Description
RFID technology and the Electronic Product Code (EPC) network have attracted considerable interest from businesses and academics in recent years. The interest is even stronger in the retail industry where firms such as Best Buy, Wal-Mart, Tesco, Target and Metro AG are capitalizing on the potential of these technologies.
92
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Samuel Fosso Wamba
1
and Harold Boeck
2
1
École Polytechnique de Montréal, [email protected]
2
Université de Sherbrooke, [email protected]
Received 26 July 2007; received in revised form 7 January 2008; accepted 22 January 2008
Abstract
RFID technology and the Electronic Product Code (EPC) network have attracted considerable interest from
businesses and academics in recent years. The interest is even stronger in the retail industry where firms such
as Best Buy, Wal-Mart, Tesco, Target and Metro AG are capitalizing on the potential of these technologies.
Based on a field study conducted in a three-layer retail supply chain, this paper tests several scenarios
integrating Radio Frequency Identification (RFID) technology and the EPC network and evaluates, in a
laboratory setting, their potential as enablers of information flow within a retail supply chain. Using an “open-
loop” adoption strategy, our preliminary results indicate that RFID technology and the EPC network (i) hold
some potential that can be grasped through Business Process Management (BPM), (ii) enable the
synchronization of information flow with product flow in a given supply chain, and thus, (iii) provide a better level
of information integration between supply chain members. The results suggest that these “new waves” of
information technology (IT) could in fact provide end-to-end information flow between supply chain members.
Key words: Retail industry, RFID, BPM, EPC network, information flow, warehouse management,
proof-of-concept.
93
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
1 Introduction
The main objective of this paper is to investigate the potential of RFID (Radio-Frequency Identification) technology
and the EPC (Electronic Product Code) network as enablers of information flow in a Business-to-Business electronic
commerce (B2B e-commerce) context. By focusing on a single “open-loop” supply chain initiative in the retail
industry, the paper examines the issues related to the determination, validation and simulation of selected B2B e-
commerce scenarios integrating RFID technology and the EPC network in a university-based research laboratory
setting. As the research objective is to improve our understanding of the potential of RFID technology and the EPC
network, the research design corresponds to an exploratory research initiative.
This paper is organized as follows. Section 2 presents RFID technology and the EPC network, followed in Section 3
by a description of changes in the retail industry and the potential for RFID technology and the EPC network in that
industry. In Section 4, a review of literatures on (i) supply chain management and information flow and (ii) information
technology and information flow creates a theoretical basis for our research. In Section 5, we present the
methodology and the research design of the study. In Section 6, the results and discussions are presented. Finally,
in Section 7, we discuss the implications and draw our conclusions.
2 RFID Technology and the EPC Network
2.1 RFID Technology
In general, RFID technology has been considered as “the next big thing for management” [61] p. 154, and “the next
revolution in supply chain” [53] p. 1. It is proposed that the technology helps to streamline supply chains. This “new
wave” of IT has recently attracted growing interest from the industrial and academic communities. The interest is
even stronger in the retail industry, where firms such as Best Buy, Wal-Mart, Tesco, Target and Metro AG are
planning to capitalize on the potential of these technologies. However, RFID is not new. It has its origins in military
applications during World War II, when the British Air Force used RFID technology to distinguish allied aircraft from
enemy aircraft with radar technology [3].
RFID is a technology that uses radio waves to automatically identify individual items or products in real time in a
given supply chain [43]. Like bar codes, biometrics and magnetic stripes, RFID technology belongs to the broader
class of Automatic Identification and Data Capture (AIDC) technologies. Any RFID system is made up of three major
layers: (i) a tag or transponder containing a chip, which is attached to, or embedded in, a physical object to be
identified; (ii) a reader, also called an interrogator, and its antennas, which communicate with the transponder
without requiring a line of sight; and (iii) a host server equipped with a middleware application that manages the
RFID equipment, filters data and interacts with enterprise applications. RFID is often compared to bar coding
systems, both conceptually and in terms of its operational performance. Even though both technologies belong to the
AIDC family, RFID has superior operational performance. Indeed, unlike bar coding, which uses optical laser or
imaging technology to scan and read a printed label, RFID technology uses radio frequency signals to read or write
information on a product equipped with a tag [61]. Moreover, RFID technology (i) does not require a line of sight, (ii)
can read many tags simultaneously, (iii) offers unique item-level identification (when using EPC codes) [59], (iv) is
digital and read-write capable, (v) can store data or trigger access to external data, and (vi) can store more relevant
data (e.g. serial number, location, lot number, status, etc.) [61]. Information can be accessed much faster and more
easily with RFID than with bar coding.
2.2 The EPC Network as a Backbone of RFID Technology
The EPC network, also called the Auto-ID model, was proposed and developed by the Auto-ID Center at MIT as a
standard for RFID infrastructure in terms of networking support [53], [17], [32]. This network is based on the EPC,
which is a new numbering format for uniquely identifying items or products. The EPC network facilitates an “open-
loop” standards-based environment, enabling end-to-end EPC information exchange within a supply chain [50].
Moreover, the vision for this network is to offer an intelligent infrastructure capable of linking objects, information,
computers and people [44], and thus creating an “Internet of Things.”
The EPC acts as a pointer to data on the network, unlike a standard RFID tag, which has much of the data
associated with tagged items and products embedded on the tags themselves [47]. Basically, the EPC network is
made up of five components [32] (see Figure 1): (i) the EPC, which can be incorporated into an RFID chip (also
called an EPC tag) and attached to a physical object, product or item, can provide information such as the product’s
manufacturer, category, size, manufacturing date, expiration date, final destination, etc. (ii) The RFID reader
identifies any EPC tag within its reading range, reads it and forwards the EPC information to the SAVANT. (iii) The
SAVANT is the middleware system located between the readers and the firm’s application systems. The middleware
is at the core of the EPC network. Indeed, it is where business rules are configured. Based on those business rules,
the middleware is responsible for data filtering and aggregation, manages real-time read events and information,
94
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
provides alerts, and interacts with the EPC Information Service (EPC-IS) and the local Object Name Service (ONS).
(iv) The EPC-IS is the gateway between any requester of information and the firm’s AS and internal databases. It is
responsible for information access and exchange within a supply chain. (v) The local ONS is an authoritative
directory of information sources available to describe all EPC tags used in a supply chain [17].
Basically, the first three components of the EPC network correspond to those of an RFID system. However, the EPC
network goes beyond the standard implementation by adding a unique product/item identification through the EPC
code, the local ONS and the EPC-IS, which provide a means of sharing information more easily in a given supply
chain. The EPC network evolves constantly: new standards are emerging while others are ratified. For example, the
name SAVANT as designation of the middleware has changed to EPC middleware. But the present study is based
on the architecture of Figure 1.
Figure 1: The EPC network infrastructure
3 The Retail Industry: Its Evolution and the Potential for RFID
Technology and the EPC Network
3.1 Changes in the Retail Industry
The retail industry, like other sectors, is characterized by globalization, aggressive competition, shorter product life
cycles, increasing cost pressures and the rise of customized demand with high product variants [33].
In the last 30 years, the retail industry has passed through many transformations. The traditional corner store
evolved into multitude types of configurations such as the supermarket, hypermarket, discount store, convenience
store, specialty retailer, gas station store and virtual store [20]. These transformations have had a huge impact on
the size of stores and the number of Stock Keeping Units (SKUs) managed within those structures. For instance, the
size of a traditional supermarket grew from 600 m
2
to almost 4,000 m
2
for superstores [20], and the number of SKUs
in a typical US food store has risen from nearly 6,000 in the 1960s to almost 40,000 today, leading to an explosion in
daily sales transactions. Therefore, capturing sales information using manual, and therefore error-prone, methods
has become almost obsolete [1].
Manual capture of sales information increases transaction costs and can cause inventory inaccuracies [18].
Moreover, the retail industry is facing new challenges such as managing the short shelf-life of grocery goods, strict
traceability requirements and the need for temperature control in the retail supply chain [27]. In this context, RFID
technology and the EPC network are seen as enablers of supply chain optimization.
3.2 RFID and the EPC Network’s Potential in the Retail Industry
In the retail industry, supply chain management (SCM) is seen as a strategic activity where RFID technology and the
EPC network could enhance performance. Indeed, the link between Internet-based back-end infrastructure and the
EPC network has the ability to create the so-called “Internet of Things,” enabling all supply chain players to access or
share real-time product information over the Net [50]. The unique potential of the combination of RFID technology
and the EPC network has driven major retailers such as Wal-Mart, Tesco, Metro AG, 7-Eleven and Best Buy, to
conduct several pilot projects in order to evaluate how to integrate these technologies into their business processes
95
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
[25], [53]. For example, by adopting RFID technology, Wal-Mart stands to achieve almost $600 million in annual
savings by reducing out-of-stock supply chain costs [3]. Procter & Gamble has also estimated that it could save
almost $400 million annually in inventory by deploying an RFID system [53], [51].
A recent independent study conducted by the University of Arkansas at Wal-Mart stores over a period of 29 weeks
has already shown significant return on investment (ROI). Indeed, the study shows that “Wal-Mart RFID-enabled
stores” were 63% more effective in replenishing out-of-stocks than stores without RFID. Moreover, the results
highlighted the fact that a 16% reduction in out-of-stocks was achieved, and that products equipped with EPC tags
were replenished three times faster than comparable items using standard bar code technology. Finally, manual
orders placed by these stores were reduced by almost 10%, contributing to the overall inventory reduction [56].
Since 2003, Metro Group in Germany has been running an RFID-enabled “Future Store,” where RFID technology is
used live for various applications throughout the supply chain [8]. By early 2005, Metro Group was already noticing
an ROI: a 14% reduction in warehouse labor, 11% increase in stock availability, 18% reduction in lost goods, and a
tag read rate at the pallet level of almost 90% [9]. Since then, this read rate has improved dramatically, reaching
100% [42]. Moreover, based on their early deployment, Metro Group found that the combination of RFID and
Advanced Shipping Notice (ASN) over Metro Link electronic data interchange (EDI) would lead to potential savings
of almost $10.9 billion per year [10]. In Europe, the interest in RFID technology and the EPC network is also strong.
Indeed, in a survey conducted in Europe among major retailers, the results indicated that most firms that have
experienced RFID technology preferred the EPC network as the networking infrastructure for information exchange
[57].
The enthusiasm about RFID and the EPC network is also high among major retailers in Australia. Indeed, a pilot
project has just been conducted there to investigate the potential of these technologies in the supply chain and
involved tracking the exchange of ownership and the movement of products through the entire supply chain from
manufacturer to retailer. It demonstrated that the introduction of RFID technology and the EPC network in a supply
chain can lead to cost reductions and enhance efficiency, visibility, information timeliness and accuracy [22]. Also, in
a recent study, [24], using a case study approach, reported that RFID technology could minimize product shrinkage
and provide end-to-end visibility across the whole supply chain.
The main thrust of this paper is therefore that RFID technology and the EPC network can act as enablers of
information flow within a supply chain.
4 Supply Chain Management, Information Technology and
Information Flow
4.1 Supply Chain Management and Information Flow
Supply Chain Management (SCM) is “an integrating approach to manage the overall flow of products, information
and finance from the supplier’s supplier to the customer’s customer” [19] p. 274. It has become vital to any
business’s success in the context of e-commerce in general and b2b e-commerce in particular, which by definition,
implies “exchanging and sharing information within the firm itself or with external stakeholders” [12] p. 254.
The flow of information between supply chain members is recognized to be a strategic activity that enhances supply
chain performance. Indeed, exchanging and sharing information to improve supply chain performance is becoming
critical to achieving competitive advantage [60]. The integration of information flow in a given supply chain involves
many activities such as the sharing of information about production, inventory level, delivery, shipment, capacity,
sales and performance within firms and between supply chain members [41], [21]. A high level of information flow
integration is considered to be a key determinant of a firm’s efficiency within a given supply chain. Indeed, [41] p.
1022 state that “firms can gain performance benefits from integrating information flows across the supply chain and
optimizing physical stocks and flows from a supply chain-wide perspective.” As a matter of fact, logistical problems
are viewed as primarily information-sharing problems [15].
Information sharing, defined as “the extent to which critical and proprietary information is communicated to one’s
supply chain partner” [7] p. 441 is a dimension of information flow and is considered a success factor for any SCM
strategy. Better information sharing in a given supply chain can enhance supply chain coordination, and thus reduce
the bullwhip effect [38], defined as the demand information variability in a supply chain, which is amplified at each
stage as it moves up the supply chain. Indeed, [33] suggest that by “taking the data available and sharing it with
other parties within the supply chain, an organization can speed up the information flow in the supply chain, improve
the efficiency and effectiveness of the supply chain, and respond to customer changing needs quicker” [33] p. 1641.
In general, four types of information are shared among supply chain members: (i) order information (e.g. order
quantities and prices), (ii) operation information (e.g. inventory levels), (iii) strategic information (e.g. point-of-sale
(POS) information), and (iv) strategic and competition information (e.g. demand information regarding a competitor’s
products) [48], [35].
96
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
Many academic researchers have been working on the impact of information flow on supply chain performance. For
example, [34] evaluated the potential of information sharing and its impact on the order fulfillment process. They
concluded that more information sharing leads to greater visibility across the supply chain, and thus contributes to
lower inventory levels. [38], using an experimental simulation, investigated the impact of different levels of
information sharing on the inventory replenishment of enterprises in a three-stage distribution supply chain according
to various performance indicators. Using analytical models, [29] arrived at the conclusion that information sharing
within a supply chain could lower supply chain costs from 12%–23%. [6] used a modeling approach to analyze the
value of information sharing by comparing a traditional information policy without shared information with a full
information policy that relies on shared information. They found that information sharing results in a 2.2% supply
chain cost reduction compared to the traditional information policy. Using a simulation approach, [37] found that
supply chain integration with exchange of information enables lead times to be reduced within the supply chain.
Moreover, better information sharing within a supply chain can help to reduce the bullwhip effect [14].
4.2 Information Technology and Information Flow
Over the decades, many information systems have been developed to help firms to achieve better intra- and inter-
organizational information flow. Indeed, information technology enables firms involved in a supply chain to share
demand and inventory data quickly and inexpensively [6]. For example, inter-organization information systems such
as EDI, database management systems (DBMS) and Web-based technologies have been adopted to support inter-
organizational information sharing at various stages of the supply chain and thus contribute to enhancing supply
chain performance through business process optimization. EDI is considered to be “a critical IT application in re-
engineering inter-organizational information exchanges for electronic orders and invoices” [30] p. 219, leading to a
better management of the just-in-time materials flow among supply chain members [30]; DBMS and Web-based
technologies allow accurate and timely information flows within a supply chain [63]. As well, IT-enabled information
flow can lead to indirect benefits such as order cost reductions, reduced lead times, and consequently, inventory
savings [21]. From an SCM perspective, IT can improve inventory management by reducing inventory levels, holding
costs, and spoilage, and thus contributes to increased profitability [13]. In this broader context of SCM, IT is
considered to be a critical enabler of supply chain optimization.
