A hierarchical model of the impact of RFID practices on retail supply chain performance

Ilias P. Vlachos
2014 Expert systems with applications  
The primary purpose of this study was to evaluate the impact of RFID practices on supply chain performance. We examined eight variables of RFID applications grouped in two categories: location (supplier's warehouse, retailer's central warehouse, retailer's local warehouse, retailer's owned stores) and utilisation (standards, transportation, pallet level, specialised software). Given the inherent difficulty in assessing supply chain performance and the widespread use of different performance
more » ... ls, such as the SCOR and balanced scorecard, we developed a list of performance indicators. Factor analysis produced 7 supply chain performance factors: supplier, inventory, distribution, ordering, plan, sales, and forecasting. Empirical data were collected via an online survey administered to 300 retail companies. Of the 300 surveys, 130 usable questionnaires were returned, for a 43.3% response rate. To the best of our knowledge, this is the first study to provide an analytical model that places supply chain performance indicators as dependent variables in a hierarchical regression equation with RFID variables as independent variables. Results found that the implementation of RFID practices significantly affect the supply chain performance in the following areas: supplier, inventory, distribution, plan, sales, and forecasting. RFID can improve the performance of distribution systems, including products dispatched and inventory in transit by 33.8% and stock availability by 45.6%. This study contributes to both the RFID and the supply chain performance literatures. Limitations and suggestions for further research are also discussed. Highlights  RFID practices have a positive impact on stock availability (45.4%), waste (42.2%), sales increase (40.1%), and overall supply performance (36.3%).  RFID adoption can provide a source of sustainable competitive advantage, which will attract more companies in the near future.  KPIs need to address planning, forecasting, source, replenishment, ordering, distribution and delivery, store operations, and sales and returns
doi:10.1016/j.eswa.2013.07.006 fatcat:o6o2knto3ragdled24djjsjete