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IP-Mapping a RFID-Integrated Shelf Replenishment Information System for the Retail Industry to Assess Information Quality
Abstract
Motivated by the problem of out-of-shelf (OOS) in retail industry and the emergence of RFID (Radio Frequency Identification) technology, this paper investigates the impact that the adoption of RFID has on the quality of information utilized during the shelf replenishment process. A RFID-integrated information system (IS) with three alternative implementation scenarios is proposed to enhance the shelf replenishment process. The impact of the three alternative solutions on the quality of the IS information input and output is examined in terms of accuracy, timeliness and completeness. The quality of the IS information input and output will be assessed by developing the Information Product Maps (Ballou et al. 1998, Shankaranarayan et al. 2003) of the alternative implementations of the RFID-integrated shelf replenishment IS and utilizing the methodology introduced by the fundamental study of Ballou, Wang, Pazer and Tayi (1998). The contribution of this study is reflected on the research approach of using this methodology, not applied until now, based on the available literature.
Increasing supply chain complexity poses new challenges to managers. On the other hand, evolving information and communication technology offers ample opportunity for more reliable supply chain management practices. Event processing has established itself in many applications in logistics. Although the topic has enjoyed increasing popularity, there is no study taking stock of prior developments and guiding future research. Therefore, a systematic literature review on the topic of event processing in supply chain management from 2005 until the present is undertaken. Extant literature is synthesized and analyzed from technological and supply chain management perspectives to inform scholars and practitioners of existing field developments. Additionally, to guide future scholarly endeavors, a research agenda is derived from promising topics raised in papers and unfulfilled practical requirements. We find that current solutions primarily focus on a limited number of supply chain core processes and a restricted number of supply chain actors. The majority of publications focused on time-temperature sensitive products. Additionally, the domination of road transportation can be observed, while other modes of transport are often ignored in solution implementations. Decision support in terms of object traceability within the supply chain is found in most articles. RFID, typically accompanied by the Electronic Product Code Information Services standard, is the dominant enabling technology. Future research should focus on the topics of standardization, granularity, data sources, and cooperation. Moreover, holistic event processing supported by big data and machine learning techniques could create interfaces with other legacy business intelligence applications. Another promising area includes the exploration of new technologies, i.e. IoT, to enable new smart solutions.
“Technology has made our lives more full, yet at the same time we’ve become uncomfortably “full”. (Maeda, 2006, p.I). After considering these words within marketing context we can see that each day we are dealing with an information flow. Although there is a lot of information about almost everything (sold products, barcodes, invoices, information from the supplier, prices, customer data, competitors etc.) today’s managers are more unsecure to take certain decisions. They also don’t have enough time to pay attention for these controllable or uncontrollable forces. During a business process the way from production to wholesalers and than to retailers is very complicated. After products finally meet the customers, feedbacks are coming back to the companies and the cycle begins from the start. This product and information flow makes business processes very complex because different people (engineers, sales staff, consumers, managers) interfere this cycle. In this study our aim is - based on the simplicity theory of John Maeda – with the help of RFID technology to create a simple process model for retailers. By using RFID tags in their warehouses and stores they might be able to serve better and more efficiently to their customers and have a better overview in a short period of time. The information supplied via RFID allows corporations to plan their internal processes more efficiently. We also would like to analyze the pitfalls of RFID with a case from Turkish retail industry especially for In-Store usage of RFID.
Information quality occurs along ten dimensions, is defined by the information's customer, and is constantly changing over time. IS managers must understand the dimensions and the dynamic nature of information quality to effectively use information as a product, as a component of their production processes, and as a vehicle for managerial planning and control.
In this paper, several “disruptive” technologies are considered and the paths they have taken from the early innovation phase to full implementation are traced. The technologies include: refrigeration; the automobile and highway system; incandescent lighting; the television; and, the personal computer. Each technology is traced through several steps leading from the early innovation to wide adoption. Then the same steps are applied to RFID, placing it in this historical context and speculating on the possible future adoption and impact of this technology.