In the context of intra-business process optimization, Enterprise Resource Planning (ERP) systems have been
adopted to achieve flexible information flows, enabling quick deliverability through shorter planning cycles, availability
of up-to-date information, reduction of transmission times, elimination of double data handling and, as a result,
enhanced intra-organizational communications and data visibility [15] and increased productivity of work processes
[23]. Among AIDC technologies, bar coding has been used to reduce information distortion within a supply chain [5],
leading to better information quality and overall supply chain performance. For example, the use of bar coding in the
consumer packaged goods industry led to annual savings of almost $17 billion by 1997 [26].
In the retail industry context, in addition to information technology applications such as Materials Requirement
Planning (MRP), Manufacturing Resources Planning (MRPII), Warehouse Management System (WMS) and
Advanced Planning and Scheduling (APS), many firms are exploring the potential of new customer-focused concepts
such as Quick Response (QR), Efficient Consumer Response (ECR), Vendor Managed Inventory (VMI), Point of
Sale (POS) and Collaborative Planning, Forecasting and Replenishment (CPFR) in order to support their intra- and
inter-organizational business processes and information flow [49], [52]. For example, suppliers are using VMI to
monitor retailers’ inventory levels and thereby enhancing the decision-making process for replenishment frequency,
order quantities, delivery mode, and the timing of replenishments [45].
Thus, the benefits of IT for information flow are clearly highlighted in various research papers. A preliminary review of
literature shows that very few academic papers have focused on RFID technology and the EPC network as enablers
of information flow in the supply chain. However, many authors, such as [46] and [11] have called for research on
this topic.
5 Methodology
5.1 Research Design
The research design consists of a longitudinal field research conducted in one retail supply and corresponds clearly
to an exploratory research initiative. This appears appropriate since it enables researchers to capture a real picture
of each firm. Moreover, a “case study is a research strategy which focuses on understanding the dynamics present
within single settings” [16] p. 533. This research strategy allows researchers to fully understand the dynamic within a
given situation, focus on emerging phenomena and eventually induce theories [4]. Case studies are also well suited
to answer research questions such as “why” and “how” things are done [62]. Moreover, case study research is
becoming more widely used in the logistics and operation management fields; its importance has been highlighted by
many authors such as [39], [58], [54].
97
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
The longitudinal field research entailed four case studies and was conducted in 3 phases made of 12 consecutive
steps. The first phase also called the “opportunity-seeking phase” is made of the first six steps. Step 1 represents the
starting point, with a thorough assessment of the corporate motivations underlying the adoption of RFID technology
and the EPC Network. Steps 2 and 3 allow a sharper focus on specific critical activities that will be targeted by an
RFID and EPC Network implementation. Steps 4, 5 and 6 reflect the current situation in terms of actual supply chain
dynamics and existing intra- and inter-organizational business processes. The second phase or the “scenario
building phase” is used to evaluate specific RFID and EPC Network opportunities (step 7) and assesses the potential
of RFID and EPC Network applications (step 8). In the Step 8, several questions related to business and
technological concerns are evaluated and need to be answered. For example: How will firms in the network handle
their respective activities? What would change in terms of strategy, activities, processes, organizational structure and
informational flow? Which products and product levels should be targeted? Which applications should be adopted?
How will the existing IT infrastructure be impacted? What are the characteristics of the product to be tagged? How
much information is required? Which application is to be used (i.e., read/write, distance, speed, security, etc.)? The
answers to these questions lead to the mapping of redesign business processes integrating the RFID and EPC
Network technologies (step 9), which are validated with key respondents (step 10). The third and last phase of the
research design validates the scenarios retained in the second phase, both in controlled conditions (proof of concept
or step 11) and in a pilot project in real-life setting (step 12). Although the steps of the field study are displayed in a
linear manner, several iterations occurred during the one-and-a-half-year period of the research.
1. Interviews
1rst tier
Supplier
(Firms S1 and S2)
Focal Firm
(Firm X)
Retailer
(Firm R)
B
u
s
i
n
e
s
s
P
a
r
t
n
e
r
s
D
a
t
a
C
o
l
l
e
c
t
i
o
n
M
e
t
h
o
d
s
T
e
c
h
n
o
l
o
g
i
c
a
l
P
a
r
t
n
e
r
s
a
n
d
U
n
i
v
e
r
s
i
t
y
b
a
s
e
d
-
r
e
s
e
a
r
c
h
L
a
b
o
r
a
t
o
r
y
RFID-EPC
Network
hardware
manufacturers
RFID-EPC
Network
middleware
providers
ERP
consulting
firms
Business process
solution
providers
University
based-research
Laboratory
2. On site
observation
3. Time and
motion studies
4. Focus
groups
5. Dry-runs
6. Proof-of-
concept
1. Interviews
1rst tier
Supplier
(Firms S1 and S2)
Focal Firm
(Firm X)
Retailer
(Firm R)
B
u
s
i
n
e
s
s
P
a
r
t
n
e
r
s
D
a
t
a
C
o
l
l
e
c
t
i
o
n
M
e
t
h
o
d
s
T
e
c
h
n
o
l
o
g
i
c
a
l
P
a
r
t
n
e
r
s
a
n
d
U
n
i
v
e
r
s
i
t
y
b
a
s
e
d
-
r
e
s
e
a
r
c
h
L
a
b
o
r
a
t
o
r
y
RFID-EPC
Network
hardware
manufacturers
RFID-EPC
Network
middleware
providers
ERP
consulting
firms
Business process
solution
providers
University
based-research
Laboratory
2. On site
observation
3. Time and
motion studies
4. Focus
groups
5. Dry-runs
6. Proof-of-
concept
Figure 2: Participating firms and corresponding data collection methods
5.2 Research Sites
Layer 1 of Figure 2 shows the participating firms involved in the research design. These firms are briefly described in
the following paragraphs.
5.2.1 The Focal Firm X’s Profile
Firm X was selected for the case study because of its high interest in projects investigating the potential of RFID
technology. Firm X, which can be considered as the focal firm of the supply chain, is an important player in the
beverage sector in North America; it has almost 6,000 employees and owns one large distribution center (DC)
through which an overall volume of 2.7 million cases transit every year.
Firm X uses various information systems (IS) to optimize its intra- and inter-organizational business processes. For
example, it uses bar code systems to track the cases through its national supply chain. In addition to bar code
systems, the firm uses various business applications such as ERP, WMS and LAN to optimize intra-organizational
business processes, and thus enhance information flow. The firm also uses (i) a b2b portal to facilitate business
transactions with foreign suppliers; (ii) a Transport Management System (TMS) that is linked to a GPS (Global
Positioning System) to improve management of its fleet of trucks; and (iii) an EDI server to communicate with some
key suppliers and retailers.
5.2.2 The Two First-tier Suppliers
These two first-tier suppliers are part of the focal firm’s national supply chain and were referred by Firm X. They are
bottling plants and deliver their production to Firm X on a daily basis. They rely on a paper system, e-mail and fax to
exchange business documents with Firm X. In both cases, employees in Firm X have to re-enter delivery documents
sent by these suppliers into their business applications during the receiving process. This increases document
98
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
processing errors and results in inaccurate data. These two first-tier suppliers use bar codes provided by Firm X to
identify pallets, and do not have any means of tracking their products once they leave their facilities.
5.2.3 The Retailer’s Profile
The retailer chosen for the study is one of North America’s biggest companies in its sector; it owns six distribution
centers with almost 30,000 staff members. This retailer uses various IS such as e-mail, files, databases, LAN, ERP
and WMS to support its intra- and inter-organizational business processes.
In Firm X’s strategic plan for 2007, top management highlighted the importance of increasing productivity, and thus it
is pushing the management team to explore the potential of emerging technologies such as RFID to achieve this
goal. Also, Firm X’s supply chain faces a recurrent inventory discrepancy. For example, “the claims by the retailer
due to the discrepancy between the quantities sent by Firm X and those received at the retailer’s dock can reach six
zeros in terms of dollars,” said one logistics manager at Firm X, positioning the elimination of this inventory
discrepancy as a major driver for the exploration of RFID technology (and the EPC network). Their other motivations
include the need to reduce lead times, respond faster to changing market demands, increase supply chain
information flow and move toward an agile supply chain.
5.3 Data Collection
In the multiple case study approach chosen for the field study, both qualitative and quantitative data were collected
using: (i) focus groups, (ii) on-site observations, (iii) interviews, and (iv) time and motion measures. In addition, other
quantitative data were collected during the PoC including the dry run with managers from the selected supply chain
members and their technological partners in the university based-research laboratory (Layers 1 and 2 of Figure 2).
5.3.1 Focus groups
Various focus groups were conducted in the university-based research center with functional managers from key
supply chain members and IT experts. The main objective of these focus groups was to reach to a consensus on
strategic intent with respect to the use of RFID technology and the EPC network. Several additional rounds of focus
groups were conducted during the intra- and inter-firm scenario building. The preferred scenario (To-be) was
retained so it could be simulated during the dry run and finally during the PoC.
5.3.2 On-Site Observations
On-site observations were conducted in the four research sites in order to analyze the current intra- and inter-
organizational business processes and information flow related to the chosen product value chain and thus enable
researchers to understand the supply chain dynamic and the business environment. Thereafter, all intra- and inter-
organizational business processes were mapped (As-is) using the Aris Toolset and validated through several
iterations by all managers from the four firms. The Aris Toolset is a tool for designing business processes and
creating information technology enterprise architectures. The tool offers extensive functionality for distributed
business process management, and can be used at various stages of research ranging from definition through
analysis to the optimization and implementation of business processes [2].
5.3.3 Interviews
Semi-structured interviews were conducted with (i) managers and operational personnel of all business partners and
(ii) RFID and EPC network experts from technological partners. Each interview lasted approximately two hours and
allowed open-ended probing. All data gathered during these interviews were recorded in a database and reviewed
by key informants of our business and technological partners in order to facilitate the mapping of existing business
processes and assess the feasibility of various scenarios integrating RFID and EPC network.
5.3.4 Time and Motion Measurements
Time and motion measures were recorded on four occasions. Data collected through the time and motion measures
were used during the mapping of the “As-is” and the “To-be” intra- and inter-organizational business processes using
Aris Toolset.
The scenario retained represents the shipping of an order from one supplier facility, its receiving, put-away, picking
(full and mixed pallets) and shipping at Firm X’s DC and finally the receiving at the retailer location.
5.3.5 Dry-Runs and Proof-of-Concept
This scenario is further tested in a proof-of-concept in a laboratory setting where researchers validate it feasibility,
thus bridging the gap between theories and practices (see [55] and [36] for similar approaches).
Prior to the PoC, two dry-runs were conducted in order to test the retained scenario by simulating the physical and
technological environments and the interfaces between supply chain members. All steps of the feasibility
demonstration were monitored in real time (middleware communication with readers, middleware integration with
99
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
ERP, process automation, information flow, human resources impact at the supply chain level) in order to identify
potential misalignment and make the required adjustments before the PoC. The final demonstration of the scenario
was conducted in front of top managers of the firms involved in this research.
Other sources of evidence such as industrial reports, annual reports, Firm X’s Web site and internal documents such
as process documentation, procedures, ERP screens and a wide range of other technical and non-technical
documents were also used when available.
6 Results and Discussion
6.1 Actual Inter- and Intra-Organizational Business Processes
Figure 3 presents the actual inter- and intra- organizational business processes in the three layers of the retail
industry supply chain. Processes are drilled down from the more general (e.g. RECEIVING PROCESS) to the more
detailed (e.g. 2.5. scan pallet) and are interrelated in the three layers. For example, in terms of inter-organizational
business processes, the shipping process in the two suppliers (layer 1 of Figure 3) is linked to the receiving process
of the focal firm (Firm X). In the context intra-organizational processes, the receiving process and the put-away
process of Firm X are interrelated (layer 2 of Figure 3) and likewise for the next layer of the supply chain. However,
in this paper, we will present and discuss only the impacts of RFID and the EPC network on information flow using
inter- and intra-organizational activities related to the information flow within the supply chain (Figure 4).
SUPPLIERS
R
e
c
e
i
v
i
n
g
P
u
t
-
a
w
a
y
P
i
c
k
i
n
g
S
h
i
p
p
i
n
g
R
e
c
e
i
v
i
n
g
P
u
t
-
a
w
a
y
P
i
c
k
i
n
g
S
h
i
p
p
i
n
g
SHIPPING PROCESS
6. Validate Shipping Order
6.1. Verify completed order*
6.2. Generatereport on completed order*
6.3. Reservemanuallyatrailer*
6.4. Bring thetrailer to theshipping dock
6.5. Link manually thetrailer to ashipping destination*
7. Load Physical Resource in the trailer
7.1. Moveforklift to stagingarea
7.2. Scan manuallypallet to associateto theshippingdestination*
7.3. Pick thepallet
7.4. Load thepallet into thetrailer
7.5. Repeat 7.2 to 7.4 until lot is loaded
7.6. Confirmmanuallyend of loading in theWMS*
7.7. Movethetrailer fromtheshipping dock to atemporary area
7.8. Confirmmanuallydeparturefromshipping dock in theERP*
7.9. GeneratemanuallyBOL in theERP*
7.10. Print manuallytheBOL in another location*
7.11. Put theBOL in adedicated box for thetrailer driver*
7.12. Takepossession of theBOL by thetrailer driver*
7.13. Bringthetrailer to theshipping destination
7.14. Confirmin theERP and in theTMS departurefromtemporaryareaand initiate
tracking in theGPS*
PUT-AWAY PROCESS
3. Receive put-away tasks
3.1. Receiveput-away tasks on forklift terminal viaRF*
3.2. Moveforklift to thededicated staging area
3.3. Scan pallet*
3.4. Receivethelocation of thededicated rack for thepallet*
3.5. Movepallet to thededicated rack
3.6. Put-away on thededicated rack
3.7. Scan therack*
3.8. Confirmtheput-away on thededicated rack into WMS*
3.9. Confirmend of task into ERP*
SHIPPING PROCESS (SUPPLIERS)
1. Validate Shipping Order
1.1. Bottlethe products
1.2. Put in cases
1.3. Put in pallets
1.4. Link each pallet to ashipping destination using abarecode*
1.5. Pack each pallet
1.6. Pick pallet fromthepackaging areausing a forklift
1.7. Move loaded forklift to the shipping area
1.8. Consult theproduction plan*
1.9. Load thepallets into thetrailer
1.10. Fill out theBill of Lading (BOL)*
1.11. Transfer thetrailer to theshipping destination
1.12. GivetheBOL at theshipping destination*
RECEIVING PROCESS (RETAILERS)
Similar as thoseof firmX
S
h
i
p
p
i
n
g
R
e
c
e
i
v
i
n
g
FIRM X
RECEIVING PROCESS
1. Receive Bill of lading
1.1. Create aBOL in the ERP*
1.2. Enter data frompaper BOL in theERP*
1.3. Verify quantity by looking up thePurchaseOrder (PO)*
1.4. Generateareport*
1.5. Initiateunloading*
2. Receive Physical Resource
2.1. Drive through portal
2.2. Placeforklift into thetruck
2.3. Pick pallet fromthetruck
2.4. Backup forklift into warehouse
2.5. Scan pallet*
2.6. Confirmvisually the quantity in thepallet*
2.7. Scan license-plateto give it life*
2.8. Move loaded forklift to the dedicated staging area
2.9. Drop pallet into staging area
2.10. Generatemanually aqueueof movement in theWMS*
2.11. Dispatch task manually in theWMS*
2.12. Transmit put-away task manually fromthe WMS to dedicated
forklift via RF through aLAN*
RETAILERS
PICKING PROCESS
4. Receive Customer Order
4.1. Receive acustomer order by EDI or Createacustomer order copy in the
ERP (i.e. fax or phone)*
4.2. Consolidate customer orders ERP*
4.3. Plan manually theweekly delivering waveof picking into WMS*
4.4. Plan manually thedaily delivering waveof picking into WMS*
4.5. Plan manually theshipping batch into WMS*
4.6. Verify manually the inventory into WMS*
4.7. Send picking order into WMS*
5. Pick Physical Resource
5.1. Receive theinformation about thenumber of racks to visit and dedicated
circuit into WMS via RF through aLAN*
5.2. Confirmthenumber of racks to visit and dedicated circuit into WMS*
5.3. Move forklift towards various racks to pick pallet
5.4. Scan the rack licence plate*
5.5. Confirmtherack position into the WMS*
5.6. Scan the storagelicence plate*
5.7. Confirmthestorage position into theWMS*
5.8. Pick thepallet
5.9. Scan the pallet*
5.10. Confirmthe rack number wherepallet is picked into WMS viaRF through
aLAN*
5.11. Moveforklift to thededicated staging area
5.12. Drop pallet at thestaging area
5.13. Moveto thenext rack
5.14. Repeat step 5.4. to 5.11. until theend of pallet on thepickinglist
5.15. Confirmend of picking into WMS viaRF through aLAN*
*: Information-related activities.
