16-06-06 09:18
Age: 4 yrs

BY: TELLKAMP, CHRISTIAN

A number of retailers in the fast-moving consumer goods (FMCG) industry have begun to roll out radio frequency identification (RFID) technology. Despite these commitments, the business case for RFID in the FMCG industry is still unproven. This thesis aims at providing a realistic perspective on the potentials of RFID that takes existing processes and practices into account. So far, research in this area is limited. The thesis deals with the question of how RFID technology can improve supply chain performance in the FMCG industry. To answer this question, the thesis first looks in general at the way that Auto-ID technologies such as RFID can improve process performance. A conceptual framework is proposed that distinguishes between three effects (automational, informational, and transformational) of Auto-ID technologies. The framework is used to analyze different benefits of RFID that compa¬nies in the FMCG industry intend to realize. The examples are taken from field research conducted with a number of retailers and manufacturers. They provide insights into the complementary and contextual factors that influence the value of RFID. The results from the field research indicate that companies currently focus on the automational and the informational effects of RFID, and that some companies use RFID as a catalyst for change. Examples of transformational effects, i.e. process innovations based on RFID, are still rare. This seems to partly result from dif¬ficulties among companies in evaluating the informational and transformational effects that arise from high-quality RFID data. The thesis develops two exemplary analytical models that deal with the potential impact of RFID data on product availability, one of the most frequently mentioned benefits of RFID, via higher inventory accuracy and a redesign of the replenishment-from-the-backroom process. Overall, the results of the research suggest that RFID technology – at least initially – may allow the most efficient players in the FMCG supply chain to extend their lead. It is still too early to determine whether new ways of doing business, enabled by RFID, may ultimately challenge current industry leaders.

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