Proceedings in pdf format. - Sociotechnical Systems Engineering ...

efficiency and product security as well as increasingcustomer satisfaction (IBM/METRO 2005).Overall, the today’s applications of RFID in logisticsare mainly still of prototype nature. Stroh et al. (2004)point out that it is application industries, like theretailing, FMCG, pharmaceutical, electronic andespecially automotive businesses, that push ahead testingand roll-out of RFID technology in logistics. In future,RFID is expected to be used if:• A higher level of automation might lead to moreefficient processes;• More precise data are required;• Information will automatically be exchanged;• A maximum level of security is necessary;• Physical conditions of the environment encouragethe use of this technology;• Comfort plays an important role to the customer.Mostly this will be the case in the fields of directarticle identification and the direct attachment of objectinformation to a particular item (see MyLogistics 2005).Pre-condition for a successful implementation ofRFID projects in a company is a strategically-oriented,well-structured procedure based upon a detailed analysisof all business processes affected by this.Nowadays, there are a number of problems that stillhinder the extended use of RFID; certain approaches aresupposed to contribute to overcome them (see Ibold2005):1. Missing standardization of the many and diversedata to be integrated• EPCglobal (http://www.epcglobal.de) worksfor economic and technical standards ofelectronic product codes;• The Future Store Initiative (http://www.futurestore.org)endeavours to harmonize RFIDtechnology especially in the retailer business.2. High investment costs• Larger numbers of tags and new technologiesfor them might result in a lasting decrease ofprices per unit;• A positive ROI calculation can be achieved ifthe introduction of RFID is combined with acomprehensive re-design of formerly quiteinefficient processes, e.g. in the service andmaintenance areas or related to thedocumentation of product life cycles.3. Potential risks to data protection, e. g. because hugenumbers of customer-specific data need to be storedor data might be accessed and manipulated byunauthorized persons:• Encodable chips and authentication could beused especially for high-sensible and farreachingapplications.Targeted cost-effect examinations and more pilotprojects will help to establish RFID technology in longterms. There are already big hopes for solving currentlogistics challenges through RFID implementation andhigh expectations towards potential improvements of thelogistics performance and process security. The latterrange from faster material flows and reduced processcosts to increased security of processes and improvedquality of data.The opportunity to store data directly on the datacarrier is supposed to lead to a complete change in theinformation systems and data structures. In principle,newly designed, optimized business processes areexpected, that might entail a quantum leap in logisticscost reduction.There are serious consequences on the future designof logistics; they concern all elements of logistics, i.e.logistics objects as well as logistics systems, networksand processes. In an increasing manner they shall haveown intelligence and be able to decide and actautonomously and decentralized.Even today, the term “intelligent logistics” is usedreferring to intelligent objects self-controlling theirmovement through logistics networks (see Schenk andRichter 2005), decisions being more and more madestraight on the layer of the physical flows (see TenHompel 2005b) and parts of processes becomingautonomous procedures in a decentralized control andmanagement structure (see Scholz-Reiter et al 2005).In the end, logistics has to face the following challenges:• The diversity of options offered by the highlydynamic technological progress is to be examinedaccording to their purposefulness for realizingeffective and efficient logistics processes of highquality;• Adequate concepts and solutions for process controland management in companies, supply chains andnetworks need to be developed;• The methodological foundations of planning,designing and analyzing logistics processes andsystems have to be expanded with regard to thesenew requirements.Annual Proceedings of Vidzeme University College “ICTE in Regional Development”, 200652