ERP: Enterprise ResourcePlanning, WMS: WarehouseManagement System, RF:
Radio Frequency , LAN: Local Area Network, TMS: Transport Management System,
GPS: Global Positioning System.
SUPPLIERS
R
e
c
e
i
v
i
n
g
P
u
t
-
a
w
a
y
P
i
c
k
i
n
g
S
h
i
p
p
i
n
g
R
e
c
e
i
v
i
n
g
P
u
t
-
a
w
a
y
P
i
c
k
i
n
g
S
h
i
p
p
i
n
g
SHIPPING PROCESS
6. Validate Shipping Order
6.1. Verify completed order*
6.2. Generatereport on completed order*
6.3. Reservemanuallyatrailer*
6.4. Bring thetrailer to theshipping dock
6.5. Link manually thetrailer to ashipping destination*
7. Load Physical Resource in the trailer
7.1. Moveforklift to stagingarea
7.2. Scan manuallypallet to associateto theshippingdestination*
7.3. Pick thepallet
7.4. Load thepallet into thetrailer
7.5. Repeat 7.2 to 7.4 until lot is loaded
7.6. Confirmmanuallyend of loading in theWMS*
7.7. Movethetrailer fromtheshipping dock to atemporary area
7.8. Confirmmanuallydeparturefromshipping dock in theERP*
7.9. GeneratemanuallyBOL in theERP*
7.10. Print manuallytheBOL in another location*
7.11. Put theBOL in adedicated box for thetrailer driver*
7.12. Takepossession of theBOL by thetrailer driver*
7.13. Bringthetrailer to theshipping destination
7.14. Confirmin theERP and in theTMS departurefromtemporaryareaand initiate
tracking in theGPS*
PUT-AWAY PROCESS
3. Receive put-away tasks
3.1. Receiveput-away tasks on forklift terminal viaRF*
3.2. Moveforklift to thededicated staging area
3.3. Scan pallet*
3.4. Receivethelocation of thededicated rack for thepallet*
3.5. Movepallet to thededicated rack
3.6. Put-away on thededicated rack
3.7. Scan therack*
3.8. Confirmtheput-away on thededicated rack into WMS*
3.9. Confirmend of task into ERP*
SHIPPING PROCESS (SUPPLIERS)
1. Validate Shipping Order
1.1. Bottlethe products
1.2. Put in cases
1.3. Put in pallets
1.4. Link each pallet to ashipping destination using abarecode*
1.5. Pack each pallet
1.6. Pick pallet fromthepackaging areausing a forklift
1.7. Move loaded forklift to the shipping area
1.8. Consult theproduction plan*
1.9. Load thepallets into thetrailer
1.10. Fill out theBill of Lading (BOL)*
1.11. Transfer thetrailer to theshipping destination
1.12. GivetheBOL at theshipping destination*
RECEIVING PROCESS (RETAILERS)
Similar as thoseof firmX
S
h
i
p
p
i
n
g
S
h
i
p
p
i
n
g
R
e
c
e
i
v
i
n
g
R
e
c
e
i
v
i
n
g
FIRM X
RECEIVING PROCESS
1. Receive Bill of lading
1.1. Create aBOL in the ERP*
1.2. Enter data frompaper BOL in theERP*
1.3. Verify quantity by looking up thePurchaseOrder (PO)*
1.4. Generateareport*
1.5. Initiateunloading*
2. Receive Physical Resource
2.1. Drive through portal
2.2. Placeforklift into thetruck
2.3. Pick pallet fromthetruck
2.4. Backup forklift into warehouse
2.5. Scan pallet*
2.6. Confirmvisually the quantity in thepallet*
2.7. Scan license-plateto give it life*
2.8. Move loaded forklift to the dedicated staging area
2.9. Drop pallet into staging area
2.10. Generatemanually aqueueof movement in theWMS*
2.11. Dispatch task manually in theWMS*
2.12. Transmit put-away task manually fromthe WMS to dedicated
forklift via RF through aLAN*
RETAILERS
PICKING PROCESS
4. Receive Customer Order
4.1. Receive acustomer order by EDI or Createacustomer order copy in the
ERP (i.e. fax or phone)*
4.2. Consolidate customer orders ERP*
4.3. Plan manually theweekly delivering waveof picking into WMS*
4.4. Plan manually thedaily delivering waveof picking into WMS*
4.5. Plan manually theshipping batch into WMS*
4.6. Verify manually the inventory into WMS*
4.7. Send picking order into WMS*
5. Pick Physical Resource
5.1. Receive theinformation about thenumber of racks to visit and dedicated
circuit into WMS via RF through aLAN*
5.2. Confirmthenumber of racks to visit and dedicated circuit into WMS*
5.3. Move forklift towards various racks to pick pallet
5.4. Scan the rack licence plate*
5.5. Confirmtherack position into the WMS*
5.6. Scan the storagelicence plate*
5.7. Confirmthestorage position into theWMS*
5.8. Pick thepallet
5.9. Scan the pallet*
5.10. Confirmthe rack number wherepallet is picked into WMS viaRF through
aLAN*
5.11. Moveforklift to thededicated staging area
5.12. Drop pallet at thestaging area
5.13. Moveto thenext rack
5.14. Repeat step 5.4. to 5.11. until theend of pallet on thepickinglist
5.15. Confirmend of picking into WMS viaRF through aLAN*
*: Information-related activities.
ERP: Enterprise ResourcePlanning, WMS: WarehouseManagement System, RF:
Radio Frequency , LAN: Local Area Network, TMS: Transport Management System,
GPS: Global Positioning System.
Figure 3: Actual inter - and intra organizational business processes
100
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
6.2 Actual Inter- and Intra-Organizational Information Flow
Figure 4 presents actual inter- and intra-organizational activities related to the information flow within the supply
chain. Analysis of these activities leads to the following observation: almost all information-flow-related activities
required a human intervention. For example, in the “shipping” process at the supplier facilities, an employee needs to
manually fill out the Bill of Lading (BOL). Also, in the “receiving” and “shipping” processes at the focal firm’s DC,
there are numerous human interventions such as data entry from the BOL in the ERP during receiving and manually
verifying the completed order during shipping. Finally, the “receiving” process at the retailer’s facilities also requires a
lot of human interventions (e.g. manually verifying quantity received).
Despite the fact that supply chain members used bar codes to track and trace products, numerous problems related
to the use of that technology were noticed during the on-site observations. For example, during the “picking” process
for a mixed pallet at the focal firm’s DC, the employee must scan each box in the pallet.
However, he usually just scans one box and multiplies his observations by the number of similar boxes, which
creates the potential for errors when the cases do not contain the same type of product. Moreover, although there is
a dedicated employee to verify and confirm all quantities shipped from Firm X’s DC to the retailer during the
“shipping” process, there are often complaints from the retailer due to incomplete quantities at its receiving dock.
Resolving inventory discrepancies is becoming a top priority for Firm X’s management team.
Figure 4: Actual inter - and intra-organizational information flow
6.3 Inter- and Intra-Organizational Information Flow Integrating RFID and the EPC
Network
Prior to the simulation of the retained scenario integrating RFID and the EPC network, some technological
assumptions were made.
6.3.1 At the supplier facilities
The product tagging (box and pallet levels) is conducted in each supplier’s facilities. Tagging is done by an
automated RFID printer applicator which encodes, prints the tags and then attaches them to boxes as they pass
through the conveyor. A tag is applied at the pallet level. The shipping dock is equipped with an RFID door portal
equipped with four antennas, and linked to middleware that communicates with the supplier’s EPC-IS and the local
ONS. All data collected by the RFID door portal are communicated in real time to the supplier’s ERP via its EPC-IS.
101
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
6.3.2 At Firm X’s DC
At Firm X’s DC, the receiving and shipping docks are equipped with an RFID door portal with four antennas, and
linked to middleware with direct communication to Firm X’s EPC-IS and the local ONS. As soon as products pass
through the receiving or shipping docks, data are collected by the dedicated RFID door portal and sent in real time to
Firm X’s ERP and WMS via its EPC-IS.
6.3.3 At the retailer’s facilities
At the retailer facilities, the RFID infrastructure is similar to that at Firm X’s DC.
Based on those technological assumptions, two dry runs and the final PoC were conducted in a laboratory setting.
For the retained scenario, the potential impacts of RFID technology and the EPC network on information flow were
investigated at the process level (middle of Figure 3) and at the activity level, at the focus on the activities of the
“receiving process” (bottom of Figure 5).
In the scenario, as soon as pallets of products pass the supplier shipping dock with its RFID door portal, RFID tags
(pallet and box levels) are automatically read and all data collected are automatically transmitted to the middleware,
which triggers the validation of the shipping order. When the order matches the PO in the ERP, the supplier’s
inventory is automatically decreased in the supplier’s WMS, actual quantities in the shipping order are confirmed to
the shipping employee and an electronic ASN (e-ASN) is automatically sent to Firm X. All information contained in
the e-ASN (quantities, date and time of shipment, etc.) is now available and can be shared (depending on access
authorizations) with the whole supply chain via the remote ONS. This increases visibility among all supply chain
members, making it possible to adjust their inventories and have the right product in the right place at the right time.
In case of mismatch, an error message is sent to an employee in order to fix the problem and avoid false shipment of
products.
During the “receiving process” at Firm X’s DC, products are automatically detected and read by the RFID door portal;
the data collected are transmitted to Firm X’s ERP via the middleware. All information related to the products is
validated using the e-ASN, which was downloaded in advance from the remote ONS of the EPC network to Firm X’s
local ONS and then to its ERP and WMS. During this process, quantities are validated and updated without any
human intervention. Also, it was possible during the PoC to (i) automatically send a “confirmation of delivery” to the
supplier in which the received quantities are indicated, and (ii) in parallel, automatically authorize the payment of
those products, thereby enhancing the “cash-to-cash” flow.
All benefits generated by RFID and the EPC network at the supplier’s shipping dock and Firm X’s receiving dock
were also simulated at Firm X’s shipping dock and the retailer’s receiving dock.
All information-flow-related activities (e.g. validate shipping order and fill out the BOL in the supplier’s “shipping
process”; verify quantity by looking up the purchase order and enter data from the BOL in the ERP in Firm X’s
“receiving process”; verify completed order and scan pallet to associate with the shipping destination in Firm X’s
“shipping process”; and verify quantity received in the retailer’s “receiving process”) are now automatically performed
using RFID readers, avoiding the possibility of human errors. Therefore, the quality and integrity of information in the
supply chain are improved.
In the second step of the analysis, the impact of RFID technology and the EPC network was investigated, with a
focus on the activities of the “receiving process” (bottom of Figure 3). The results in that part of Figure 3 indicate that
RFID technology and the EPC network could reduce the total time required to perform information-related activities
in the “receiving process” from 370 s to 7 s, with total saving of almost 98.11%. Almost all information-related
activities in that process would be automated. The human resources involved in that process are also impacted.
Information-related activities in Firm X’s “receiving process” are now followed up by two employees: (i) one employee
who spends half of his time receiving bills of lading (e.g. create a bill of lading in the ERP, enter data from paper BOL
in the ERP, verify quantity, etc.), and (ii) another employee with half of his time reserved for the receiving of physical
resources related to the “receiving process.” Using RFID technology and the EPC network, the total cost related to
this information tracking drops from $55,000 per year to $0 per year.
7 Implications and Conclusion
This paper assesses the impacts of RFID technology and the EPC network on information flow within one retail
supply chain. Our study shows that RFID technology and the EPC network could effectively enhance information
flow within a supply chain by automating almost all information-based activities, synchronizing information and
product flows and allowing end-to-end information visibility in the supply chain, and thus reducing potential human
errors, document handling and processing costs. However, all these benefits can only be realized if supply chain
members’ strategy concerning the adoption of RFID technology and the EPC network is integrated into a broader
strategy that involves moving from a “focal firm focus” or “closed-loop” optimization toward “network collaboration” or
102
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
“open-loop” optimization. Information sharing among supply chain members is therefore the most critical issue. It
raises many questions, such as who owns the RFID tag? Who owns the information? Who can update the data? To
what extent will one firm allow another supply chain member to check strategic information such as the level of
inventories for a specific product? How should real-time data be used for decision making? Which information to
collect at the focal firm and at the supply chain level? And finally, how to configure business rules in the middleware
to convert this raw data into “business intelligence”.
