A hierarchical model of the impact of RFID practices on retail supply chain performance

Vlachos, Ilias (2014) A hierarchical model of the impact of RFID practices on retail supply chain performance. Expert Systems with Applications, 41 (1). pp. 5-15. ISSN 0957-4174

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Official URL: http://dx.doi.org/10.1016/j.eswa.2013.07.006

Abstract

The primary purpose of this study was to evaluate the impact of radio frequency identification (RFID) practices on supply chain performance. We examined eight variables of RFID applications grouped in two categories: location (supplier’s warehouse, retailer’s central warehouse, retailer’s local warehouse, retailer’s owned stores) and utilisation (standards, transportation, pallet level, specialised software). Given the inherent difficulty in assessing supply chain performance and the widespread use of different performance models, such as the SCOR and balanced scorecard, we developed a list of performance indicators. Factor analysis produced 7 supply chain performance factors: supplier, inventory, distribution, ordering, plan, sales, and forecasting.

Empirical data were collected via an online survey administered to 300 retail companies. 130 usable questionnaires were returned, for a 43.3% response rate. To the best of our knowledge, this is the first study to provide an analytical model that places supply chain performance indicators as dependent variables in a hierarchical regression equation with RFID variables as independent variables. Results found that the implementation of RFID practices significantly affect the supply chain performance in the following areas: supplier, inventory, distribution, plan, sales, and forecasting. RFID can improve the performance of distribution systems, including products dispatched and inventory in transit by 33.8% and stock availability by 45.6%. This study contributes to both the RFID and the supply chain performance literatures. Limitations and suggestions for further research are also discussed.

Item Type: Article
Additional Information: Available online July 2013.
Uncontrolled Keywords: RFID, supply chain performance, key performance indicators, retailing, technology adoption
Subjects: N100 Business studies
N900 Others in Business and Administrative studies
Department: Faculties > Business and Law > Newcastle Business School > Business and Management
Depositing User: Ilias Vlachos
Date Deposited: 17 Sep 2013 12:22
Last Modified: 10 Aug 2015 10:55
URI: http://nrl.northumbria.ac.uk/id/eprint/13518

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