Running Head: DETERMINING JUSTIFICATION FOR RFID TECHNOLOGY
Determining Justification for RFID Technology
Bahram Izadi, Master Student of Business Management, University of Isfahan, Isfahan, Iran and John Boyd, BASc, Computer Engineering, University of Ottawa, Ottawa, Canada
Abstract
"What are the benefits?" is a common question for any organization considering implementing a new technology. This is an especially important question for small or developing companies, where an error in investment could result in unrecoverable operating capital loss. As Radio Frequency Identification (RFID) systems are making deep and impressive improvements in manufacturing, distribution, and supply chain management and military logistics, it
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The most common applications are payment systems, toll collection systems, access control, track people, assets and products without the need for human intervention or direct line of site. [Internet, 5] All of the applications listed have been deployed because they haven proven ROI.
4. RFID Costs
When considering RFID costs a company must consider the total cost of ownership rather than just the initial RFID hardware and tags costs. A complete RFID system includes not only hardware infrastructure, but also service such as design, development, deployment, maintenance, ongoing support, and training. Also to consider are the future costs as the system is scaled beyond its initial pilot or trial phase. Costs should also be associated with restructuring or introducing new business practices.
5. Creating Justification for RFID
The potential applications and benefits of RFID are only constrained by a company’s level of innovation. However, before rushing to adopt RFID technology a company can ensure the greatest rate of return and success by having in place a comprehensive strategic plan which quantifies all encompassing aspects of RFID including technology and business processes in order to deliver its benefits for maximum value. In
Given the facts in the case and as outlined in more detail in this case study, it is our recommendation that Mierdorf and Wolfram move to the case level RFID tagging process. The improvements up and down the supply chain in accuracy, inventory control, reduced labor costs are enough to at least continue with the RFID
Strong investment in Information technology to streamline information flows and product flows along supply chain(RFID, Retail-Link system)
As RFID technology evolves and becomes less expensive, there will be an increase in the number of companies and vendors using the technology. Eventually, new applications will be developed and these systems may even be able to solve common or unique problems associated with business in today’s market.
PRADA has long been adopted management information systems into most of their business part including manufacturing, sales, and human resource management. PRADA has Group information technology director who primarily responsible for the management of the Group’s information technology system. In 2000s, by using radio frequency identification (RFID), PRADA tried to controls manufacturing system, inventory, warehousing, distribution, logistics, automatic object tracking and supply chain management. What PRADA expected from RFID technologies were improve the potential benefits of supply chain management through reduction of inventory losses, increase of the efficiency and speed of
* Insource RFID to reduce unnecessary future costs. Take the initial hit and you will save money in the long run.
To justify the objective I have begun the research with literature revi9ew and by collecting the secondary data from the articles, peer reviewed journals, related research papers and books. Journals and articles were important to understand the challenges and risk RFID technology is facing .I Addition to data collected from another sources are discussing with industries who implemented and using RFID technology to track their products, Reviews and people who are technically involved with RFID technology helped me to collect the data required for my
The RFID system will open new sales opportunities to larger markets such as the Department of Defense (DoD) and Wal-Mart. Who are now demanding that RFID tracking as a condition of contracting.
First advancements in RFID technology coupled with decreasing costs have allowed RFID to gain greater prominence and therefore a higher level of adoption. The following are examples of the unique capabilities offered by RFID:
Today, RFID is used in retail, manufacturing, healthcare, agriculture, travel, entertainment, etc. RFID increases efficiency of operations, decreases reliance on manual process, improves asset visibility and traceability, reduces operation costs, and provides useful data for business analytics. There are many different reasons why companies and firms are beginning to make the switch to RFID, some examples are: automating inventory and asset-tracking in healthcare, manufacturing, retail, and business sectors; identifying the source of products, enabling intelligent recall of defective or dangerous items; prevent use of counterfeit products in the supply chain; improve shopping experience for consumers; provide visibility into the supply chain
Weaknesses involve high cost per unit and high RFID system integration costs, as well as low level of RFID technology understanding in the market. Opportunities for the RFID incorporate potential for replace of the bar code, increasing end-user demand for RFID systems and market potential in various businesses. Finally, treats involve customers concerns of privacy violation. After all, using of RFID system Drugco Discount Pharmacy improves overall efficiency of the company and on the same time customers’
tesco gains huge flexibility and performance by using rfid technology. similar and new technologies such as rtid (real time identification) can improve even exist benefits and solve problem out like
Competitive advantage if they are first to successfully implement the RFID system at the case level
Over the last four years, I’ve delt a great deal with RFID supply chains, and have seen first hand the positive advancements that are made with them. If given the opportunity to lead this project with your company, I believe I can close the gap between Intel and it’s competitors.
RFID technology is not only used at gas stations, restaurants, and department but also at
• 1. Become familiar with RFID technology and its potential uses in Harley-Davidson’s supply chain using the information presented in this chapter and information you obtain through the Online Companion links, your favorite search engine, and your library. In about 400 words, evaluate the advantages and disadvantages for Harley-Davidson of replacing its bar codes and scanners technology with RFID.