Purpose
– This paper aims to focus on the store ordering and replenishment practices which appear to be the major cause behind the problem of out‐of‐stock situations. A collaborative store replenishment practice, enabled by an internet‐based platform is examined. By enabling information and knowledge sharing between retail store managers and suppliers' salesmen, this practice leads to increased order accuracy and, as a result, to fewer out‐of‐stock situations.
Design/methodology/approach
– The research presented in this paper has been empirical in nature, involving a field experiment with a major retailer and several suppliers in Greece. Pre‐ and post‐experiment measurements were conducted and the quantitative results were statistically analyzed in order to assess the impact of collaborative store ordering on shelf availability. The quantitative measurements were repeated over several years, offering a longitudinal view on the experiment. Qualitative findings from the field experiment are also discussed.
Findings
– The empirical results from the field experiment show a reduction in out‐of‐stock situations by more than 50 percent combined with no significant statistical variation in total observed inventory levels. Qualitative findings regarding the practical aspects of the process as well as organizational issues are also acquired.
Originality/value
– Low shelf availability and the respective sales loss is one of the major issues retailers and suppliers face today. This paper examines a new replenishment process, involving supplier‐retailer collaboration supported by daily information sharing of POS data and other information over an internet platform, which leads to increased shelf availability by addressing one of its major causes. Thus, the empirical results presented in the paper have important implications for practitioners. In addition, the paper contributes from a methodological perspective to the academic community, by describing the way the field experiment was conducted and the quantitative results were analyzed as a means to evaluate a new business practice and Internet‐based collaboration platform.
Inventory inaccuracy is a main issue in businesses dealing with physical assets. The aim of this paper is to examine the relationship between inventory inaccuracy and performance in a retail supply chain. We simulate a three echelon supply chain with one product in which end-customer demand is exchanged between the echelons. In the base model, without alignment of physical inventory and information system inventory, inventory information becomes inaccurate due to low process quality, theft, and items becoming unsaleable. In a modified model, these factors that cause inventory inaccuracy are still present, but physical inventory and information system inventory are aligned at the end of each period. The results indicate that an elimination of inventory inaccuracy can reduce supply chain costs as well as the out-of-stock level. Automatic identification technology that is becoming available offers the potential to achieve inventory accuracy.
Many of the concepts and procedures of product quality control can be applied to the problem of producing better quality information outputs. From this perspective, information outputs can be viewed as information products, and many information systems can be modeled as information manufacturing systems. The use of information products is becoming increasingly prevalent both within and across organizational boundaries.
This paper presents a set of ideas, concepts, models, and procedures appropriate to information manufacturing systems that can be used to determine the quality of information products delivered, or transferred, to information customers. These systems produce information products on a regular or as-requested basis. The model systematically tracks relevant attributes of the information product such as timeliness, accuracy and cost. This is facilitated through an information manufacturing analysis matrix that relates data units and various system components. Measures of these attributes can then be used to analyze potential improvements to the information manufacturing system under consideration.
An illustrative example is given to demonstrate the various features of the information manufacturing system and show how it can be used to analyze and improve the system. Following that is an actual application, which, although not as involved as the illustrative example, does demonstrate the applicability of the model and its associated concepts and procedures.
ABSTRACT Large data volumes, widely distributed data sources, and multiple stakeholders characterize typical e - business settings Mobile and wireless technologies have further increased data volumes, further distributed the data sources, while permitting access to data anywhere, anytime Such environments empower and necessitate decision - makers to act/react quicker to all decision - tasks including mission - critical ones Decision - support in such environments demands efficient data quality management This paper presents a framework for managing data quality in such environments using the information product approach It includes a modeling technique to explicitly represent the manufacture of an information product, quality dimensions and methods to compute data quality of the product at any stage in the manufacture, and a set of capabilities to comprehensively manage data quality and implement total data quality management The paper also posits the notion of a virtual business environment to support dynamic decision - making and describes the role of the data quality framework in this environment
Radio-frequency identification (RFID) as an emerging technology has generated enormous amount of interest in the supply chain arena. With RFID technology, inventory can be tracked more accurately in real time resulting in reduced processing time and labor. More significantly, the complete visibility of accurate inventory data throughout the entire supply chain, from manufacturer's shop floor to warehouses to retail stores, brings opportunities for improvement and transformation in various processes of the supply chain. We developed a simulation model to study how RFID can improve supply chain performance by modeling the impact of RFID technology in a manufacturer-retailer supply chain environment. Our study provides a quantitative analysis to demonstrate the potential benefits of RFID in inventory reduction and service level improvement.
