ATHENS UNIVERSITY OF ECONOMICS & BUSINESS DEPARTMENT OF MANAGEMENT SCIENCE & TECHNOLOGY The E-Business Research Center
Dr. Angeliki Karagiannaki, Dr. Katerina Pramatari ΕLTRUN Research Center Dept. of Management Science and Technology ATHENS UNIVERSITY OF ECONOMICS AND BUSINESS
The Met Hotel, Thessaloniki, 10-11/11/2011
RFID Technology in the Supply Chain • Radio Frequency Identification (RFID) Key characteristics RFID reader
– Automatically and massively identify objects without line of sight – Unique product identification RFID tags
chip
antenna
Research Motivation
Since the technical problems associated with implementing RFID have mostly been resolved, the managerial issues emerge as critical (Angeles, 2005). To make robust investment decisions we need a much more credible assessment of the true value of RFID‌based on the operating characteristics of the underlying supply chain processes (Lee and Özer, 2007).
What is the impact of RFID on supply chain process performance? 3
Methodology Overview MOTIVATION- PROBLEM DEFINITION Approach: Literature Review
EXPLORATORY Phase Approach: Case Study HYPOTHESES GENERATING
Form Research Objective
CONFIRMATORY Phase Approach: Experimental Simulation HYPOTHESES TESTING
3PL warehouse Manufacturing Facility Retail Distribution Center
RFID-enabled process redesign: a reference framework
Refined Research Questions
Simulation model on process-driven value of RFID
RFID Assessment between the as-is vs. to-be processes Factors affecting the impact of RFID
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Three Case Studies
Product Type / Product IDs
Receiving
Storage
CASE 2: Manufacturing Facility (01/2007- 07/2008) -Frozen food -Many productIDs
Order Picking
CASE 1: 3PL Warehouse (03/2006- 01/2007) -Paper trading -One productID
CASE 3: Retail Distribution Center (07/2009- 10/2010) -Fast moving consumer goods -Many productIDs
Shipping
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RFID-enabled Receiving Process
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RFID-enabled Storage Process
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RFID-enabled Picking Process
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RFID-enabled Shipping Process
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Important Outcome: Numerous Alternative RFID implementations RFID IMPLEMENTATION 1 Receiving
New Process RFID tagging)
Storage …not supported by the RFID…
…is not supported by RFID…
Picking
Shipping
…not supported by the RFID…
RFID IMPLEMENTATION 2 Receiving
Storage
By the large suppliers
Receiving …not supported by the RFID…
New Process: RFID tagging
Picking
Shipping
Factors affecting RFID-enabled process redesign • Tagging Level – This factor represents what objects are being passed through the redesigned processes – Literature that supports this assertion: Karkkainen, 2003; Hardgrave and Miller, 2006; Loebbecke, 2007; Tajima, 2007; Lee, 2007; Boeck and Wamba, 2008; Roh et al., 2009; Becker et al., 2009
• Tagging Responsibility – One echelon of the supply chain should take the responsibility of introducing the new process of RFID tagging – Literature that supports this assertion: Kim and Sohn, 2009; Boeck and Wamba 2008
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Experimental Design Tagging Responsibility
In-house
By all the suppliers
By the large suppliers
By the large suppliers & In-house
Pallets
Experiment 1
Experiment 3
Experiment 5
Experiment 7
Cases
Experiment 2
Experiment 4
Experiment 6
Experiment 8
Tagging Level
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Methodology Overview MOTIVATION- PROBLEM DEFINITION Approach: Literature Review
EXPLORATORY Phase Approach: Case Study HYPOTHESES GENERATING
Form Research Objective
CONFIRMATORY Phase Approach: Experimental Simulation HYPOTHESES TESTING
3PL warehouse Manufacturing Facility Retail Distribution Center
RFID-enabled process redesign: a reference framework
Refined Research Questions
Simulation model on process-driven value of RFID
RFID Assessment between the as-is vs. to-be processes Factors affecting the impact of RFID
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A generic warehouse simulation model • Video (SIMUL8 software)
Pairwise Multiple Comparisons-Interaction Effects Labor Utilization
80,00 70,00 60,00 50,00
As-is EXPERIMENT 1 EXPERIMENT 5 EXPERIMENT 7 EXPERIMENT 3
40,00
as-is EXPERIMENT 2 EXPERIMENT 6 EXPERIMENT 8
30,00 EXPERIMENT 4
20,00
tagging inhouse tagging by all the suppliers tagging by the large suppliers tagging inhouse & by the large suppliers
10,00 0,00 pallets
cases
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RFID effects on individual processes ‘Local’ changes due to RFID 90,00 90,00 80,00 80,00 70,00 70,00
AS-IS (WITHOUT RFID)
60,00 60,00 TAGGING IN-HOUSE
50,00 50,00
AS-IS (WITHOUT RFID) TAGGING BY ALL THE PALLET-LEVEL SUPPLIERS CASE-LEVEL TAGGING BY THE LARGE SUPPLIERS
40,00 40,00 30,00 30,00 20,00 20,00
TAGGING IN-HOUSE AND BY THE LARGE SUPPLIERS
10,00 10,00 0,00 0,00 RECEIVING RECEIVINGSTORAGE STORAGE PICKING PICKINGSHIPPING SHIPPINGALL 4ALL 4 PROCESSES PROCESSES
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Further Research: Energy Efficiency and Carbon Footprint Monitoring in the Supply Chain
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Thank you for your attention! akaragianaki@aueb.gr www.eltrun.gr
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