Importance of Radio Frequency Identification in Supply Chain and Logistic

This study focuses on the importance and benefits of using Radio Frequency Identification (RFID) in the supply chain and logistics of the grocery industry in the UK. It discusses the advantages of RFID in reducing delivery time and errors, improving customer satisfaction, and enhancing inventory management. It also highlights the limitations of RFID, such as implementation costs and potential job losses. The study further explores how retailers can leverage RFID to gain a competitive advantage in the market. The research methodology includes quantitative data collection through questionnaires and the analysis of primary data. The sample consists of 30 managers from Tesco, a leading grocery retailer in the UK.

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Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1: EXPLAINATION OF KEY CONCEPTS.................................................................1
Importance or benefits of using Radio frequency Identification in supply chain and logistic1
Disadvantages and limitations of Research frequency identification.....................................2
Usage of RFID in taking competitive advantages by retailers...............................................3
SECTION 2: OVERVIEW OF CONTEMPORARY CONTEXT OF PROJECT..........................3
Industry overview...................................................................................................................3
Background data.....................................................................................................................4
Research perspectives.............................................................................................................4
Focus of the study...................................................................................................................4
SECTION 3: PLAN FOR UNDERTAKING RESEARCH............................................................5
3.1 Research objectives..........................................................................................................5
3.2 Proposed research methods..............................................................................................5
3.3 Data collection..................................................................................................................6
SECTION 4: RESEARCH ETHICS................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