this article, we describe principles that can help organizations develop usable data quality metrics
this article to refer to both data and information. This avoids switching between terms as we switch between production and use of data
Supply chain management and automated identification systems are nowadays visible within virtually all industries. They are used extensively to automate many of the tasks involved in normal business processes and to enable the optimization of the now of goods through the supply chain. In order to get a better understanding and evaluation of the impact of radio frequency identification (RFID) systems in supply chains and their management systems, the authors classify the most important supply chain inventory identification and accuracy requirements. In addition, they identify and analyze the characteristics of RFID technologies that affect their ability to automatically capture the required information. They also discuss emerging standards related to the unique identification of objects. The analysis is based on several literature reviews at the technology area.
Purpose
– This paper aims to offer an outline of the characteristics of radio frequency identification (RFID) technology and briefly discusses some of its perceived benefits and challenges for food retailers in the UK.
Design/methodology/approach
– The paper draws material largely from trade and practitioner sources and illustrates general themes with specific retail examples.
Findings
– The paper suggests that RFID has the potential to offer food retailers a wide range of benefits throughout the supply chain including tighter management and control of the supply chain, reductions in shrinkage, reduced labour costs and improved customer service while also facilitating compliance with traceability protocols and food safety regulations. At the same time food retailers will need to address a number operational and strategic challenges and consumer privacy concerns before they can fully realise these benefits.
Originality/value
– This paper provides a brief and accessible outline of the RFID developments in food retailing which will interest non‐specialists working in and in association with this sector of the retail marketplace.
Animal IdentificationContactless Smart CardsISO 69873 – Data Carriers for Tools and Clamping DevicesISO 10374 – Container IdentificationVDI 4470 – Anti-theft Systems for GoodsItem Management
Radio frequency identification (RFID) is the generic name for technologies that use radio waves to automatically identify individual items that carry such identification tags. Unlike barcodes, which need line of sight sensors, RFID tags do not. As the cost of this new technology falls, the take-up rate by the retail industry will be significant, revolutionizing retailers’ control of the product supply chains and knowledge about the consumer. The paper argues that the opportunities and challenges for RFID tags for retailers are significant, and reports on a number of trials that have been conducted by retailers in the UK in the management and introduction of this technology. The paper also examines some of the issues facing retailers in terms of the widespread use of RFID tags and the privacy concerns that are linked to data capture and data usage by retailers and third parties.
Purpose – This paper aims to report on research that examined the recent scholarly literature to identify the information quality attributes associated with radio frequency identification (RFID)-based benefits across sectors of the retail supply chain. Design/methodology/approach – Reflecting the recent interest in RFID technology, the literature review was limited to scholarly articles published since the late 1990s when there appears to have been a surge in research and publishing activity. Moreover, the paper uncouples RFID-focused technology findings that are a feature of many previous publications and reports on the decision-making attributes associated with the perceived benefits of adopting the technology. Findings – Many RFID-based benefits were found to be associated with the distribution and transportation sectors of the supply chain, however, an emerging number are also apparent in the retail and post retail domains. The improved information value associated with RFID-derived benefits was embodied in quality attributes that included timeliness, currency, accuracy and completeness. The paper proposes an RFID information value chain that maps benefits and information attributes across the supply chain. The paper is also one of the first that attempts to relate RFID-derived information with aspects of organisational decision making. Research limitations/implications – This study identified information attributes associated with RFID adoption within the retail supply chain that have led to enhanced organisational responsiveness through improved decision-making capabilities. As exploratory research in a nascent and emerging area, this research should be viewed as a starting point in the examination and identification of RFID-derived benefits and information, rather than a prescriptive and/or definitive type of classification system for RFID. Practical implications – Practical examples of RFID-derived benefits distilled from the literature tend to provide important retail supply chain lessons for organisations that are currently piloting or expecting to trial RFID. The study highlights operational and strategic implications of adopting RFID technology discussing them from an information value perspective. Originality/value – The paper is one of the first that examines the information value of RFID-derived benefits across the organisational supply chain. Moreover, both benefits and information attributes are mapped to specific sectors of the retail and distribution supply chain.
