Title: Connective technology as a strategic tool for building effective supply chain

Authors: Sameer Kumar

Addresses: College of Business, University of St. Thomas, Mail # TMH 343, 1000 LaSalle Avenue, Minneapolis, MN 55403-2005, USA

Abstract: A strategic perspective on Radio Frequency Identification (RFID), an important connective technology for building effective supply chain for the consumer products is presented. Suppliers are cautiously responding to the retailers| demands in implementing this technology. The primary question for the industry is which immediate or near term RFID initiatives can produce positive return on investment. Industry survey in which participants rate the validity of various research suppositions derived from industrial experts provides basic understanding of the issues involved. An analytical model of RFID technology deployment using Wal-Mart RFID compliance example illustrates how lower shipment processing costs and lead times result in smaller cycle inventory and safety stocks.

Keywords: automatic identification; auto-ID; radio frequency identification; RFID devices; connective technology; disruptive technology; electronic product code; EPC; supply chain management; SCM; consumer products; retail industry; Wal-Mart; RFID compliance; inventory stocks; safety stocks; shipment costs; shipment lead times; logistics; return on investment; ROI.

DOI: 10.1504/IJMTM.2007.011400

International Journal of Manufacturing Technology and Management, 2007 Vol.10 No.1, pp.41 - 56

Published online: 30 Nov 2006 *

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