RECEIVING PROCESS
1. Receive Bill of Lading (BOL)
Without RFID-
EPC netowrk
With RFID-
EPC network
Without RFID-
EPC netowrk
With RFID-EPC
network
1.1. Createa BOL in theERP
1.2. Enter data frompaper BOL in theERP
1.3. Verify quantity by looking up thePurchaseOrder (PO)
1.4. Generatea report
1.5. Initiateunloading
2. Receive Physical Resource
2.5. Scan pallet 3
2.6. Visually confirmthequantity in thepallet 1
2.7. Scan license-plateto giveit life 3
2.10. Manually generate a queue of movement in the Warehouse
Management System(WMS)
2.11. Dispatch task in theWMS
2.12. Transmit put-awaytask fromtheWMStodedicatedforklift via
Radio Frequency (RF) through a Local AreaNetwork (LAN)
Total 370 7 1 0
% saving 98.11 100.00
Estimated ($) amount N/A N/A
$55K per year $0K per year
A
c
t
i
v
i
t
i
e
s
l
e
v
e
l
HUMAN RESOURCE
1/2 0
0 1/2
I
n
f
o
r
m
a
t
i
o
n
-
r
e
l
a
t
e
d
a
c
t
i
v
i
t
i
e
s
TIME (in s)
5
1
1
360
3
(A): Automated; (C): Cancelled
Figure 5: Inter- and intra-organizational information flow integrating RFID and the EPC network
103
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
The empirical evidence provided in this paper points to the overriding importance of inter-organizational issues either
at the technical level (i.e. interoperability between the legacy systems of the different supply chain members) or at
the strategic level (i.e. the decision rules to be configured in different middleware applications). The proof-of-concept
approach allowed the participants in this research initiative to identify these issues, discuss them and offer different
solutions. It seemed particularly appropriate to examine the dynamic among supply chain members and to gain a
better understanding of the technical and non-technical issues related to the adoption of inter-organizational
technologies such as RFID technology and the EPC network. Further research needs to be conducted in a real-life
setting in order to validate the results from the university-based research laboratory. For example, a longitudinal
approach in which the firms under study are revisited after their adoption of RFID technology and the EPC network
would be helpful to compare the predicted results with the actual results.
The supply chain under study is only integrated at three layers, which is not necessarily the case in some more
extended supply chains. Consequently, similar studies need to be conducted in larger and more complex supply
chains before the results can be used to make policy suggestions.
Acknowledgments
This research has been made possible through the financial contribution of SSHRC, NSERC and FQRSC.
References
[1] F. H. Abernathy, J. T. Dunlop, J. H. Hammond and D. Weil, Retailing and supply chains in the information age,
Technology in Society, vol. 22, pp. 5–31, 2000.
[2] Aris Toolset. (2006, October) Process design with aris: Easy, smart & powerful. [Online]. Available:
http://www.ids-scheer.com/sixcms/media.php/2188/ARIS_Design_Platform_WP_en_10-2006.pdf.
[3] A. Asif and M. Mandviwalla, Integrating the supply chain with RFID: A technical and business analysis,
Communications of the Association for Information Systems, vol. 15, pp. 393-427, 2005.
[4] I. Benbasat, D. K. Goldstein and M. Mead, The case research strategy in studies of information systems, MIS
Quarterly, vol. 11, No. 3, pp. 369-386, 1987.
[5] H. Bradley, A structure for supply-chain information flows and its application to the alaskan crude oil supply
chain, Logistics Information Management, vol. 15, no. 1, pp. 8-23, 2002.
[6] G. P. Cachon and M. Fisher, Supply chain inventory management and the value of shared information,
Management Science, vol. 46, no. 8, pp. 1032-1048, 2000.
[7] B. Chae, H. R. Yen and C. Sheu, Information technology and supply chain collaboration: Moderating effects of
existing relationships between partners, IEEE Transactions on Engineering Management, vol. 52, no. 4, pp.
440-448, 2005.
[8] J. Collins. (2004, July) Metro launches RFID test center. RFIDJournal. [Online]. Available: http://www.rfid
journal.com/.
[9] J. Collins. (2005, December) Metro is back on track. RFIDJournal. [Online]. Available: http://www.rfidjour
nal.com/.
[10] J. Collins. (2006, September-October) Metro is back on track. RFIDJournal. [Online]. Available: http://www.rf
idjournal.com/.
[11] J. Curtin, R. J. Kauffman and F. J. Riggins, Making the most out of RFID technology: A research agenda for the
study of the adoption, usage and impact of RFID, Information Technology and Management, vol. 8, no. 2, pp.
87-110, 2007.
[12] E. Daniel, H. Wilson, and A. Myers, Adoption of e-commerce by SMEs in the UK, towards a stage model,
International Small Business Journal, vol. 20, no. 3, pp. 253-270, 2002.
[13] B. Dehning, V. J. Richardson and R. W. Zmud, The financial performance effects of IT-based supply chain
management systems in manufacturing firms, Journal of Operations Management, In Press, 2007.
[14] J. Dejonckheere, S. M. Disney, M. R. Lambrecht and D. R. Towill, The impact of information enrichment on the
bullwhip effect in supply chains: A control engineering perspective: Euro young scientists, European Journal of
Operational Research, vol. 153, no. 3, pp. 727-750, 2004.
[15] M. Dell'Orco and R. Giordano, Web community of agents for the integrated logistics of industrial districts,
Proceedings of the 36th Hawaii International Conference on System Sciences, Hawaii, January, 2003.
[16] K. M. Eisenhardt, Building theories from case study research, Academy of Management Review, vol. 14, no. 4,
pp. 532-550, 1989.
[17] EPCglobal. (2004, November) The EPCglobal network. [Online]. Available: http://www.epcglobalinc.org/.
[18] E. Fleisch, and C. Tellkamp, Inventory inaccuracy and supply chain performance: A simulation study of a retail
supply chain, International Journal of Production Economics, vol. 95, no. 3, pp. 373-385, 2005.
[19] D. Folinas, M. Vlachopoulou, V. Manthou and M. Sigala. Modeling the e-volution of supply chain: Cases and
best practices. Internet Research: Electronic Networking Applications and Policy, vol. 14, no. 4, pp. 274-283,
2004.
[20] M. Geuens, M. Brengman, and R. S'Jegers, Food retailing, now and in the future: A consumer perspective,
Journal of Retailing and Consumer Services, vol. 10, no. 4, pp. 241-251, 2003.
104
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
[21] M. Giovanni, Layers and mechanisms: A new taxonomy for the bullwhip effect, International Journal of
Production Economics, vol. 104, no. 2, pp. 365-381, 2006.
[22] GS1 Australia. (2006, July) EPC network Australian demonstrator project report. [Online]. Available: http://ww
w.gs1au.org/assets/documents/news_room/pr/epc_demo_270706.pdf.
[23] M. Gupta and A. Kohli, Enterprise resource planning systems and its Implications for operations function,
Technovation, vol. 26, no. 5-6, pp. 687-696, 2006.
[24] N. Huber and K. Michael, Minimizing product shrinkage across the supply chain using radio frequency
identification: A case study on a major australian retailer, The Sixth International Conference on Mobile
Business (ICMB 2007), Toronto, July, 2007.
[25] P. Jones, C. Clarke-Hill, D. Hillier and D. Comfort, The benefits, challenges and impacts of radio frequency
identification technology (RFID) for retailers in the UK, Marketing Intelligence & Planning, vol. 23, no. 4, pp. 395-
402, 2005.
[26] A. Kambil, and J. D. Brooks. (2002, September) Auto-ID across the value chain: From dramatic potential to
greater efficiency & profit. Auto-ID, Cambridge. [Online]. Available: http://www.autoidlabs.org/.
[27] M. Kärkkäinen, Increasing efficiency in the supply chain for short shelf life goods using RFID tagging,
International Journal of Retail & Distribution Management, vol. 31, no. 10, pp. 529-536, 2003.
[28] J. S. K. Lau, G. Q. Huang and K. L. Mak, Impact of information sharing on inventory replenishment in divergent
supply chains, International Journal of Production Research, vol. 42, no. 5, pp. 919-941, 2004.
[29] H. L. Lee, K. C. So and C.S. Tang, The value of information sharing in a two-level supply chain, Management
Science, vol. 46, no. 5, pp. 626-643, 2000.
[30] I. Lee, Evaluating business process-integrated information technology investment, Business Process
Management Journal, vol. 10, no. 2, pp. 214-233, 2004.
[31] H. M. Leknes and C. Carr, Globalisation, international configurations and strategic implications: The case of
retailing, Long Range Planning, vol. 37, no. 1, pp. 29-49, 2004.
[32] K. S. Leong, M. L. NG, and D. W. Eengels, EPC network architecture. (2005, October) AUTOIDLABS. [Online].
Available: http://www.autoidlabs.org/uploads/.
[33] S. Li and B. Lin, Accessing information sharing and information quality in supply chain management, Decision
Support Systems, vol. 42, no. 3, pp. 1641-1656, 2006.
[34] F. R. Lin and M. Shaw, Reengineering the order fulfillment process in supply chain networks, International
Journal of Flexible Manufacturing Systems, vol. 10, no. 3, pp. 197-229, 1998.
[35] F. R. Lin, S. Huang and S. Lin, Effects of information sharing on supply chain performance in electronic
commerce, IEEE Transactions On Engineering Management, vol. 49, no. 3, pp. 258-268, 2002.
[36] H. Loeh, G. Sung and B. Katzy, The CeTIM virtual enterprise lab – a living, distributed, collaboration Lab, 11th
International Conference on Concurrent Enterprising (ICE’05) University BW, Munich, June, 2005.
[37] R. Mason-Jones and D. R. Towill, Total cycle time compression and the agile supply chain, International Journal
of Production Economics, vol. 62, no. 1-2, pp. 61-73, 1999.
[38] L. Miao and J. Chen, Information sharing with scarce goods in cournot retailers, International Conference on
Services Systems and Services Management, Proceedings of ICSSSM '05, Chonqing, June, 2005.
[39] D. Näslund, Logistics needs qualitative research - especially action research, International Journal of Physical
Distribution & Logistics Management, vol. 32, no. 5, pp. 321-338, 2002.
[40] S. O’Neill. (2002, November) Integrated market management: Seamless information exchange and collaboration
for CPGs and retailers. IBM Institute for Business Value. [Online]. Available: http://www-8.ibm.com/services/pdf/.
[41] N. Patnayakuni and A. Rai. (2002, June) Towards a theoretical framework of digital supply chain integration,
European Conference on Information Systems (ECIS), Gda?sk, June, 2002. [Online]. Available: http://is2.lse.a
c.uk/asp/aspecis/20020127.pdf.
[42] Paxar Central Europe GmbH. (2005, November) Paxar’s perfect performance in Metro’s SCM. [Online].
Available: http://www.paxar-emea.com.
[43] C. Poirier and D. McCollum, RFID strategic implementation and ROI: A practical roadmap to success, J. ROSS
Publishing: 2006.
[44] D. C. Ranasinghe, K. S. Leong, M. L. Ng, D. W. Engels and P. H. Cole. (2004, August) A distributed architecture
for a ubiquitous item identification network. [Online]. Available: http://ubicomp.lancs.ac.uk/workshops/sobs
05/papers/15%20-%20Ranasinghe,%20Damith.pdf.
[45] F. Sahin and E. P. Robinson, Flow coordination and information sharing in supply chains: Review, implications,
and directions for future research, Decision Sciences, vol. 33, no. 4, pp. 505-536, 2002.
[46] S. Sarma. (2006, January.) R&D opportunities and the future of RFID research. [Online]. Available: http://autoi
d.mit.edu/CS/forums/thread/151.aspx.
[47] S. Sarma, RFID: Integrating RFID, Queue, vol. 2, no. 7, pp. 50-57, 2004.
[48] A. Seidmann and A. Sundarajan. (1997, January) Sharing logistics information across organizations:
Technology, competition and contracting, Working Papers from Rochester, Business - Operations Management.
[Online]. Available: http://oz.stern.nyu.edu/papers/slog.html.
[49] D. Seifert, Collaborative planning, forecasting and replenishment. How to create a supply-chain advantage.
AMACOM, New-York: 2003.
[50] D. H. Shih, P.-L. Sun and B. Lin, Securing industry-wide EPCglobal network with ws-security, Industrial
Management & Data Systems, vol. 105, no. 7, pp. 972-996, 2005.
[51] A. D. Smith, Exploring radio frequency identification technology and its impact on business systems, Information
Management & Computer Security, vol. 13, no. 1, pp. 16-28, 2005.
105
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
[52] L. Sparks and B. A. Wagner, Retail exchanges: A research agenda, Supply Chain Management, vol. 8, no. 1, pp.
17-25, 2003.
[53] B. Srivastava, Radio frequency ID technology: The next revolution in SCM, Business Horizons, vol. 47, no. 6, pp.
60-68, 2004.
[54] I. Stuart, D. McCutcheon, R. Handfield, R. McLachlin and D. Samson, Effective case research in operations
management: A process perspective, Journal of Operations Management, vol. 20, no. 5, pp. 419-433, 2002.
[55] A. Thorne, D. McFarlane, S. Hodges, S. Smith, M. Harrison, J. Brusey and A. Garcia. (2003, June) The Auto-ID
automation laboratory: Building tomorrow's systems today. AUTOIDLABS. [Online]. Available: http://www.auto
idlabs.org/uploads/.
[56] UsingRFID. (2005, December) Study of Wal-Mart reveals first benefits of RFID. [Online]. Available:
http://www.usingrfid.com/.
[57] UsingRFID. (2004, April) RFID in European retail becoming first priority. [Online]. Available: http://www.us
ingrfid.com/news/read.asp?lc=b6324mx151zo.
[58] C. Voss, N. Tsikriktsis and M. Frohlich, Case research in operations management, International Journal of
Operations & Production Management, vol. 22, no. 2, pp. 195-219, 2002.
[59] H. H. Warren. (2005, October) RFID: Challenges and opportunities in supply chain management in the Meir
Rosenblatt Memorial Series. [Online]. Available: http://bctim.wustl.edu/topics/topics.cfm?categories_id=33&se
archid=127.
[60] A. Wattky and G. Neubert, Integrated supply chain network through process approach and collaboration,
Industrial Informatics. INDIN '04. 2004 2nd IEEE International Conference on Industrial Informatics, Berlin, June,
2004, pp. 58-63.
[61] D. C. Wyld, RFID 101: The next big thing for management, Management Research News, vol. 29, no. 4, pp.
154-173, 2006.
[62] R. Yin, Case study research: Design and methods, Newbury Park, CA: Sage: 1994.
[63] C. Zhang, G. W. Tan, D. J. Robb and X. Zheng, Sharing shipment quantity information in the supply chain,
Omega, vol. 34, no. 5, pp. 427-438, 2006.
doc_822976252.pdf
RFID technology and the Electronic Product Code (EPC) network have attracted considerable interest from businesses and academics in recent years. The interest is even stronger in the retail industry where firms such as Best Buy, Wal-Mart, Tesco, Target and Metro AG are capitalizing on the potential of these technologies.
