RFID is a business decision. Consequently, it requires business and
economical analysis. At the phase of testing, businesses are trying to learn the new
technology and solve the appearing problems before they move to full implementa-
tion of the RFID system. Businesses are doing a tag and reader assessment and
choose the best combination. Furthermore, testing should include how well the in-
frastructure can leverage the data provided by RFID systems and integrate them
with other information systems. The pilot phase is the time to tool up for handling
greater volumes with real life criteria in actual working environments. The objec-
tive of pilot program is to develop a predictable and scalable system. Moreover, en-
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RFID Implementation Framework in Supply Chain

11

terprises try to evaluate the benefits that this technology will bring and whether the
results respond to the original targets of the enterprise. The full deployment of the
RFID system is a time-consuming process. Now, the real outcomes and problems
are revealed. RFID system should be designed to be scalable and implemented in
phases. For a long time, organizations should manage dual barcode and RFID sys-
tems. Until fully completing the project, enterprises expect to solve many of the
problems that RFID faces.
At the foreseeable future the overall cost of the investment is expected to be
significantly reduced, making the RFID a viable solution.
References
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tion systems, SUN Microsystems, USA, 78-94.
Brooke, M., 2005, Common Mistakes, Uncommon best practices, http://www.rfidjournal.com/.
Capone G., D. Costlow, W. Grenoble and R. Novak, 2004, The RFID-Enabled Warehouse, SAP
University thought leadership, supply chain paper.
Checkpoint, 2004, Profiting from process: Using EPC/RFID to create new business value,
www.morerfid.com.
Dorpinghaus, B., 2005, What I wish I had known, http://www.rfidjournal.com/.
FKI Logistex, 2005, RFID for the real world. Challenges and opportunities in the warehouse and
distribution center environment, White paper.
Gilmore D, 2004, Anatomy of an RFID pilot, Supply chain digest.
Kleist R., T. Chapman, D. Sakai and B. Jarvis, 2004, RFID Labeling, smart labeling concepts &
applications for the consumer packaged goods supply chain, Printronix, USA, 106-120.
Kopalchick J. and M. Christopher, 2005, „RFID Risk Management“, Internal Auditor, April 2005,
66-69.
Lacefield S., 2004, To RFID, or not to RFID?, Logistics Management, July 2004, 63-68.
Mccrea B., 2004, Tag you’re IT, Logistics Management, February 2004, 44-48.
Moradpour S., 2005, Choose your Partner Carefully, RFID news & solutions, http://rfidnas.com/.
Phaneuf A., 2005, Meeting the EPC RFID mandates: Where to begin, White paper,
http://www.rfidjournal.com/.
Roberti, M., 2005, Progress comes in small steps, http://www.rfidjournal.com/.
Roberti, M., 2004, The role of independent testing, http://www.rfidjournal.com/.
Rock-Tenn co., 2004, Radio Frequency Identification RFID in the consumer goods supply chain:
Mandated compliance or remarkable innovation?, An Industry White paper, 35-56.
Trunick P., 2005, Stay loose for the RFID stretch run, Logisticstoday, March 2005, 35-37.
Unisys, 2004, Radio Frequency Identification: Moving beyond the hype to maximum value, White
Paper, http://www.morerfid.com.
Extract,for more details click ESV.info/978 3 503 10088 0
from:Blecker/Huang (Eds.),RFID in Operations and Supply Chain Management.
© Erich Schmidt Verlag GmbH & Co.,Berlin 2008
^

RFID is a key enabler of supply chain operations. RFID is
one of the most important developments of our time. This
is mainly due to the fact that RFID technology provides the
visibility and traceability with a great potential to streamline
the supply chain by improving efficiency and effectiveness.
This volume, edited by Thorsten Blecker and George
Q. Huang, presents current research and applications of
RFID in practice, e.g.
• implementation challenges, identity-based tracking and
web services for small- and medium-sized enterprises
• the integration of RFID and connective technologies in
retail stores
• RFID based system for real-time fruit management
• application of RFID and sensing technology for improving
frozen food quality management
• RFID for customer relationship management
• the use of RFID technology for the improvement of

unloading processes.
In addition, this volume dwells on logistic standards and
emerging issues such as privacy and security considerations
for RFID systems, legal and ethical issues concerning or the
role of consumer education in the future of this technology.
This book is addressing both academic researchers and am-
bitious practitioner who are performing in the area of RFID.
www.ESV.info

69,00
€(D)
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