http://www.emeraldinsight.com/journals.htm?articleid=1593225
Short shelf-life grocery goods present some of the biggest challenges for supply chain management due to a high number of product variants, strict traceability requirements, short shelf-life of the products, the need for temperature control in the supply chain, and the large volume of goods handled. A Radio Frequency Identification (RFID) based data capture system can help solve the problems associated with the logistics of short shelf life products. This article discusses the potential of utilising RFID technology for increasing efficiency in the supply chain of short shelf life products. The focus of this article is a RFID trial conducted at Sainsbury’s, which is discussed to study the potential benefits of RFID for short shelf-life products retailers. Further this article analyses the potential impact of RFID for other supply chain participants. We conclude that when applied with recyclable transport containers, RFID investments can provide quick amortisation of capital whilst offering a range of operational benefits.
Purpose
To provide a new generic model equipped with a “process visualizing” feature by capturing RFID logistics data to represent different logistics processes' status, and sharing them through web‐based technology to supply chain parties.
Design/methodology/approach
In order to provide logistics service companies an effective way to manage their logistics processes and help both the up and down stream supply chain parties maximize their activities linkage within the value chain, the proposed system integrates radio frequency identification (RFID) and IT applications to optimize information flow in a supply chain. In doing so, the objective of visualizing logistics process is achieved.
Findings
It is found that the proposed model enhanced the performance of third party logistics providers and their supply chain partners in three main areas. They include a significant reduction in inventory level, a substantial drop in the chance of out‐of‐stock and, a significant improvement in the efficiency of delivery. They are among the most critical problems that often exist in a supply chain.
Research limitations/implications
The proposed model requires supply chain participants to share their process data on the web environment so as to achieve the target of collaboration. This demands the need of tight security control over the public internet.
Practical implications
This paper provides useful information and practical guidance for supply chain participants to formulate a “process visualizing featured” information system.
Originality/value
This paper provides a solution to solve common supply chain management problems and offers practical helps to supply chain participants effectively.
Purpose
This paper aims to give an overview of supply chain collaboration practices and the way the underlying enabling technologies have evolved, from the classical EDI approach, to web‐based and RFID‐enabled collaboration.
Design/methodology/approach
The paper discusses alternative technological approaches and the role they play in supporting collaboration. The research presented in this paper is empirical in nature, based on three different case studies from the grocery retail sector depicting different aspects of implementing supply chain collaboration practices.
Findings
From the examination of these cases, interesting lessons are derived regarding the suitability and criticality of the technological approach used to support collaboration, especially regarding the use of a centralized web‐platform as compared to the classical EDI approach and to a decentralized solution based on web services.
Research limitations/implications
Research is limited to the specific case studies and further validation of the research findings through qualitative and quantitative methods would be appropriate.
Practical implications
The paper provides support to practitioner regarding the selection of the appropriate technological approach to support collaboration. Furthermore, it gives insight regarding the maturity of current technologies in relation to collaboration requirements and to what extent can the technology be an enabler or a barrier in a collaboration initiative.
Originality/value
The paper links the technological and the supply‐chain collaboration perspective in order to derive interesting conclusions relevant to both academics and practitioners. The cases presented are quite unique and have not been widely studied, representing interesting and novel approaches to the way that technology has been employed to support collaboration practices.