92
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Samuel Fosso Wamba
1
and Harold Boeck
2
1
École Polytechnique de Montréal, [email protected]
2
Université de Sherbrooke, [email protected]
Received 26 July 2007; received in revised form 7 January 2008; accepted 22 January 2008
Abstract
RFID technology and the Electronic Product Code (EPC) network have attracted considerable interest from
businesses and academics in recent years. The interest is even stronger in the retail industry where firms such
as Best Buy, Wal-Mart, Tesco, Target and Metro AG are capitalizing on the potential of these technologies.
Based on a field study conducted in a three-layer retail supply chain, this paper tests several scenarios
integrating Radio Frequency Identification (RFID) technology and the EPC network and evaluates, in a
laboratory setting, their potential as enablers of information flow within a retail supply chain. Using an “open-
loop” adoption strategy, our preliminary results indicate that RFID technology and the EPC network (i) hold
some potential that can be grasped through Business Process Management (BPM), (ii) enable the
synchronization of information flow with product flow in a given supply chain, and thus, (iii) provide a better level
of information integration between supply chain members. The results suggest that these “new waves” of
information technology (IT) could in fact provide end-to-end information flow between supply chain members.
Key words: Retail industry, RFID, BPM, EPC network, information flow, warehouse management,
proof-of-concept.
93
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
1 Introduction
The main objective of this paper is to investigate the potential of RFID (Radio-Frequency Identification) technology
and the EPC (Electronic Product Code) network as enablers of information flow in a Business-to-Business electronic
commerce (B2B e-commerce) context. By focusing on a single “open-loop” supply chain initiative in the retail
industry, the paper examines the issues related to the determination, validation and simulation of selected B2B e-
commerce scenarios integrating RFID technology and the EPC network in a university-based research laboratory
setting. As the research objective is to improve our understanding of the potential of RFID technology and the EPC
network, the research design corresponds to an exploratory research initiative.
This paper is organized as follows. Section 2 presents RFID technology and the EPC network, followed in Section 3
by a description of changes in the retail industry and the potential for RFID technology and the EPC network in that
industry. In Section 4, a review of literatures on (i) supply chain management and information flow and (ii) information
technology and information flow creates a theoretical basis for our research. In Section 5, we present the
methodology and the research design of the study. In Section 6, the results and discussions are presented. Finally,
in Section 7, we discuss the implications and draw our conclusions.
2 RFID Technology and the EPC Network
2.1 RFID Technology
In general, RFID technology has been considered as “the next big thing for management” [61] p. 154, and “the next
revolution in supply chain” [53] p. 1. It is proposed that the technology helps to streamline supply chains. This “new
wave” of IT has recently attracted growing interest from the industrial and academic communities. The interest is
even stronger in the retail industry, where firms such as Best Buy, Wal-Mart, Tesco, Target and Metro AG are
planning to capitalize on the potential of these technologies. However, RFID is not new. It has its origins in military
applications during World War II, when the British Air Force used RFID technology to distinguish allied aircraft from
enemy aircraft with radar technology [3].
RFID is a technology that uses radio waves to automatically identify individual items or products in real time in a
given supply chain [43]. Like bar codes, biometrics and magnetic stripes, RFID technology belongs to the broader
class of Automatic Identification and Data Capture (AIDC) technologies. Any RFID system is made up of three major
layers: (i) a tag or transponder containing a chip, which is attached to, or embedded in, a physical object to be
identified; (ii) a reader, also called an interrogator, and its antennas, which communicate with the transponder
without requiring a line of sight; and (iii) a host server equipped with a middleware application that manages the
RFID equipment, filters data and interacts with enterprise applications. RFID is often compared to bar coding
systems, both conceptually and in terms of its operational performance. Even though both technologies belong to the
AIDC family, RFID has superior operational performance. Indeed, unlike bar coding, which uses optical laser or
imaging technology to scan and read a printed label, RFID technology uses radio frequency signals to read or write
information on a product equipped with a tag [61]. Moreover, RFID technology (i) does not require a line of sight, (ii)
can read many tags simultaneously, (iii) offers unique item-level identification (when using EPC codes) [59], (iv) is
digital and read-write capable, (v) can store data or trigger access to external data, and (vi) can store more relevant
data (e.g. serial number, location, lot number, status, etc.) [61]. Information can be accessed much faster and more
easily with RFID than with bar coding.
2.2 The EPC Network as a Backbone of RFID Technology
The EPC network, also called the Auto-ID model, was proposed and developed by the Auto-ID Center at MIT as a
standard for RFID infrastructure in terms of networking support [53], [17], [32]. This network is based on the EPC,
which is a new numbering format for uniquely identifying items or products. The EPC network facilitates an “open-
loop” standards-based environment, enabling end-to-end EPC information exchange within a supply chain [50].
Moreover, the vision for this network is to offer an intelligent infrastructure capable of linking objects, information,
computers and people [44], and thus creating an “Internet of Things.”
The EPC acts as a pointer to data on the network, unlike a standard RFID tag, which has much of the data
associated with tagged items and products embedded on the tags themselves [47]. Basically, the EPC network is
made up of five components [32] (see Figure 1): (i) the EPC, which can be incorporated into an RFID chip (also
called an EPC tag) and attached to a physical object, product or item, can provide information such as the product’s
manufacturer, category, size, manufacturing date, expiration date, final destination, etc. (ii) The RFID reader
identifies any EPC tag within its reading range, reads it and forwards the EPC information to the SAVANT. (iii) The
SAVANT is the middleware system located between the readers and the firm’s application systems. The middleware
is at the core of the EPC network. Indeed, it is where business rules are configured. Based on those business rules,
the middleware is responsible for data filtering and aggregation, manages real-time read events and information,
94
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
provides alerts, and interacts with the EPC Information Service (EPC-IS) and the local Object Name Service (ONS).
(iv) The EPC-IS is the gateway between any requester of information and the firm’s AS and internal databases. It is
responsible for information access and exchange within a supply chain. (v) The local ONS is an authoritative
directory of information sources available to describe all EPC tags used in a supply chain [17].
Basically, the first three components of the EPC network correspond to those of an RFID system. However, the EPC
network goes beyond the standard implementation by adding a unique product/item identification through the EPC
code, the local ONS and the EPC-IS, which provide a means of sharing information more easily in a given supply
chain. The EPC network evolves constantly: new standards are emerging while others are ratified. For example, the
name SAVANT as designation of the middleware has changed to EPC middleware. But the present study is based
on the architecture of Figure 1.
Figure 1: The EPC network infrastructure
3 The Retail Industry: Its Evolution and the Potential for RFID
Technology and the EPC Network
3.1 Changes in the Retail Industry
The retail industry, like other sectors, is characterized by globalization, aggressive competition, shorter product life
cycles, increasing cost pressures and the rise of customized demand with high product variants [33].
In the last 30 years, the retail industry has passed through many transformations. The traditional corner store
evolved into multitude types of configurations such as the supermarket, hypermarket, discount store, convenience
store, specialty retailer, gas station store and virtual store [20]. These transformations have had a huge impact on
the size of stores and the number of Stock Keeping Units (SKUs) managed within those structures. For instance, the
size of a traditional supermarket grew from 600 m
2
to almost 4,000 m
2
for superstores [20], and the number of SKUs
in a typical US food store has risen from nearly 6,000 in the 1960s to almost 40,000 today, leading to an explosion in
daily sales transactions. Therefore, capturing sales information using manual, and therefore error-prone, methods
has become almost obsolete [1].
Manual capture of sales information increases transaction costs and can cause inventory inaccuracies [18].
Moreover, the retail industry is facing new challenges such as managing the short shelf-life of grocery goods, strict
traceability requirements and the need for temperature control in the retail supply chain [27]. In this context, RFID
technology and the EPC network are seen as enablers of supply chain optimization.
3.2 RFID and the EPC Network’s Potential in the Retail Industry
In the retail industry, supply chain management (SCM) is seen as a strategic activity where RFID technology and the
EPC network could enhance performance. Indeed, the link between Internet-based back-end infrastructure and the
EPC network has the ability to create the so-called “Internet of Things,” enabling all supply chain players to access or
share real-time product information over the Net [50]. The unique potential of the combination of RFID technology
and the EPC network has driven major retailers such as Wal-Mart, Tesco, Metro AG, 7-Eleven and Best Buy, to
conduct several pilot projects in order to evaluate how to integrate these technologies into their business processes
95
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
[25], [53]. For example, by adopting RFID technology, Wal-Mart stands to achieve almost $600 million in annual
savings by reducing out-of-stock supply chain costs [3]. Procter & Gamble has also estimated that it could save
almost $400 million annually in inventory by deploying an RFID system [53], [51].
A recent independent study conducted by the University of Arkansas at Wal-Mart stores over a period of 29 weeks
has already shown significant return on investment (ROI). Indeed, the study shows that “Wal-Mart RFID-enabled
stores” were 63% more effective in replenishing out-of-stocks than stores without RFID. Moreover, the results
highlighted the fact that a 16% reduction in out-of-stocks was achieved, and that products equipped with EPC tags
were replenished three times faster than comparable items using standard bar code technology. Finally, manual
orders placed by these stores were reduced by almost 10%, contributing to the overall inventory reduction [56].
Since 2003, Metro Group in Germany has been running an RFID-enabled “Future Store,” where RFID technology is
used live for various applications throughout the supply chain [8]. By early 2005, Metro Group was already noticing
an ROI: a 14% reduction in warehouse labor, 11% increase in stock availability, 18% reduction in lost goods, and a
tag read rate at the pallet level of almost 90% [9]. Since then, this read rate has improved dramatically, reaching
100% [42]. Moreover, based on their early deployment, Metro Group found that the combination of RFID and
Advanced Shipping Notice (ASN) over Metro Link electronic data interchange (EDI) would lead to potential savings
of almost $10.9 billion per year [10]. In Europe, the interest in RFID technology and the EPC network is also strong.
Indeed, in a survey conducted in Europe among major retailers, the results indicated that most firms that have
experienced RFID technology preferred the EPC network as the networking infrastructure for information exchange
[57].
The enthusiasm about RFID and the EPC network is also high among major retailers in Australia. Indeed, a pilot
project has just been conducted there to investigate the potential of these technologies in the supply chain and
involved tracking the exchange of ownership and the movement of products through the entire supply chain from
manufacturer to retailer. It demonstrated that the introduction of RFID technology and the EPC network in a supply
chain can lead to cost reductions and enhance efficiency, visibility, information timeliness and accuracy [22]. Also, in
a recent study, [24], using a case study approach, reported that RFID technology could minimize product shrinkage
and provide end-to-end visibility across the whole supply chain.
The main thrust of this paper is therefore that RFID technology and the EPC network can act as enablers of
information flow within a supply chain.
4 Supply Chain Management, Information Technology and
Information Flow
4.1 Supply Chain Management and Information Flow
Supply Chain Management (SCM) is “an integrating approach to manage the overall flow of products, information
and finance from the supplier’s supplier to the customer’s customer” [19] p. 274. It has become vital to any
business’s success in the context of e-commerce in general and b2b e-commerce in particular, which by definition,
implies “exchanging and sharing information within the firm itself or with external stakeholders” [12] p. 254.
The flow of information between supply chain members is recognized to be a strategic activity that enhances supply
chain performance. Indeed, exchanging and sharing information to improve supply chain performance is becoming
critical to achieving competitive advantage [60]. The integration of information flow in a given supply chain involves
many activities such as the sharing of information about production, inventory level, delivery, shipment, capacity,
sales and performance within firms and between supply chain members [41], [21]. A high level of information flow
integration is considered to be a key determinant of a firm’s efficiency within a given supply chain. Indeed, [41] p.
1022 state that “firms can gain performance benefits from integrating information flows across the supply chain and
optimizing physical stocks and flows from a supply chain-wide perspective.” As a matter of fact, logistical problems
are viewed as primarily information-sharing problems [15].
Information sharing, defined as “the extent to which critical and proprietary information is communicated to one’s
supply chain partner” [7] p. 441 is a dimension of information flow and is considered a success factor for any SCM
strategy. Better information sharing in a given supply chain can enhance supply chain coordination, and thus reduce
the bullwhip effect [38], defined as the demand information variability in a supply chain, which is amplified at each
stage as it moves up the supply chain. Indeed, [33] suggest that by “taking the data available and sharing it with
other parties within the supply chain, an organization can speed up the information flow in the supply chain, improve
the efficiency and effectiveness of the supply chain, and respond to customer changing needs quicker” [33] p. 1641.
In general, four types of information are shared among supply chain members: (i) order information (e.g. order
quantities and prices), (ii) operation information (e.g. inventory levels), (iii) strategic information (e.g. point-of-sale
(POS) information), and (iv) strategic and competition information (e.g. demand information regarding a competitor’s
products) [48], [35].
96
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
Many academic researchers have been working on the impact of information flow on supply chain performance. For
example, [34] evaluated the potential of information sharing and its impact on the order fulfillment process. They
concluded that more information sharing leads to greater visibility across the supply chain, and thus contributes to
lower inventory levels. [38], using an experimental simulation, investigated the impact of different levels of
information sharing on the inventory replenishment of enterprises in a three-stage distribution supply chain according
to various performance indicators. Using analytical models, [29] arrived at the conclusion that information sharing
within a supply chain could lower supply chain costs from 12%–23%. [6] used a modeling approach to analyze the
value of information sharing by comparing a traditional information policy without shared information with a full
information policy that relies on shared information. They found that information sharing results in a 2.2% supply
chain cost reduction compared to the traditional information policy. Using a simulation approach, [37] found that
supply chain integration with exchange of information enables lead times to be reduced within the supply chain.
Moreover, better information sharing within a supply chain can help to reduce the bullwhip effect [14].
4.2 Information Technology and Information Flow
Over the decades, many information systems have been developed to help firms to achieve better intra- and inter-
organizational information flow. Indeed, information technology enables firms involved in a supply chain to share
demand and inventory data quickly and inexpensively [6]. For example, inter-organization information systems such
as EDI, database management systems (DBMS) and Web-based technologies have been adopted to support inter-
organizational information sharing at various stages of the supply chain and thus contribute to enhancing supply
chain performance through business process optimization. EDI is considered to be “a critical IT application in re-
engineering inter-organizational information exchanges for electronic orders and invoices” [30] p. 219, leading to a
better management of the just-in-time materials flow among supply chain members [30]; DBMS and Web-based
technologies allow accurate and timely information flows within a supply chain [63]. As well, IT-enabled information
flow can lead to indirect benefits such as order cost reductions, reduced lead times, and consequently, inventory
savings [21]. From an SCM perspective, IT can improve inventory management by reducing inventory levels, holding
costs, and spoilage, and thus contributes to increased profitability [13]. In this broader context of SCM, IT is
considered to be a critical enabler of supply chain optimization.
