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Assessing the Impact of RFID on Return Center Logistics

Author

Listed:
  • Nishtha Langer

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

  • Chris Forman

    (College of Management, Georgia Institute of Technology, Atlanta, Georgia 30308)

  • Sunder Kekre

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

  • Alan Scheller-Wolf

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

Abstract

As many manufacturers, retailers, distributors, and logistics firms adopt RFID, the technology is becoming pervasive in the supply chain. Although its advocates include retail giants such as Wal-Mart, not all companies are enthusiastic about its benefits. It is not clear whether RFID is a boon or a curse to the supply chain---its market growth may just be an issue of compliance. To establish the real benefits of RFID, we conducted a field study with GENCO, a third-party logistics company that deployed RFID in the outbound logistics operations at one of its return centers. Our analysis found that the RFID implementation had a significant impact on the GENCO outbound process. The number of customer claims fell substantially following the RFID deployment. After controlling for other factors in our model, we confirmed that RFID was a key factor that contributed to the positive results at this return center. The current study underscores the potential of RFID for today's businesses.

Suggested Citation

  • Nishtha Langer & Chris Forman & Sunder Kekre & Alan Scheller-Wolf, 2007. "Assessing the Impact of RFID on Return Center Logistics," Interfaces, INFORMS, vol. 37(6), pages 501-514, December.
    • Handle: RePEc:inm:orinte:v:37:y:2007:i:6:p:501-514
    DOI: 10.1287/inte.1070.0308
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    References listed on IDEAS

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    1. Timothy Bresnahan & Shane Greenstein, 1996. "Technical Progress and Co-invention in Computing and in the Uses of Computers," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(1996 Micr), pages 1-83.
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    Cited by:

    1. Ahmed Musa & Al-Amin Abba Dabo, 2016. "A Review of RFID in Supply Chain Management: 2000–2015," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 17(2), pages 189-228, June.
    2. Sarac, Aysegul & Absi, Nabil & Dauzère-Pérès, Stéphane, 2010. "A literature review on the impact of RFID technologies on supply chain management," International Journal of Production Economics, Elsevier, vol. 128(1), pages 77-95, November.
    3. Chang, Seokcheol & Klabjan, Diego & Vossen, Thomas, 2010. "Optimal radio frequency identification deployment in a supply chain network," International Journal of Production Economics, Elsevier, vol. 125(1), pages 71-83, May.
    4. Hartzel, Kathleen S. & Wood, Charles A., 2017. "Factors that affect the improvement of demand forecast accuracy through point-of-sale reporting," European Journal of Operational Research, Elsevier, vol. 260(1), pages 171-182.
    5. Dario Pacciarelli & Andrea D’Ariano & Michele Scotto, 2011. "Applying RFID in warehouse operations of an Italian courier express company," Netnomics, Springer, vol. 12(3), pages 209-222, October.

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