Applying RFID in logistics management : perception of telecommunication service providers

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Applying RFID in logistics management : perception of telecommunication service providers

 

Author: Cheung, Kam-fun Anita
Title: Applying RFID in logistics management : perception of telecommunication service providers
Degree: D.B.A.
Year: 2007
Subject: Hong Kong Polytechnic University -- Dissertations.
Business logistics -- Management.
Radio frequency identification systems.
Telecommunication systems.
Department: Graduate School of Business
Pages: 196 leaves : ill. ; 30 cm.
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b2147091
URI: http://theses.lib.polyu.edu.hk/handle/200/2992
Abstract: Radio frequency identification ("RFID") has been considered the next wave in logistics management to replace the market position of using barcode in the future. RFID declares unique identities of each commodity for real time visibility, fewer stock-outs, better merchandising and faster checkout and services. RFID can track cumbersome pallets of goods clogging up warehouse and it is getting attention from logistics service providers for its ability to make every item under tracking even after the item has been out of the warehouse. By equipping mobile phones and electronic devices with GPS (Global Positioning Systems) or GPRS (General Packet Radio System) service, service providers can offer logistics industry a means of real-time tracking and enquiry on goods information, all the while bulking up on mobile service time and data usage. Since RFID has not been widely applied yet, it is important to investigate the views from its providers in order to analyze the cost/benefits of its utilization. This research is to analyze RFID potential value for service providers in telecommunication/RFID service in order to determine if it is worthwhile to implement RFID and its related Value-Added Service (VAS) in Hong Kong. The research uses business simulation to analyze cost and benefit data in decision making focusing on how this set of data can help service providers to support and enhance top-rated market propositions in four major areas: Promotion, VAS Packaging, Marketing Strategies and Solution Readiness. Quantitative numerical experiments are then used to determine the optimal usage level and expected total cost generating from usage in major operations: inbound/outbound transport, stock checking, stock picking and customs clearance. The new RFID-enabled logistics model defined in this research has shown enhancement on customs clearance and warehousing management via the use of RFID and telecommunication technology. In this research, RFID operations related total cost function is defined for a proposed RFID-enabled cross-border road freight model. Simulations are used to prove the RFID operations related total cost function is true and can be applied to any similar system model. Changing of system parameters during simulations determines the effect of operation factor (price of tag, depreciation rate of RFID equipment, number of RFID equipment, price of RFID equipment, quota for communication usage, average number of customer enquiry, etc). Business simulation with quantitative data is used to convince customers to understand the value parameters to adopt RFID and further gear up the right direction of resources in order to capture this potential market. Scenario analyses are carried out to verify that the total cost function is valid in all cases. These analyses show the RFID operations related total cost in business scenarios in order to motivate customers to apply RFID with VAS of telecommunication into their logistics processes. This study serves as guidance for a telecommunication to understand the business critical path for a successful RFID implementation. As a result, RFID, from the perception of telecommunication service providers, is becoming part of a huge wireless communications system and becoming a ubiquitous networked utility assisted in automation and process streamline.

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