In the context of intra-business process optimization, Enterprise Resource Planning (ERP) systems have been
adopted to achieve flexible information flows, enabling quick deliverability through shorter planning cycles, availability
of up-to-date information, reduction of transmission times, elimination of double data handling and, as a result,
enhanced intra-organizational communications and data visibility [15] and increased productivity of work processes
[23]. Among AIDC technologies, bar coding has been used to reduce information distortion within a supply chain [5],
leading to better information quality and overall supply chain performance. For example, the use of bar coding in the
consumer packaged goods industry led to annual savings of almost $17 billion by 1997 [26].
In the retail industry context, in addition to information technology applications such as Materials Requirement
Planning (MRP), Manufacturing Resources Planning (MRPII), Warehouse Management System (WMS) and
Advanced Planning and Scheduling (APS), many firms are exploring the potential of new customer-focused concepts
such as Quick Response (QR), Efficient Consumer Response (ECR), Vendor Managed Inventory (VMI), Point of
Sale (POS) and Collaborative Planning, Forecasting and Replenishment (CPFR) in order to support their intra- and
inter-organizational business processes and information flow [49], [52]. For example, suppliers are using VMI to
monitor retailers’ inventory levels and thereby enhancing the decision-making process for replenishment frequency,
order quantities, delivery mode, and the timing of replenishments [45].
Thus, the benefits of IT for information flow are clearly highlighted in various research papers. A preliminary review of
literature shows that very few academic papers have focused on RFID technology and the EPC network as enablers
of information flow in the supply chain. However, many authors, such as [46] and [11] have called for research on
this topic.
5 Methodology
5.1 Research Design
The research design consists of a longitudinal field research conducted in one retail supply and corresponds clearly
to an exploratory research initiative. This appears appropriate since it enables researchers to capture a real picture
of each firm. Moreover, a “case study is a research strategy which focuses on understanding the dynamics present
within single settings” [16] p. 533. This research strategy allows researchers to fully understand the dynamic within a
given situation, focus on emerging phenomena and eventually induce theories [4]. Case studies are also well suited
to answer research questions such as “why” and “how” things are done [62]. Moreover, case study research is
becoming more widely used in the logistics and operation management fields; its importance has been highlighted by
many authors such as [39], [58], [54].
97
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
The longitudinal field research entailed four case studies and was conducted in 3 phases made of 12 consecutive
steps. The first phase also called the “opportunity-seeking phase” is made of the first six steps. Step 1 represents the
starting point, with a thorough assessment of the corporate motivations underlying the adoption of RFID technology
and the EPC Network. Steps 2 and 3 allow a sharper focus on specific critical activities that will be targeted by an
RFID and EPC Network implementation. Steps 4, 5 and 6 reflect the current situation in terms of actual supply chain
dynamics and existing intra- and inter-organizational business processes. The second phase or the “scenario
building phase” is used to evaluate specific RFID and EPC Network opportunities (step 7) and assesses the potential
of RFID and EPC Network applications (step 8). In the Step 8, several questions related to business and
technological concerns are evaluated and need to be answered. For example: How will firms in the network handle
their respective activities? What would change in terms of strategy, activities, processes, organizational structure and
informational flow? Which products and product levels should be targeted? Which applications should be adopted?
How will the existing IT infrastructure be impacted? What are the characteristics of the product to be tagged? How
much information is required? Which application is to be used (i.e., read/write, distance, speed, security, etc.)? The
answers to these questions lead to the mapping of redesign business processes integrating the RFID and EPC
Network technologies (step 9), which are validated with key respondents (step 10). The third and last phase of the
research design validates the scenarios retained in the second phase, both in controlled conditions (proof of concept
or step 11) and in a pilot project in real-life setting (step 12). Although the steps of the field study are displayed in a
linear manner, several iterations occurred during the one-and-a-half-year period of the research.
1. Interviews
1rst tier
Supplier
(Firms S1 and S2)
Focal Firm
(Firm X)
Retailer
(Firm R)
B
u
s
i
n
e
s
s
P
a
r
t
n
e
r
s
D
a
t
a
C
o
l
l
e
c
t
i
o
n
M
e
t
h
o
d
s
T
e
c
h
n
o
l
o
g
i
c
a
l
P
a
r
t
n
e
r
s
a
n
d
U
n
i
v
e
r
s
i
t
y
b
a
s
e
d
-
r
e
s
e
a
r
c
h
L
a
b
o
r
a
t
o
r
y
RFID-EPC
Network
hardware
manufacturers
RFID-EPC
Network
middleware
providers
ERP
consulting
firms
Business process
solution
providers
University
based-research
Laboratory
2. On site
observation
3. Time and
motion studies
4. Focus
groups
5. Dry-runs
6. Proof-of-
concept
1. Interviews
1rst tier
Supplier
(Firms S1 and S2)
Focal Firm
(Firm X)
Retailer
(Firm R)
B
u
s
i
n
e
s
s
P
a
r
t
n
e
r
s
D
a
t
a
C
o
l
l
e
c
t
i
o
n
M
e
t
h
o
d
s
T
e
c
h
n
o
l
o
g
i
c
a
l
P
a
r
t
n
e
r
s
a
n
d
U
n
i
v
e
r
s
i
t
y
b
a
s
e
d
-
r
e
s
e
a
r
c
h
L
a
b
o
r
a
t
o
r
y
RFID-EPC
Network
hardware
manufacturers
RFID-EPC
Network
middleware
providers
ERP
consulting
firms
Business process
solution
providers
University
based-research
Laboratory
2. On site
observation
3. Time and
motion studies
4. Focus
groups
5. Dry-runs
6. Proof-of-
concept
Figure 2: Participating firms and corresponding data collection methods
5.2 Research Sites
Layer 1 of Figure 2 shows the participating firms involved in the research design. These firms are briefly described in
the following paragraphs.
5.2.1 The Focal Firm X’s Profile
Firm X was selected for the case study because of its high interest in projects investigating the potential of RFID
technology. Firm X, which can be considered as the focal firm of the supply chain, is an important player in the
beverage sector in North America; it has almost 6,000 employees and owns one large distribution center (DC)
through which an overall volume of 2.7 million cases transit every year.
Firm X uses various information systems (IS) to optimize its intra- and inter-organizational business processes. For
example, it uses bar code systems to track the cases through its national supply chain. In addition to bar code
systems, the firm uses various business applications such as ERP, WMS and LAN to optimize intra-organizational
business processes, and thus enhance information flow. The firm also uses (i) a b2b portal to facilitate business
transactions with foreign suppliers; (ii) a Transport Management System (TMS) that is linked to a GPS (Global
Positioning System) to improve management of its fleet of trucks; and (iii) an EDI server to communicate with some
key suppliers and retailers.
5.2.2 The Two First-tier Suppliers
These two first-tier suppliers are part of the focal firm’s national supply chain and were referred by Firm X. They are
bottling plants and deliver their production to Firm X on a daily basis. They rely on a paper system, e-mail and fax to
exchange business documents with Firm X. In both cases, employees in Firm X have to re-enter delivery documents
sent by these suppliers into their business applications during the receiving process. This increases document
98
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
processing errors and results in inaccurate data. These two first-tier suppliers use bar codes provided by Firm X to
identify pallets, and do not have any means of tracking their products once they leave their facilities.
5.2.3 The Retailer’s Profile
The retailer chosen for the study is one of North America’s biggest companies in its sector; it owns six distribution
centers with almost 30,000 staff members. This retailer uses various IS such as e-mail, files, databases, LAN, ERP
and WMS to support its intra- and inter-organizational business processes.
In Firm X’s strategic plan for 2007, top management highlighted the importance of increasing productivity, and thus it
is pushing the management team to explore the potential of emerging technologies such as RFID to achieve this
goal. Also, Firm X’s supply chain faces a recurrent inventory discrepancy. For example, “the claims by the retailer
due to the discrepancy between the quantities sent by Firm X and those received at the retailer’s dock can reach six
zeros in terms of dollars,” said one logistics manager at Firm X, positioning the elimination of this inventory
discrepancy as a major driver for the exploration of RFID technology (and the EPC network). Their other motivations
include the need to reduce lead times, respond faster to changing market demands, increase supply chain
information flow and move toward an agile supply chain.
5.3 Data Collection
In the multiple case study approach chosen for the field study, both qualitative and quantitative data were collected
using: (i) focus groups, (ii) on-site observations, (iii) interviews, and (iv) time and motion measures. In addition, other
quantitative data were collected during the PoC including the dry run with managers from the selected supply chain
members and their technological partners in the university based-research laboratory (Layers 1 and 2 of Figure 2).
5.3.1 Focus groups
Various focus groups were conducted in the university-based research center with functional managers from key
supply chain members and IT experts. The main objective of these focus groups was to reach to a consensus on
strategic intent with respect to the use of RFID technology and the EPC network. Several additional rounds of focus
groups were conducted during the intra- and inter-firm scenario building. The preferred scenario (To-be) was
retained so it could be simulated during the dry run and finally during the PoC.
5.3.2 On-Site Observations
On-site observations were conducted in the four research sites in order to analyze the current intra- and inter-
organizational business processes and information flow related to the chosen product value chain and thus enable
researchers to understand the supply chain dynamic and the business environment. Thereafter, all intra- and inter-
organizational business processes were mapped (As-is) using the Aris Toolset and validated through several
iterations by all managers from the four firms. The Aris Toolset is a tool for designing business processes and
creating information technology enterprise architectures. The tool offers extensive functionality for distributed
business process management, and can be used at various stages of research ranging from definition through
analysis to the optimization and implementation of business processes [2].
5.3.3 Interviews
Semi-structured interviews were conducted with (i) managers and operational personnel of all business partners and
(ii) RFID and EPC network experts from technological partners. Each interview lasted approximately two hours and
allowed open-ended probing. All data gathered during these interviews were recorded in a database and reviewed
by key informants of our business and technological partners in order to facilitate the mapping of existing business
processes and assess the feasibility of various scenarios integrating RFID and EPC network.
5.3.4 Time and Motion Measurements
Time and motion measures were recorded on four occasions. Data collected through the time and motion measures
were used during the mapping of the “As-is” and the “To-be” intra- and inter-organizational business processes using
Aris Toolset.
The scenario retained represents the shipping of an order from one supplier facility, its receiving, put-away, picking
(full and mixed pallets) and shipping at Firm X’s DC and finally the receiving at the retailer location.
5.3.5 Dry-Runs and Proof-of-Concept
This scenario is further tested in a proof-of-concept in a laboratory setting where researchers validate it feasibility,
thus bridging the gap between theories and practices (see [55] and [36] for similar approaches).
Prior to the PoC, two dry-runs were conducted in order to test the retained scenario by simulating the physical and
technological environments and the interfaces between supply chain members. All steps of the feasibility
demonstration were monitored in real time (middleware communication with readers, middleware integration with
99
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
ERP, process automation, information flow, human resources impact at the supply chain level) in order to identify
potential misalignment and make the required adjustments before the PoC. The final demonstration of the scenario
was conducted in front of top managers of the firms involved in this research.
Other sources of evidence such as industrial reports, annual reports, Firm X’s Web site and internal documents such
as process documentation, procedures, ERP screens and a wide range of other technical and non-technical
documents were also used when available.
6 Results and Discussion
6.1 Actual Inter- and Intra-Organizational Business Processes
Figure 3 presents the actual inter- and intra- organizational business processes in the three layers of the retail
industry supply chain. Processes are drilled down from the more general (e.g. RECEIVING PROCESS) to the more
detailed (e.g. 2.5. scan pallet) and are interrelated in the three layers. For example, in terms of inter-organizational
business processes, the shipping process in the two suppliers (layer 1 of Figure 3) is linked to the receiving process
of the focal firm (Firm X). In the context intra-organizational processes, the receiving process and the put-away
process of Firm X are interrelated (layer 2 of Figure 3) and likewise for the next layer of the supply chain. However,
in this paper, we will present and discuss only the impacts of RFID and the EPC network on information flow using
inter- and intra-organizational activities related to the information flow within the supply chain (Figure 4).
SUPPLIERS
R
e
c
e
i
v
i
n
g
P
u
t
-
a
w
a
y
P
i
c
k
i
n
g
S
h
i
p
p
i
n
g
R
e
c
e
i
v
i
n
g
P
u
t
-
a
w
a
y
P
i
c
k
i
n
g
S
h
i
p
p
i
n
g
SHIPPING PROCESS
6. Validate Shipping Order
6.1. Verify completed order*
6.2. Generatereport on completed order*
6.3. Reservemanuallyatrailer*
6.4. Bring thetrailer to theshipping dock
6.5. Link manually thetrailer to ashipping destination*
7. Load Physical Resource in the trailer
7.1. Moveforklift to stagingarea
7.2. Scan manuallypallet to associateto theshippingdestination*
7.3. Pick thepallet
7.4. Load thepallet into thetrailer
7.5. Repeat 7.2 to 7.4 until lot is loaded
7.6. Confirmmanuallyend of loading in theWMS*
7.7. Movethetrailer fromtheshipping dock to atemporary area
7.8. Confirmmanuallydeparturefromshipping dock in theERP*
7.9. GeneratemanuallyBOL in theERP*
7.10. Print manuallytheBOL in another location*
7.11. Put theBOL in adedicated box for thetrailer driver*
7.12. Takepossession of theBOL by thetrailer driver*
7.13. Bringthetrailer to theshipping destination
7.14. Confirmin theERP and in theTMS departurefromtemporaryareaand initiate
tracking in theGPS*
PUT-AWAY PROCESS
3. Receive put-away tasks
3.1. Receiveput-away tasks on forklift terminal viaRF*
3.2. Moveforklift to thededicated staging area
3.3. Scan pallet*
3.4. Receivethelocation of thededicated rack for thepallet*
3.5. Movepallet to thededicated rack
3.6. Put-away on thededicated rack
3.7. Scan therack*
3.8. Confirmtheput-away on thededicated rack into WMS*
3.9. Confirmend of task into ERP*
SHIPPING PROCESS (SUPPLIERS)
1. Validate Shipping Order
1.1. Bottlethe products
1.2. Put in cases
1.3. Put in pallets
1.4. Link each pallet to ashipping destination using abarecode*
1.5. Pack each pallet
1.6. Pick pallet fromthepackaging areausing a forklift
1.7. Move loaded forklift to the shipping area
1.8. Consult theproduction plan*
1.9. Load thepallets into thetrailer
1.10. Fill out theBill of Lading (BOL)*
1.11. Transfer thetrailer to theshipping destination
1.12. GivetheBOL at theshipping destination*
RECEIVING PROCESS (RETAILERS)
Similar as thoseof firmX
S
h
i
p
p
i
n
g
R
e
c
e
i
v
i
n
g
FIRM X
RECEIVING PROCESS
1. Receive Bill of lading
1.1. Create aBOL in the ERP*
1.2. Enter data frompaper BOL in theERP*
1.3. Verify quantity by looking up thePurchaseOrder (PO)*
1.4. Generateareport*
1.5. Initiateunloading*
2. Receive Physical Resource
2.1. Drive through portal
2.2. Placeforklift into thetruck
2.3. Pick pallet fromthetruck
2.4. Backup forklift into warehouse
2.5. Scan pallet*
2.6. Confirmvisually the quantity in thepallet*
2.7. Scan license-plateto give it life*
2.8. Move loaded forklift to the dedicated staging area
2.9. Drop pallet into staging area
2.10. Generatemanually aqueueof movement in theWMS*
2.11. Dispatch task manually in theWMS*
2.12. Transmit put-away task manually fromthe WMS to dedicated
forklift via RF through aLAN*
RETAILERS
PICKING PROCESS
4. Receive Customer Order
4.1. Receive acustomer order by EDI or Createacustomer order copy in the
ERP (i.e. fax or phone)*
4.2. Consolidate customer orders ERP*
4.3. Plan manually theweekly delivering waveof picking into WMS*
4.4. Plan manually thedaily delivering waveof picking into WMS*
4.5. Plan manually theshipping batch into WMS*
4.6. Verify manually the inventory into WMS*
4.7. Send picking order into WMS*
5. Pick Physical Resource
5.1. Receive theinformation about thenumber of racks to visit and dedicated
circuit into WMS via RF through aLAN*
5.2. Confirmthenumber of racks to visit and dedicated circuit into WMS*
5.3. Move forklift towards various racks to pick pallet
5.4. Scan the rack licence plate*
5.5. Confirmtherack position into the WMS*
5.6. Scan the storagelicence plate*
5.7. Confirmthestorage position into theWMS*
5.8. Pick thepallet
5.9. Scan the pallet*
5.10. Confirmthe rack number wherepallet is picked into WMS viaRF through
aLAN*
5.11. Moveforklift to thededicated staging area
5.12. Drop pallet at thestaging area
5.13. Moveto thenext rack
5.14. Repeat step 5.4. to 5.11. until theend of pallet on thepickinglist
5.15. Confirmend of picking into WMS viaRF through aLAN*
*: Information-related activities.
