Radio frequency identification implementation in the supermarket industry
Résumé de l'exposé
This paper discusses the implementation of Radio Frequency Identification (RFID) in the supermarket industry. RFID is based on the transmission of radio frequency waves by RFID tags to RFID readers. The RFID tags are attached to products or pallets and can be embedded with a wide variety of information ranging from product characteristics to supplier details. There are two kinds of tags: active and passive. Active tags can send out radio frequency waves by themselves whereas passive tags need an incoming signal, sent by a reader, to generate an outgoing wave. This radio frequency wave contains the information that is embedded in the tag. A reader then picks up the wave and the information is sent to the company's information system. The Electronic Product Code (EPC) is the technology standard. The key question of this paper is whether the RFID implementation is able to create or maintain a competitive advantage.
...
Sommaire de l'exposé
The impact of RFID on the Value Chain
The impact of RFID on the supermarket industry
The costs of RFID implementation
Extraits de l'exposé
[...] ?RFID and Corporate Responsibility: Hidden Costs in RFID implementation? by Barut M., Brown R., Freund N., May J. and Reinhart; p information gives you competitive advantage? by Porter M. and Millar V., Exhibit V s Figure Determinants of industry attractiveness Threat of new entrants Bargaining power of suppliers Rivalry amongst existing competitors Bargaining power of buyers Threat of substitute, product or services Source: information gives you competitive advantage? by Porter M. and Millar V.; Exhibit V1 The bargaining power of suppliers is bound to increase after RFID implementation. [...]
[...] Finally, the costs of RFID implementation are dealt with The impact of RFID on the Value Chain In this section, Porter's value chain model1 is applied to the supermarket industry. Table 1 shows that RFID does not change the core business of the industry, namely retailing, but it improves the overall efficiency of the business in almost every aspect of the value chain. Below, the impact of RFID on the primary and secondary activities of the supermarket industry is being analysed ?RFID and Corporate Responsibility: Hidden Costs in RFID implementation? by Barut M., Brown R., Freund N., May J. [...]
[...] and Arif M.; ?Lack of information from early RFID pilots may hold back development and adoption?; Computer weekly; 2/1/2005 Field A.; ?Eyes on the prize?; Journal of commerce; Vol Issue 8 Field old and Journal of commerce; Vol Issue 8 Fish A. and Forrest W.; 7 success factors of Supply Chain Management Review; Sep 2006, Vol 10, Issue 6 Gatty B.; To A Good Start With The Foods logistics; April 2005, Issue 79 Porter M. and Millar V.; information gives you competitive advantage?; Harvard Business Review; July-August ?RFID and Corporate Responsibility: Hidden Costs in RFID implementation? by Barut M., Brown R., Freund N., May J. [...]
[...] Finally, RFID may have a negative impact on brand equity due to a negative attitude towards the RFID technology. Customers may consider doing their shopping elsewhere (see infra: ?Piggly Wiggly Automates Receiving, Preparing for RFID? by Albright B. ?RFID and Corporate Responsibility: Hidden Costs in RFID implementation? by Barut M., Brown R., Freund N., May J. and Reinhart p ?RFID and Corporate Responsibility: Hidden Costs in RFID implementation? by Barut M., Brown R., Freund N., May J. and Reinhart p ?RFID and Corporate Responsibility: Hidden Costs in RFID implementation? by Barut M., Brown R., Freund N., May J. [...]
[...] The usage costs of RFID are very high at the moment: the unit cost of an RFID tag lies between $0,25 and $0,3013 and the tags cannot be recycled14. This is a major barrier to the adoption of RFID. Many firms are playing a ?wait and strategy, as mentioned in section hoping that the price will diminish. The RFID and information system (e.g. databases) will need continual maintenance in order to keep running. The systems will also have to be adaptable to hardware and software updates, which results in increased costs. Additionally, costs of future updates can be expected. [...]
Marketing & marques