RFID in the Supply Chain - Guide to Sele - Size
RFID in the Supply Chain - Guide to Sele - Size
RFID in the Supply Chain - Guide to Sele - Size
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xxii � <strong>RFID</strong> <strong>in</strong> <strong>the</strong> <strong>Supply</strong> Cha<strong>in</strong>: A <strong>Guide</strong> <strong>to</strong> <strong>Sele</strong>ction and Implementation<br />
Defense, Target, Albertsons, and Best Buy <strong>in</strong> <strong>the</strong> United States, and <strong>the</strong><br />
METRO Group <strong>in</strong> Germany. These cus<strong>to</strong>mers mandated <strong>the</strong> suppliers provide<br />
<strong>the</strong>ir own <strong>RFID</strong> equipment and <strong>in</strong>frastructure and deliver <strong>RFID</strong>-tagged<br />
cases and pallets of items by January 1, 2005. O<strong>the</strong>r large retailers provided<br />
<strong>the</strong>ir <strong>to</strong>p suppliers with <strong>RFID</strong> equipment and technology <strong>to</strong> help <strong>the</strong>m <strong>to</strong><br />
get started. Some suppliers who did not receive <strong>the</strong> mandates or <strong>the</strong> <strong>RFID</strong><br />
equipment from <strong>the</strong>ir cus<strong>to</strong>mers decided <strong>to</strong> <strong>in</strong>vest voluntarily <strong>in</strong> <strong>RFID</strong> technology<br />
ra<strong>the</strong>r than wait<strong>in</strong>g for <strong>the</strong> “second” mandates and for opportunities<br />
<strong>to</strong> reap profits from <strong>RFID</strong> technology later on.<br />
There are suppliers who have received <strong>the</strong> mandate from a cus<strong>to</strong>mer,<br />
and <strong>the</strong> <strong>RFID</strong> equipment from ano<strong>the</strong>r cus<strong>to</strong>mer and have <strong>in</strong>troduced or<br />
already <strong>in</strong>troduced emerg<strong>in</strong>g <strong>RFID</strong> technologies <strong>in</strong><strong>to</strong> <strong>the</strong>ir companies without<br />
wait<strong>in</strong>g for ei<strong>the</strong>r a mandate or <strong>RFID</strong> equipment from a third cus<strong>to</strong>mer.<br />
There are some suppliers who have received mandates from cus<strong>to</strong>mers<br />
each requir<strong>in</strong>g different <strong>RFID</strong> <strong>in</strong>frastructure implementation, depend<strong>in</strong>g on<br />
<strong>the</strong> type of item and package <strong>to</strong> be tagged.<br />
There are suppliers who have implemented or planned <strong>to</strong> implement<br />
<strong>RFID</strong> technology <strong>in</strong> a portion of <strong>the</strong> supply cha<strong>in</strong> with <strong>the</strong> <strong>in</strong>tention of<br />
implement<strong>in</strong>g it <strong>to</strong> <strong>the</strong> rema<strong>in</strong><strong>in</strong>g part of <strong>the</strong> supply cha<strong>in</strong>. This will happen<br />
when <strong>RFID</strong> technology gets more sophisticated, or <strong>the</strong> cus<strong>to</strong>mers issue new<br />
mandates, or provide suppliers with more advanced <strong>RFID</strong> equipment.<br />
The supplier–cus<strong>to</strong>mer relationship <strong>in</strong> select<strong>in</strong>g and implement<strong>in</strong>g <strong>the</strong><br />
<strong>RFID</strong> technology can get very complex <strong>in</strong> <strong>the</strong> supply cha<strong>in</strong>. Issues of what<br />
implementation approaches are used, how bus<strong>in</strong>ess process should be<br />
reeng<strong>in</strong>eered, and how organizational maturity affects reeng<strong>in</strong>eer<strong>in</strong>g<br />
projects should be addressed <strong>in</strong> one or more bus<strong>in</strong>ess process models I<br />
developed. They are (1) Multi-Layer <strong>RFID</strong> Bus<strong>in</strong>ess Process Models (basic,<br />
adaptive, and predictive), and (2) <strong>RFID</strong> bus<strong>in</strong>ess process life cycles <strong>in</strong>clud<strong>in</strong>g<br />
<strong>the</strong> adaptive l<strong>in</strong>ear feedback, and adaptive dynamic life-cycle models.<br />
For background materials on bus<strong>in</strong>ess processes models, <strong>the</strong> reader<br />
should have a basic understand<strong>in</strong>g of <strong>the</strong> supply cha<strong>in</strong> overview as discussed<br />
<strong>in</strong> Chapter 1. Then <strong>the</strong> reader should move on <strong>to</strong> <strong>the</strong> next chapter<br />
on <strong>RFID</strong> selection guidel<strong>in</strong>e and implementation examples, such as speed<br />
of tag reads versus quality of computer <strong>in</strong>puts, and optimal tag location.<br />
An understand<strong>in</strong>g of <strong>the</strong> <strong>RFID</strong> application <strong>in</strong> <strong>Supply</strong> Cha<strong>in</strong> Management<br />
as discussed <strong>in</strong> Chapter 3 should be acquired before <strong>the</strong> reader proceeds<br />
<strong>to</strong> <strong>the</strong> implementation of a bus<strong>in</strong>ess process model. The reader should be<br />
aware that <strong>the</strong> bus<strong>in</strong>ess and IT executives have different concerns on implement<strong>in</strong>g<br />
<strong>the</strong> <strong>RFID</strong> applications. The bus<strong>in</strong>ess executives are concerned with<br />
cus<strong>to</strong>mers and vendors and about <strong>the</strong> bus<strong>in</strong>ess processes that need <strong>to</strong> be<br />
adapted <strong>to</strong> SCM logistics <strong>in</strong> response <strong>to</strong> chang<strong>in</strong>g cus<strong>to</strong>mers’ demand for<br />
supplies and <strong>in</strong>formation about <strong>the</strong>m. The IT executives, on <strong>the</strong> o<strong>the</strong>r hand,