ERP: Enterprise ResourcePlanning, WMS: WarehouseManagement System, RF:
Radio Frequency , LAN: Local Area Network, TMS: Transport Management System,
GPS: Global Positioning System.
SUPPLIERS
R
e
c
e
i
v
i
n
g
P
u
t
-
a
w
a
y
P
i
c
k
i
n
g
S
h
i
p
p
i
n
g
R
e
c
e
i
v
i
n
g
P
u
t
-
a
w
a
y
P
i
c
k
i
n
g
S
h
i
p
p
i
n
g
SHIPPING PROCESS
6. Validate Shipping Order
6.1. Verify completed order*
6.2. Generatereport on completed order*
6.3. Reservemanuallyatrailer*
6.4. Bring thetrailer to theshipping dock
6.5. Link manually thetrailer to ashipping destination*
7. Load Physical Resource in the trailer
7.1. Moveforklift to stagingarea
7.2. Scan manuallypallet to associateto theshippingdestination*
7.3. Pick thepallet
7.4. Load thepallet into thetrailer
7.5. Repeat 7.2 to 7.4 until lot is loaded
7.6. Confirmmanuallyend of loading in theWMS*
7.7. Movethetrailer fromtheshipping dock to atemporary area
7.8. Confirmmanuallydeparturefromshipping dock in theERP*
7.9. GeneratemanuallyBOL in theERP*
7.10. Print manuallytheBOL in another location*
7.11. Put theBOL in adedicated box for thetrailer driver*
7.12. Takepossession of theBOL by thetrailer driver*
7.13. Bringthetrailer to theshipping destination
7.14. Confirmin theERP and in theTMS departurefromtemporaryareaand initiate
tracking in theGPS*
PUT-AWAY PROCESS
3. Receive put-away tasks
3.1. Receiveput-away tasks on forklift terminal viaRF*
3.2. Moveforklift to thededicated staging area
3.3. Scan pallet*
3.4. Receivethelocation of thededicated rack for thepallet*
3.5. Movepallet to thededicated rack
3.6. Put-away on thededicated rack
3.7. Scan therack*
3.8. Confirmtheput-away on thededicated rack into WMS*
3.9. Confirmend of task into ERP*
SHIPPING PROCESS (SUPPLIERS)
1. Validate Shipping Order
1.1. Bottlethe products
1.2. Put in cases
1.3. Put in pallets
1.4. Link each pallet to ashipping destination using abarecode*
1.5. Pack each pallet
1.6. Pick pallet fromthepackaging areausing a forklift
1.7. Move loaded forklift to the shipping area
1.8. Consult theproduction plan*
1.9. Load thepallets into thetrailer
1.10. Fill out theBill of Lading (BOL)*
1.11. Transfer thetrailer to theshipping destination
1.12. GivetheBOL at theshipping destination*
RECEIVING PROCESS (RETAILERS)
Similar as thoseof firmX
S
h
i
p
p
i
n
g
S
h
i
p
p
i
n
g
R
e
c
e
i
v
i
n
g
R
e
c
e
i
v
i
n
g
FIRM X
RECEIVING PROCESS
1. Receive Bill of lading
1.1. Create aBOL in the ERP*
1.2. Enter data frompaper BOL in theERP*
1.3. Verify quantity by looking up thePurchaseOrder (PO)*
1.4. Generateareport*
1.5. Initiateunloading*
2. Receive Physical Resource
2.1. Drive through portal
2.2. Placeforklift into thetruck
2.3. Pick pallet fromthetruck
2.4. Backup forklift into warehouse
2.5. Scan pallet*
2.6. Confirmvisually the quantity in thepallet*
2.7. Scan license-plateto give it life*
2.8. Move loaded forklift to the dedicated staging area
2.9. Drop pallet into staging area
2.10. Generatemanually aqueueof movement in theWMS*
2.11. Dispatch task manually in theWMS*
2.12. Transmit put-away task manually fromthe WMS to dedicated
forklift via RF through aLAN*
RETAILERS
PICKING PROCESS
4. Receive Customer Order
4.1. Receive acustomer order by EDI or Createacustomer order copy in the
ERP (i.e. fax or phone)*
4.2. Consolidate customer orders ERP*
4.3. Plan manually theweekly delivering waveof picking into WMS*
4.4. Plan manually thedaily delivering waveof picking into WMS*
4.5. Plan manually theshipping batch into WMS*
4.6. Verify manually the inventory into WMS*
4.7. Send picking order into WMS*
5. Pick Physical Resource
5.1. Receive theinformation about thenumber of racks to visit and dedicated
circuit into WMS via RF through aLAN*
5.2. Confirmthenumber of racks to visit and dedicated circuit into WMS*
5.3. Move forklift towards various racks to pick pallet
5.4. Scan the rack licence plate*
5.5. Confirmtherack position into the WMS*
5.6. Scan the storagelicence plate*
5.7. Confirmthestorage position into theWMS*
5.8. Pick thepallet
5.9. Scan the pallet*
5.10. Confirmthe rack number wherepallet is picked into WMS viaRF through
aLAN*
5.11. Moveforklift to thededicated staging area
5.12. Drop pallet at thestaging area
5.13. Moveto thenext rack
5.14. Repeat step 5.4. to 5.11. until theend of pallet on thepickinglist
5.15. Confirmend of picking into WMS viaRF through aLAN*
*: Information-related activities.
ERP: Enterprise ResourcePlanning, WMS: WarehouseManagement System, RF:
Radio Frequency , LAN: Local Area Network, TMS: Transport Management System,
GPS: Global Positioning System.
Figure 3: Actual inter - and intra organizational business processes
100
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
6.2 Actual Inter- and Intra-Organizational Information Flow
Figure 4 presents actual inter- and intra-organizational activities related to the information flow within the supply
chain. Analysis of these activities leads to the following observation: almost all information-flow-related activities
required a human intervention. For example, in the “shipping” process at the supplier facilities, an employee needs to
manually fill out the Bill of Lading (BOL). Also, in the “receiving” and “shipping” processes at the focal firm’s DC,
there are numerous human interventions such as data entry from the BOL in the ERP during receiving and manually
verifying the completed order during shipping. Finally, the “receiving” process at the retailer’s facilities also requires a
lot of human interventions (e.g. manually verifying quantity received).
Despite the fact that supply chain members used bar codes to track and trace products, numerous problems related
to the use of that technology were noticed during the on-site observations. For example, during the “picking” process
for a mixed pallet at the focal firm’s DC, the employee must scan each box in the pallet.
However, he usually just scans one box and multiplies his observations by the number of similar boxes, which
creates the potential for errors when the cases do not contain the same type of product. Moreover, although there is
a dedicated employee to verify and confirm all quantities shipped from Firm X’s DC to the retailer during the
“shipping” process, there are often complaints from the retailer due to incomplete quantities at its receiving dock.
Resolving inventory discrepancies is becoming a top priority for Firm X’s management team.
Figure 4: Actual inter - and intra-organizational information flow
6.3 Inter- and Intra-Organizational Information Flow Integrating RFID and the EPC
Network
Prior to the simulation of the retained scenario integrating RFID and the EPC network, some technological
assumptions were made.
6.3.1 At the supplier facilities
The product tagging (box and pallet levels) is conducted in each supplier’s facilities. Tagging is done by an
automated RFID printer applicator which encodes, prints the tags and then attaches them to boxes as they pass
through the conveyor. A tag is applied at the pallet level. The shipping dock is equipped with an RFID door portal
equipped with four antennas, and linked to middleware that communicates with the supplier’s EPC-IS and the local
ONS. All data collected by the RFID door portal are communicated in real time to the supplier’s ERP via its EPC-IS.
101
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
6.3.2 At Firm X’s DC
At Firm X’s DC, the receiving and shipping docks are equipped with an RFID door portal with four antennas, and
linked to middleware with direct communication to Firm X’s EPC-IS and the local ONS. As soon as products pass
through the receiving or shipping docks, data are collected by the dedicated RFID door portal and sent in real time to
Firm X’s ERP and WMS via its EPC-IS.
6.3.3 At the retailer’s facilities
At the retailer facilities, the RFID infrastructure is similar to that at Firm X’s DC.
Based on those technological assumptions, two dry runs and the final PoC were conducted in a laboratory setting.
For the retained scenario, the potential impacts of RFID technology and the EPC network on information flow were
investigated at the process level (middle of Figure 3) and at the activity level, at the focus on the activities of the
“receiving process” (bottom of Figure 5).
In the scenario, as soon as pallets of products pass the supplier shipping dock with its RFID door portal, RFID tags
(pallet and box levels) are automatically read and all data collected are automatically transmitted to the middleware,
which triggers the validation of the shipping order. When the order matches the PO in the ERP, the supplier’s
inventory is automatically decreased in the supplier’s WMS, actual quantities in the shipping order are confirmed to
the shipping employee and an electronic ASN (e-ASN) is automatically sent to Firm X. All information contained in
the e-ASN (quantities, date and time of shipment, etc.) is now available and can be shared (depending on access
authorizations) with the whole supply chain via the remote ONS. This increases visibility among all supply chain
members, making it possible to adjust their inventories and have the right product in the right place at the right time.
In case of mismatch, an error message is sent to an employee in order to fix the problem and avoid false shipment of
products.
During the “receiving process” at Firm X’s DC, products are automatically detected and read by the RFID door portal;
the data collected are transmitted to Firm X’s ERP via the middleware. All information related to the products is
validated using the e-ASN, which was downloaded in advance from the remote ONS of the EPC network to Firm X’s
local ONS and then to its ERP and WMS. During this process, quantities are validated and updated without any
human intervention. Also, it was possible during the PoC to (i) automatically send a “confirmation of delivery” to the
supplier in which the received quantities are indicated, and (ii) in parallel, automatically authorize the payment of
those products, thereby enhancing the “cash-to-cash” flow.
All benefits generated by RFID and the EPC network at the supplier’s shipping dock and Firm X’s receiving dock
were also simulated at Firm X’s shipping dock and the retailer’s receiving dock.
All information-flow-related activities (e.g. validate shipping order and fill out the BOL in the supplier’s “shipping
process”; verify quantity by looking up the purchase order and enter data from the BOL in the ERP in Firm X’s
“receiving process”; verify completed order and scan pallet to associate with the shipping destination in Firm X’s
“shipping process”; and verify quantity received in the retailer’s “receiving process”) are now automatically performed
using RFID readers, avoiding the possibility of human errors. Therefore, the quality and integrity of information in the
supply chain are improved.
In the second step of the analysis, the impact of RFID technology and the EPC network was investigated, with a
focus on the activities of the “receiving process” (bottom of Figure 3). The results in that part of Figure 3 indicate that
RFID technology and the EPC network could reduce the total time required to perform information-related activities
in the “receiving process” from 370 s to 7 s, with total saving of almost 98.11%. Almost all information-related
activities in that process would be automated. The human resources involved in that process are also impacted.
Information-related activities in Firm X’s “receiving process” are now followed up by two employees: (i) one employee
who spends half of his time receiving bills of lading (e.g. create a bill of lading in the ERP, enter data from paper BOL
in the ERP, verify quantity, etc.), and (ii) another employee with half of his time reserved for the receiving of physical
resources related to the “receiving process.” Using RFID technology and the EPC network, the total cost related to
this information tracking drops from $55,000 per year to $0 per year.
7 Implications and Conclusion
This paper assesses the impacts of RFID technology and the EPC network on information flow within one retail
supply chain. Our study shows that RFID technology and the EPC network could effectively enhance information
flow within a supply chain by automating almost all information-based activities, synchronizing information and
product flows and allowing end-to-end information visibility in the supply chain, and thus reducing potential human
errors, document handling and processing costs. However, all these benefits can only be realized if supply chain
members’ strategy concerning the adoption of RFID technology and the EPC network is integrated into a broader
strategy that involves moving from a “focal firm focus” or “closed-loop” optimization toward “network collaboration” or
102
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
“open-loop” optimization. Information sharing among supply chain members is therefore the most critical issue. It
raises many questions, such as who owns the RFID tag? Who owns the information? Who can update the data? To
what extent will one firm allow another supply chain member to check strategic information such as the level of
inventories for a specific product? How should real-time data be used for decision making? Which information to
collect at the focal firm and at the supply chain level? And finally, how to configure business rules in the middleware
to convert this raw data into “business intelligence”.