This paper presents a general model to assess the impact of data and process quality upon the outputs of multi-user information-decision systems. The data flow/data processing quality control model is designed to address several dimensions of data quality at the collection, input, processing and output stages.
Starting from a data flow diagram of the type used in structured analysis, the model yields a representation of possible errors in multiple intermediate and final outputs in terms of input and process error functions. The model generates expressions for the possible magnitudes of errors in selected outputs. This is accomplished using a recursive-type algorithm which traces systematically the propagation and alteration of various errors. These error expressions can be used to analyze the impact that alternative quality control procedures would have on the selected outputs.
The paper concludes with a discussion of the tractability of the model for various types of information systems as well as an application to a representative scenario.
After discovering the inadequacy of traditional relationships across the value‐chain, many organizations today are establishing
new forms of interorganizational systems with their suppliers and customers in an effort to improve total channel performance.
Electronic commerce linkages are being created between independent organizations in multiple industries, including manufacturing,
financial services, transportation, and retailing. Efforts to improve channel efficiency using business‐to‐business electronic
commerce systems generally require increased interdependence and expanded coordination between independent firms to capture
the potential benefits enabled by tighter interorganizational integration of operations. Participating firms can gain dramatic
benefits from establishing electronic linkage only when the system is used to increase interdependence and to expand coordination
between firms involved in the new interorganizational relationship. Drawing on theoretical and empirical research on electronic
communications and inter‐firm designs, we develop and test a model for the relationship between performance, interdependence
and coordination of firms involved in interorganizational relations within the US grocery channel. The research design includes
qualitative case study analysis and quantitative survey data analysis to validate the key case study findings. Both qualitative
and quantitative findings indicate that channel performance, interdependence, and coordination are closely related for firms
in interorganizational relationships.
We all know RFID is going to change our industry. But we don’t know how much, or how soon. To make robust investment decisions
we need a better understanding of new technologies’ evolutionary journeys.
Manufacturers as well as retailers can suffer important losses as a result of stock-outs. The magnitude of these losses depends on specific consumer reactions, which have been found to vary with product, consumer, and situation factors. This paper presents a conceptual framework that integrates the major determinants of consumer reactions to stock-outs. The theoretical relationships provide explanations for the marked differences in stock-out effects observed in previous studies. Moreover, the framework can be empirically implemented, allowing retailers and manufacturers to determine how much each factor contributes to stock-out losses. We collect survey data to provide evidence on the relevance of the framework and the direction and importance of the effect of different consumer behaviors.
Information quality (IQ) is critical in organizations. Yet, despite a decade of active research and practice, the field lacks comprehensive methodologies for its assessment and improvement. Here, we develop such a methodology, which we call AIM quality (AIMQ) to form a basis for IQ assessment and benchmarking. The methodology is illustrated through its application to five major organizations. The methodology encompasses a model of IQ, a questionnaire to measure IQ, and analysis techniques for interpreting the IQ measures. We develop and validate the questionnaire and use it to collect data on the status of organizational IQ. These data are used to assess and benchmark IQ for four quadrants of the model. These analysis techniques are applied to analyze the gap between an organization and best practices. They are also applied to analyze gaps between IS professionals and information consumers. The results of the techniques are useful for determining the best area for IQ improvement activities.
Purpose
Seeks to carry out an empirical study to reveal the business characteristics of the printing industry and to accomplish a quantitative analysis of costs and benefits for RFID applications in different logistics activities.
Design/methodology/approach
The business operation requirements and RFID acceptance of distinct roles in the printing supply chain are explored via interviews and questionnaires. The printing supply chain is classified into six fundamental models and RFID application scenarios for the six models are also provided.
Findings
The ideal approach for RFID application in the printing supply chain is the item‐tagging mechanism.
Practical implications
The decision maker can refer to the cost and efficiency look‐up tables to quickly evaluate the feasibility for RFID implementation.
Originality/value
This paper provides useful reference information for enterprises to evaluate the RFID implementation in the supply chain.
