Implementation challenges of application of radio frequency identification (RFID) in warehouse

Witold Bahr, Ming K. Lim

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Warehouse is an essential component in the supply chain, linking the chain partners and providing them with functions of product storage, inbound and outbound operations along with value-added processes. Allocation of warehouse resources should be efficient and effective to achieve optimum productivity and reduce operational costs. Radio frequency identification (RFID) is a technology capable of providing real-time information about supply chain operations. It has been used by warehousing and logistic enterprises to achieve reduced shrinkage, improved material handling and tracking as well as increased accuracy of data collection. However, both academics and practitioners express concerns about challenges to RFID adoption in the supply chain. This paper provides a comprehensive analysis of the problems encountered in RFID implementation at warehouses, discussing the theoretical and practical adoption barriers and causes of not achieving full potential of the technology. Lack of foreseeable return on investment (ROI) and high costs are the most commonly reported obstacles. Variety of standards and radio wave frequencies are identified as source of concern for decision makers. Inaccurate performance of the RFID within the warehouse environment is examined. Description of integration challenges between warehouse management system and RFID technology is given. The paper discusses the existing solutions to technological, investment and performance RFID adoption barriers. Factors to consider when implementing the RFID technology are given to help alleviate implementation problems. By illustrating the challenges of RFID in the warehouse environment and discussing possible solutions the paper aims to help both academics and practitioners to focus on key areas constituting an obstacle to the technology growth. As more studies will address these challenges, the realisation of RFID benefits for warehouses and supply chain will become a reality.
Original languageEnglish
Title of host publicationProceeedings of 11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises
EditorsMarco Macchi, Roberto Pinto
Place of PublicationBergamo (IT)
PublisherUniversità degli Studi di Bergamo
ISBN (Print)978-88-89555-090-5
Publication statusPublished - 2009
Event11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises - Bergamo, Italy
Duration: 15 Oct 200916 Oct 2009
http://www.mitip2009.org/

Conference

Conference11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises
Abbreviated titleMITIP 2009
CountryItaly
CityBergamo
Period15/10/0916/10/09
OtherThe purpose of this conference is to serve as a forum for the dissemination of ideas, knowledge and experiences about the ICT-driven innovation in industrial products, processes and services. The conference is targeted to scholars and practitioners involved in research activities focusing on the role of ICT in modern industrial enterprises.
Internet address

Fingerprint

Warehouses
Radio frequency identification (RFID)
Supply chains
Radio waves
Materials handling
Logistics
Costs
Productivity

Bibliographical note

11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises, 15-16 October 2009, Università degli Studi di Bergamo, Bergamo (IT).

Keywords

  • radio frequency identification technology
  • RFID
  • warehouse

Cite this

Bahr, W., & Lim, M. K. (2009). Implementation challenges of application of radio frequency identification (RFID) in warehouse. In M. Macchi, & R. Pinto (Eds.), Proceeedings of 11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises Bergamo (IT): Università degli Studi di Bergamo.
Bahr, Witold ; Lim, Ming K. / Implementation challenges of application of radio frequency identification (RFID) in warehouse. Proceeedings of 11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises. editor / Marco Macchi ; Roberto Pinto. Bergamo (IT) : Università degli Studi di Bergamo, 2009.
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Bahr, W & Lim, MK 2009, Implementation challenges of application of radio frequency identification (RFID) in warehouse. in M Macchi & R Pinto (eds), Proceeedings of 11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises. Università degli Studi di Bergamo, Bergamo (IT), 11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises, Bergamo, Italy, 15/10/09.

Implementation challenges of application of radio frequency identification (RFID) in warehouse. / Bahr, Witold; Lim, Ming K.

Proceeedings of 11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises. ed. / Marco Macchi; Roberto Pinto. Bergamo (IT) : Università degli Studi di Bergamo, 2009.

Research output: Chapter in Book/Report/Conference proceedingChapter

TY - CHAP

T1 - Implementation challenges of application of radio frequency identification (RFID) in warehouse

AU - Bahr, Witold

AU - Lim, Ming K.

N1 - 11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises, 15-16 October 2009, Università degli Studi di Bergamo, Bergamo (IT).

PY - 2009

Y1 - 2009

N2 - Warehouse is an essential component in the supply chain, linking the chain partners and providing them with functions of product storage, inbound and outbound operations along with value-added processes. Allocation of warehouse resources should be efficient and effective to achieve optimum productivity and reduce operational costs. Radio frequency identification (RFID) is a technology capable of providing real-time information about supply chain operations. It has been used by warehousing and logistic enterprises to achieve reduced shrinkage, improved material handling and tracking as well as increased accuracy of data collection. However, both academics and practitioners express concerns about challenges to RFID adoption in the supply chain. This paper provides a comprehensive analysis of the problems encountered in RFID implementation at warehouses, discussing the theoretical and practical adoption barriers and causes of not achieving full potential of the technology. Lack of foreseeable return on investment (ROI) and high costs are the most commonly reported obstacles. Variety of standards and radio wave frequencies are identified as source of concern for decision makers. Inaccurate performance of the RFID within the warehouse environment is examined. Description of integration challenges between warehouse management system and RFID technology is given. The paper discusses the existing solutions to technological, investment and performance RFID adoption barriers. Factors to consider when implementing the RFID technology are given to help alleviate implementation problems. By illustrating the challenges of RFID in the warehouse environment and discussing possible solutions the paper aims to help both academics and practitioners to focus on key areas constituting an obstacle to the technology growth. As more studies will address these challenges, the realisation of RFID benefits for warehouses and supply chain will become a reality.

AB - Warehouse is an essential component in the supply chain, linking the chain partners and providing them with functions of product storage, inbound and outbound operations along with value-added processes. Allocation of warehouse resources should be efficient and effective to achieve optimum productivity and reduce operational costs. Radio frequency identification (RFID) is a technology capable of providing real-time information about supply chain operations. It has been used by warehousing and logistic enterprises to achieve reduced shrinkage, improved material handling and tracking as well as increased accuracy of data collection. However, both academics and practitioners express concerns about challenges to RFID adoption in the supply chain. This paper provides a comprehensive analysis of the problems encountered in RFID implementation at warehouses, discussing the theoretical and practical adoption barriers and causes of not achieving full potential of the technology. Lack of foreseeable return on investment (ROI) and high costs are the most commonly reported obstacles. Variety of standards and radio wave frequencies are identified as source of concern for decision makers. Inaccurate performance of the RFID within the warehouse environment is examined. Description of integration challenges between warehouse management system and RFID technology is given. The paper discusses the existing solutions to technological, investment and performance RFID adoption barriers. Factors to consider when implementing the RFID technology are given to help alleviate implementation problems. By illustrating the challenges of RFID in the warehouse environment and discussing possible solutions the paper aims to help both academics and practitioners to focus on key areas constituting an obstacle to the technology growth. As more studies will address these challenges, the realisation of RFID benefits for warehouses and supply chain will become a reality.

KW - radio frequency identification technology

KW - RFID

KW - warehouse

M3 - Chapter

SN - 978-88-89555-090-5

BT - Proceeedings of 11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises

A2 - Macchi, Marco

A2 - Pinto, Roberto

PB - Università degli Studi di Bergamo

CY - Bergamo (IT)

ER -

Bahr W, Lim MK. Implementation challenges of application of radio frequency identification (RFID) in warehouse. In Macchi M, Pinto R, editors, Proceeedings of 11th International Conference on the Modern Information Technology in the Innovation Processes of the Industrial Enterprises. Bergamo (IT): Università degli Studi di Bergamo. 2009