RECEIVING PROCESS
1. Receive Bill of Lading (BOL)
Without RFID-
EPC netowrk
With RFID-
EPC network
Without RFID-
EPC netowrk
With RFID-EPC
network
1.1. Createa BOL in theERP
1.2. Enter data frompaper BOL in theERP
1.3. Verify quantity by looking up thePurchaseOrder (PO)
1.4. Generatea report
1.5. Initiateunloading
2. Receive Physical Resource
2.5. Scan pallet 3
2.6. Visually confirmthequantity in thepallet 1
2.7. Scan license-plateto giveit life 3
2.10. Manually generate a queue of movement in the Warehouse
Management System(WMS)
2.11. Dispatch task in theWMS
2.12. Transmit put-awaytask fromtheWMStodedicatedforklift via
Radio Frequency (RF) through a Local AreaNetwork (LAN)
Total 370 7 1 0
% saving 98.11 100.00
Estimated ($) amount N/A N/A
$55K per year $0K per year
A
c
t
i
v
i
t
i
e
s
l
e
v
e
l
HUMAN RESOURCE
1/2 0
0 1/2
I
n
f
o
r
m
a
t
i
o
n
-
r
e
l
a
t
e
d
a
c
t
i
v
i
t
i
e
s
TIME (in s)
5
1
1
360
3
(A): Automated; (C): Cancelled
Figure 5: Inter- and intra-organizational information flow integrating RFID and the EPC network
103
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
The empirical evidence provided in this paper points to the overriding importance of inter-organizational issues either
at the technical level (i.e. interoperability between the legacy systems of the different supply chain members) or at
the strategic level (i.e. the decision rules to be configured in different middleware applications). The proof-of-concept
approach allowed the participants in this research initiative to identify these issues, discuss them and offer different
solutions. It seemed particularly appropriate to examine the dynamic among supply chain members and to gain a
better understanding of the technical and non-technical issues related to the adoption of inter-organizational
technologies such as RFID technology and the EPC network. Further research needs to be conducted in a real-life
setting in order to validate the results from the university-based research laboratory. For example, a longitudinal
approach in which the firms under study are revisited after their adoption of RFID technology and the EPC network
would be helpful to compare the predicted results with the actual results.
The supply chain under study is only integrated at three layers, which is not necessarily the case in some more
extended supply chains. Consequently, similar studies need to be conducted in larger and more complex supply
chains before the results can be used to make policy suggestions.
Acknowledgments
This research has been made possible through the financial contribution of SSHRC, NSERC and FQRSC.
References
[1] F. H. Abernathy, J. T. Dunlop, J. H. Hammond and D. Weil, Retailing and supply chains in the information age,
Technology in Society, vol. 22, pp. 5–31, 2000.
[2] Aris Toolset. (2006, October) Process design with aris: Easy, smart & powerful. [Online]. Available:
http://www.ids-scheer.com/sixcms/media.php/2188/ARIS_Design_Platform_WP_en_10-2006.pdf.
[3] A. Asif and M. Mandviwalla, Integrating the supply chain with RFID: A technical and business analysis,
Communications of the Association for Information Systems, vol. 15, pp. 393-427, 2005.
[4] I. Benbasat, D. K. Goldstein and M. Mead, The case research strategy in studies of information systems, MIS
Quarterly, vol. 11, No. 3, pp. 369-386, 1987.
[5] H. Bradley, A structure for supply-chain information flows and its application to the alaskan crude oil supply
chain, Logistics Information Management, vol. 15, no. 1, pp. 8-23, 2002.
[6] G. P. Cachon and M. Fisher, Supply chain inventory management and the value of shared information,
Management Science, vol. 46, no. 8, pp. 1032-1048, 2000.
[7] B. Chae, H. R. Yen and C. Sheu, Information technology and supply chain collaboration: Moderating effects of
existing relationships between partners, IEEE Transactions on Engineering Management, vol. 52, no. 4, pp.
440-448, 2005.
[8] J. Collins. (2004, July) Metro launches RFID test center. RFIDJournal. [Online]. Available: http://www.rfid
journal.com/.
[9] J. Collins. (2005, December) Metro is back on track. RFIDJournal. [Online]. Available: http://www.rfidjour
nal.com/.
[10] J. Collins. (2006, September-October) Metro is back on track. RFIDJournal. [Online]. Available: http://www.rf
idjournal.com/.
[11] J. Curtin, R. J. Kauffman and F. J. Riggins, Making the most out of RFID technology: A research agenda for the
study of the adoption, usage and impact of RFID, Information Technology and Management, vol. 8, no. 2, pp.
87-110, 2007.
[12] E. Daniel, H. Wilson, and A. Myers, Adoption of e-commerce by SMEs in the UK, towards a stage model,
International Small Business Journal, vol. 20, no. 3, pp. 253-270, 2002.
[13] B. Dehning, V. J. Richardson and R. W. Zmud, The financial performance effects of IT-based supply chain
management systems in manufacturing firms, Journal of Operations Management, In Press, 2007.
[14] J. Dejonckheere, S. M. Disney, M. R. Lambrecht and D. R. Towill, The impact of information enrichment on the
bullwhip effect in supply chains: A control engineering perspective: Euro young scientists, European Journal of
Operational Research, vol. 153, no. 3, pp. 727-750, 2004.
[15] M. Dell'Orco and R. Giordano, Web community of agents for the integrated logistics of industrial districts,
Proceedings of the 36th Hawaii International Conference on System Sciences, Hawaii, January, 2003.
[16] K. M. Eisenhardt, Building theories from case study research, Academy of Management Review, vol. 14, no. 4,
pp. 532-550, 1989.
[17] EPCglobal. (2004, November) The EPCglobal network. [Online]. Available: http://www.epcglobalinc.org/.
[18] E. Fleisch, and C. Tellkamp, Inventory inaccuracy and supply chain performance: A simulation study of a retail
supply chain, International Journal of Production Economics, vol. 95, no. 3, pp. 373-385, 2005.
[19] D. Folinas, M. Vlachopoulou, V. Manthou and M. Sigala. Modeling the e-volution of supply chain: Cases and
best practices. Internet Research: Electronic Networking Applications and Policy, vol. 14, no. 4, pp. 274-283,
2004.
[20] M. Geuens, M. Brengman, and R. S'Jegers, Food retailing, now and in the future: A consumer perspective,
Journal of Retailing and Consumer Services, vol. 10, no. 4, pp. 241-251, 2003.
104
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
[21] M. Giovanni, Layers and mechanisms: A new taxonomy for the bullwhip effect, International Journal of
Production Economics, vol. 104, no. 2, pp. 365-381, 2006.
[22] GS1 Australia. (2006, July) EPC network Australian demonstrator project report. [Online]. Available: http://ww
w.gs1au.org/assets/documents/news_room/pr/epc_demo_270706.pdf.
[23] M. Gupta and A. Kohli, Enterprise resource planning systems and its Implications for operations function,
Technovation, vol. 26, no. 5-6, pp. 687-696, 2006.
[24] N. Huber and K. Michael, Minimizing product shrinkage across the supply chain using radio frequency
identification: A case study on a major australian retailer, The Sixth International Conference on Mobile
Business (ICMB 2007), Toronto, July, 2007.
[25] P. Jones, C. Clarke-Hill, D. Hillier and D. Comfort, The benefits, challenges and impacts of radio frequency
identification technology (RFID) for retailers in the UK, Marketing Intelligence & Planning, vol. 23, no. 4, pp. 395-
402, 2005.
[26] A. Kambil, and J. D. Brooks. (2002, September) Auto-ID across the value chain: From dramatic potential to
greater efficiency & profit. Auto-ID, Cambridge. [Online]. Available: http://www.autoidlabs.org/.
[27] M. Kärkkäinen, Increasing efficiency in the supply chain for short shelf life goods using RFID tagging,
International Journal of Retail & Distribution Management, vol. 31, no. 10, pp. 529-536, 2003.
[28] J. S. K. Lau, G. Q. Huang and K. L. Mak, Impact of information sharing on inventory replenishment in divergent
supply chains, International Journal of Production Research, vol. 42, no. 5, pp. 919-941, 2004.
[29] H. L. Lee, K. C. So and C.S. Tang, The value of information sharing in a two-level supply chain, Management
Science, vol. 46, no. 5, pp. 626-643, 2000.
[30] I. Lee, Evaluating business process-integrated information technology investment, Business Process
Management Journal, vol. 10, no. 2, pp. 214-233, 2004.
[31] H. M. Leknes and C. Carr, Globalisation, international configurations and strategic implications: The case of
retailing, Long Range Planning, vol. 37, no. 1, pp. 29-49, 2004.
[32] K. S. Leong, M. L. NG, and D. W. Eengels, EPC network architecture. (2005, October) AUTOIDLABS. [Online].
Available: http://www.autoidlabs.org/uploads/.
[33] S. Li and B. Lin, Accessing information sharing and information quality in supply chain management, Decision
Support Systems, vol. 42, no. 3, pp. 1641-1656, 2006.
[34] F. R. Lin and M. Shaw, Reengineering the order fulfillment process in supply chain networks, International
Journal of Flexible Manufacturing Systems, vol. 10, no. 3, pp. 197-229, 1998.
[35] F. R. Lin, S. Huang and S. Lin, Effects of information sharing on supply chain performance in electronic
commerce, IEEE Transactions On Engineering Management, vol. 49, no. 3, pp. 258-268, 2002.
[36] H. Loeh, G. Sung and B. Katzy, The CeTIM virtual enterprise lab – a living, distributed, collaboration Lab, 11th
International Conference on Concurrent Enterprising (ICE’05) University BW, Munich, June, 2005.
[37] R. Mason-Jones and D. R. Towill, Total cycle time compression and the agile supply chain, International Journal
of Production Economics, vol. 62, no. 1-2, pp. 61-73, 1999.
[38] L. Miao and J. Chen, Information sharing with scarce goods in cournot retailers, International Conference on
Services Systems and Services Management, Proceedings of ICSSSM '05, Chonqing, June, 2005.
[39] D. Näslund, Logistics needs qualitative research - especially action research, International Journal of Physical
Distribution & Logistics Management, vol. 32, no. 5, pp. 321-338, 2002.
[40] S. O’Neill. (2002, November) Integrated market management: Seamless information exchange and collaboration
for CPGs and retailers. IBM Institute for Business Value. [Online]. Available: http://www-8.ibm.com/services/pdf/.
[41] N. Patnayakuni and A. Rai. (2002, June) Towards a theoretical framework of digital supply chain integration,
European Conference on Information Systems (ECIS), Gda?sk, June, 2002. [Online]. Available: http://is2.lse.a
c.uk/asp/aspecis/20020127.pdf.
[42] Paxar Central Europe GmbH. (2005, November) Paxar’s perfect performance in Metro’s SCM. [Online].
Available: http://www.paxar-emea.com.
[43] C. Poirier and D. McCollum, RFID strategic implementation and ROI: A practical roadmap to success, J. ROSS
Publishing: 2006.
[44] D. C. Ranasinghe, K. S. Leong, M. L. Ng, D. W. Engels and P. H. Cole. (2004, August) A distributed architecture
for a ubiquitous item identification network. [Online]. Available: http://ubicomp.lancs.ac.uk/workshops/sobs
05/papers/15%20-%20Ranasinghe,%20Damith.pdf.
[45] F. Sahin and E. P. Robinson, Flow coordination and information sharing in supply chains: Review, implications,
and directions for future research, Decision Sciences, vol. 33, no. 4, pp. 505-536, 2002.
[46] S. Sarma. (2006, January.) R&D opportunities and the future of RFID research. [Online]. Available: http://autoi
d.mit.edu/CS/forums/thread/151.aspx.
[47] S. Sarma, RFID: Integrating RFID, Queue, vol. 2, no. 7, pp. 50-57, 2004.
[48] A. Seidmann and A. Sundarajan. (1997, January) Sharing logistics information across organizations:
Technology, competition and contracting, Working Papers from Rochester, Business - Operations Management.
[Online]. Available: http://oz.stern.nyu.edu/papers/slog.html.
[49] D. Seifert, Collaborative planning, forecasting and replenishment. How to create a supply-chain advantage.
AMACOM, New-York: 2003.
[50] D. H. Shih, P.-L. Sun and B. Lin, Securing industry-wide EPCglobal network with ws-security, Industrial
Management & Data Systems, vol. 105, no. 7, pp. 972-996, 2005.
[51] A. D. Smith, Exploring radio frequency identification technology and its impact on business systems, Information
Management & Computer Security, vol. 13, no. 1, pp. 16-28, 2005.
105
Samuel Fosso Wamba
Harold Boeck
Enhancing Information Flow in a Retail Supply Chain Using
RFID and the EPC Network: A Proof-of-Concept Approach
Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version
VOL 3 / ISSUE 1 / APRIL 2008 / 92-105
© 2008 Universidad de Talca - Chile
This paper is available online at
www.jtaer.com
[52] L. Sparks and B. A. Wagner, Retail exchanges: A research agenda, Supply Chain Management, vol. 8, no. 1, pp.
17-25, 2003.
[53] B. Srivastava, Radio frequency ID technology: The next revolution in SCM, Business Horizons, vol. 47, no. 6, pp.
60-68, 2004.
[54] I. Stuart, D. McCutcheon, R. Handfield, R. McLachlin and D. Samson, Effective case research in operations
management: A process perspective, Journal of Operations Management, vol. 20, no. 5, pp. 419-433, 2002.
[55] A. Thorne, D. McFarlane, S. Hodges, S. Smith, M. Harrison, J. Brusey and A. Garcia. (2003, June) The Auto-ID
automation laboratory: Building tomorrow's systems today. AUTOIDLABS. [Online]. Available: http://www.auto
idlabs.org/uploads/.
[56] UsingRFID. (2005, December) Study of Wal-Mart reveals first benefits of RFID. [Online]. Available:
http://www.usingrfid.com/.
[57] UsingRFID. (2004, April) RFID in European retail becoming first priority. [Online]. Available: http://www.us
ingrfid.com/news/read.asp?lc=b6324mx151zo.
[58] C. Voss, N. Tsikriktsis and M. Frohlich, Case research in operations management, International Journal of
Operations & Production Management, vol. 22, no. 2, pp. 195-219, 2002.
[59] H. H. Warren. (2005, October) RFID: Challenges and opportunities in supply chain management in the Meir
Rosenblatt Memorial Series. [Online]. Available: http://bctim.wustl.edu/topics/topics.cfm?categories_id=33&se
archid=127.
[60] A. Wattky and G. Neubert, Integrated supply chain network through process approach and collaboration,
Industrial Informatics. INDIN '04. 2004 2nd IEEE International Conference on Industrial Informatics, Berlin, June,
2004, pp. 58-63.
[61] D. C. Wyld, RFID 101: The next big thing for management, Management Research News, vol. 29, no. 4, pp.
154-173, 2006.
[62] R. Yin, Case study research: Design and methods, Newbury Park, CA: Sage: 1994.
[63] C. Zhang, G. W. Tan, D. J. Robb and X. Zheng, Sharing shipment quantity information in the supply chain,
Omega, vol. 34, no. 5, pp. 427-438, 2006.
doc_822976252.pdf