Poor data quality (DQ) can have substantial social and economic impacts. Although firms are improving data quality with practical approaches and tools, their improvement efforts tend to focus narrowly on accuracy. We believe that data consumers have a much broader data quality conceptualization than IS professionals realize. The purpose of this paper is to develop a framework that captures the aspects of data quality that are important to data consumers.A two-stage survey and a two-phase sorting study were conducted to develop a hierarchical framework for organizing data quality dimensions. This framework captures dimensions of data quality that are important to data consumers. Intrinsic DQ denotes that data have quality in their own right. Contextual DQ highlights the requirement that data quality must be considered within the context of the task at hand. Representational DQ and accessibility DQ emphasize the importance of the role of systems. These findings are consistent with our understanding that high-quality data should be intrinsically good, contextually appropriate for the task, clearly represented, and accessible to the data consumer.Our framework has been used effectively in industry and government. Using this framework, IS managers were able to better understand and meet their data consumers' data quality needs. The salient feature of this research study is that quality attributes of data are collected from data consumers instead of being defined theoretically or based on researchers' experience. Although exploratory, this research provides a basis for future studies that measure data quality along the dimensions of this framework.
As societies have become more dependent on information systems to conduct and record transactions between organizations and individuals, interorganizational computer systems have become a widely used method of coordinating the actions of independent organizations. This article examines the quality of data in one important interorganizational system - the criminal-record system of the United States. The author examines two kinds of criminal-record systems: computerized criminal-history (CCH) records and computerized warrant records (Wanted-Person System - WPS).
Calum Paton’s article reads like a howl of pain when faced with the history of the past 20 years of ‘market-like’ reform to the NHS and the prospect of what is to come. Typically, he makes some powerful points. Not least, he highlights some of the unresolved tensions in current health policy. It does indeed remain pretty much of a mystery quite how patient choice, practice-based commissioning, and commissioning by primary care trusts will knit together, let alone how all NHS Trusts, foundation or not, are meant to make a profit (surplus) within a cash-limited system. But, while his article contains a litany of the problems, both actual and potential, that the ‘new NHS’ may bring, it is missing a counter factual. It contains an unspoken assumption that these changes are being made, almost willfully, to a system that was functioning, if not perfectly, then pretty well.
Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering, 2000. Includes bibliographical references (p. 61-64). by Yogesh V. Joshi. S.M.
Inventory inaccuracy is a main issue in businesses dealing with physical assets. The aim of this paper is to examine the relationship between inventory inaccuracy and performance in a retail supply chain. We simulate a three echelon supply chain with one product in which end-customer demand is exchanged between the echelons. In the base model, without alignment of physical inventory and information system inventory, inventory information becomes inaccurate due to low process quality, theft, and items becoming unsaleable. In a modified model, these factors that cause inventory inaccuracy are still present, but physical inventory and information system inventory are aligned at the end of each period. The results indicate that an elimination of inventory inaccuracy can reduce supply chain costs as well as the out-of-stock level. Auto-ID technologies can be one means to achieve inventory accuracy.
To increase productivity, organizations must manage information as they manage products. The field of information quality (IQ) has experienced significant advances during its relatively brief history. Today, researchers and practitioners alike have moved beyond establishing information quality as an important field to resolving IQ problems ranging from IQ definition, measurement, analysis, and improvement to tools, methods, and processes. However, theoretically-grounded methodologies for Total Data Quality Management (TDQM) are still lacking. Based on cumulated research efforts, this article presents such a methodology for addressing these problems. The purpose of this TDQM methodology is to deliver high quality information products to information consumers. It aims to facilitate the implementation of an organization's overall data quality policy formally expressed by top management. Organizations of the 21st century must harness the full potential of their data in order to gain competitive advantage and attain strategic goals.
Logistics in the food sector have become an increasingly important
factor in increasing competitiveness. This paper concludes that despite
the vast distribution of technology throughout the food supply industry,
rural producers still face many difficulties and challenges in becoming
integrated into such new systems. However, the producers who are able to
acquire and utilize the new and innovative technologies have been able
to build long-term relationships as suppliers to the regional retail
chains
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