TITLE: To identify importance of Radio frequency identification in supply chain and
logistic of grocery industry of the UK.
INTRODUCTION
Radio frequency identification is known as one of the most revolutionary tools in logistic
and supply chain as it makes companies able to share data by making use of radio frequency
electromagnetic fields (Jadán-Guerreroa, Guerrerob and Sharmac, 2016). One of the main aim of
using this by companies in logistic and supply chain is becoming sustainable, cost effective and
becoming more competitive in the market. RFID tag plays an important role as it allows
suppliers and manufacturer in tracking every single part which they use in their goods which
provides visibility and tracking information.
This present study is going to show benefits which retailers can have by making use o RFID
in their supply chain with supportive views of authors. Further, it will also show some
disadvantages of this RFID along with ways to solve them and making use of it in an effective
manner. Research methodology and research ethics also play an important role in conducting and
making study successful by using different elements of it like research strategy, approaches, data
collection and analysis.
SECTION 1: EXPLAINATION OF KEY CONCEPTS
Importance or benefits of using Radio frequency Identification in supply chain and logistic
According to the Chan, (2016) radio frequency identification technology has several
benefits and one of the main effectiveness of this technology is it reduces total cycle time order
of delivery of products to final customers which increases customers satisfaction. In addition, it
is also identified that by making an effective use of this technology several retailers including
Tesco and Sainsbury’s are reducing errors in products delivery to customers like damages,
delivery to wrong address and others. It overall helps companies in retaining their customers
with them for the long run because when customers receive their orders before the time and in a
timely manner without any errors and mistakes with higher quality then it makes them feel
valued and motivated. Motivated customers are more likely to stay with the company and
engaged with them.
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For more supporting this view and in regards to benefits of RFID in supply chain,
Papadopoulos and et.al., (2017) stated that it allows suppliers and manufacturers to monitor all
logistic operations by maintaining higher security in it. It is one of the main key of the success of
retailers. Companies also do not require man power and guidance of leader and manager in
maintaining logistic which can decrease their cost of labour and increase speed. Overall it can be
said that it helps them out in taking better decision regarding supply chain.
Disadvantages and limitations of Research frequency identification
Rather, some advantages of this tool there are some limitations and disadvantages of this
tool and technique. According to the Kummetz and Eisenwinter, (2017) one of the main
limitation of this tool is implementation of this technique and tool in business for supply chain
and logistic control is expensive. Small and medium scale of companies cannot implement this
tool in their business and it can increase wealth gap. Due to this factor, small scale of companies
face problems in being in the competition and also face problems in attracting customers an
competing with large scale of businesses. It is also analysed that t reduces man force and
companies who make use of this tool and technique do not require labour as they used to require
before. It means it reduces employability opportunity and there are several people who have lost
their jobs due to increasing use of technology and it is also affecting economy and increasing
wealth gap. When people do not get employment opportunities then they are more likely to
commit crimes which is increase crime rates in societies and also increasing fear.
It is also being stated Zhang, Li and Fan, (2018) that used resources and materials in this
tool like metal for transferring data and signals or tracking order can direct affect signals and
sometimes it caused errors in locating or tracking orders. As compare to barcode scanners which
is also being used for tracking orders and managing supply chain in an effective manner, there
are some chances of failure and lack of accuracy in this Radio frequency identification tool. It is
stated that this tool allows companies and retailers in reducing labour cost and saving time but at
the time of implementation companies face some difficulties in implementation as it is quite
difficult and expensive. So, overall it can be said that implementation cost and time is the main
areas of limitations.
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Usage of RFID in taking competitive advantages by retailers
RFID is known as a wireless technology which allows companies and retailers to identify
as well as gather all information’s from tags via radio waves and tracking multiples orders and
objectives with effectively. Retailers can also gain more control over their stocks and when they
become successful in controlling orders and stocks then they are more likely to stay in the
competition, making an effective position and also becoming the market leader. In this context
Soegoto, (2018) stated some ways and reasons as why this tool allow companies in taking
competitive advantages. One of the main reason which is being stated in this context which
allows companies in taking competitive advantage is retailers get real time data from this
technology which allows them to take better decision and managing inventory. A proper and
successful inventory management and delivery of orders to customers improve their image in the
eyes of customers and market which eventually help them in making an effective position in the
market.
RFID tool also allows retailers in managing employees by tracking out their progress. A
proper people management and inventory management directly helps them out in scheduling of
corporate resources for taking competitive advantages. After successful implementation of this
tool within business, retailers become more able to earn back the investment quicker by reducing
other cost like labour and others so, overall it can be said that initially company requires
investment and after that it gets benefits only.
SECTION 2: OVERVIEW OF CONTEMPORARY CONTEXT OF
PROJECT
Industry overview
This study is based on retail industry and Tesco which is a British multinational groceries and
general merchandise retailers. It has around 6,800 shops or locations where it operates with
having around 45,000 employees. One of the main strength of this retailer is skilled workforce
and different strategies used by it which makes it able to develop business (Geyskens, 2018). By
conducting this research, this retailer can be made aware about effectiveness of Radio frequency
identification tool which can help it out in performing functions related to supply chain and
delivering products to end users in an effective manner. There are several benefits have been
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identified of RFID by Tesco such as it can have access and clear picture as how stock moves
from warehouse to sales floor and also allows them to freeing up time of staff members to
maximize customers facing roles.
In addition, there are several other retailers who are also making use of RFID and they also
stated that it is allowing them to reduce human efforts as well as errors and automates data
collection. In this context Marks and Spencer’s stated that their RFID readers has an ability to
read multiple RFID tags which increase their efficiency.
Background data
For collecting data it is important to select appropriate sources from where all information
relevant to the topic can be gathered. There are several sources such as: online expert
commentaries, newspaper articles, consumer reports and others and among all of these ,
researcher focuses on articles and business reports in order to know the actual situation of the
company along with ways of performing or strategies used by them. It also makes able to
improve ways of performing.
Research perspectives
This research study is based on Tesco plc which is a well-known retailers having several
shops and skilled workforce. By conducting this research, functions of supply chain manager can
be made easier as chosen tool radio frequency identification help suppliers and manager in
tracking records and performing function in an effective manner (Ali and Haseeb, 2019). By
conducting research with supply chain manager of Tesco Plc, this study can be conducted in an
effective manner because supply chain manager have detailed information about logistic and
supply chain management as which problems they face. How they solve them and others.
Focus of the study
The main focus of this research study is on identifying importance or all benefits which retailers
can take by making use of Radio frequency identification tool in supply chain and inventory. By
knowing effective ways of using this tool Tesco and other retailers can take competitive
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advantages and make an effective position in the market which can lead in improving revenue
(Ownby and et.al., 2019).
This research will mainly focus on identifying all benefits along with best ways of making use of
this Radio frequency identification tool for supply chain and accomplishing goals.
SECTION 3: PLAN FOR UNDERTAKING RESEARCH
3.1 Research objectives
1. To identify importance and benefits of using Radio frequency identification in supply
chain and logistic in the grocery sector
2. To explore some limitations or problems of increasing cost of Research frequency
identification for retailers of grocery sector.
3. To identify ways of taking competitive advantages by making use of RFID by retailers of
grocery.
3.2 Proposed research methods
Selection of research methods play an important role as it allows researcher in conducting
research by gathering information in an effective manner.
Research type: There are mainly 2 types of research which refers form in which data are being
collected by scholar such as: qualitative and quantitative (Park and Park, 2016). Qualitative
research refers non-numerical data or all information which are being collected in words and
feelings form in known as qualitative. Whereas, numerical or statistical data is being known as
quantitative research. Selection of research type depend upon the nature of the research study.
Justification: For this study researcher selects quantitative because in this type of research
researcher can gather more focused information which can help them out in performing further
functions in an effective manner. Researcher can generalize information from large sample and it
is the main reason of selecting this type.
Research method for primary data- It refers techniques and strategies by which data are being
gathered. Some appropriate research methods or techniques which can allow researcher in
gathering primary data include: algorithm, schemes and others.
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Research approach: Research approach also plays an important role as it...
Inductive and deductive are main research approach and selection of approaches depend upon
the selected research type. For example: inductive approach is suitable with qualitative and
deductive approach is suitable with quantitative. In inductive approach, scholar generates new
theory for gathering more relevant information and in deductive approach, scholar develop an
existing theory (Zalaghi and Khazaei, 2016).
Justification: For this study, scholar selects deductive approach as it is suitable with quantitative
and it is time saving approach. When researcher develops an existing theory then they do not
have to invest time as compare to inductive research approach. For this research study and
gathering information about radio frequency identification, researcher will make use of primary
data collection with the help of questionnaire. As compare to secondary, primary data collection
is quite time consuming but researcher can get new data which can help them out in maintaining
accuracy.
3.3 (A) Data collection
After selecting research, data collection also plays an important role. There are 2 types of
data collection such as: primary and secondary. In primary data collection, researcher gather
brand new data for the very first time and that is why it is called primary data. Primary data are
those which are not being used before by any other researcher and for the first time researcher
gather such data and that is why it is called primary data. Questionnaire, survey are some sources
of data collection (Franzitta and et.al., 2020). In secondary data collection, researcher gathers
second hand data which are already being published before. There are some sources from which
any one can have access and can gather data and that is the reason it is considered secondary data
such as internet as by research people can have data which are being published before. By
making use of internet, books and journals and articles researcher gather secondary data.
Data analysis: After collecting data, it is important for researcher to make them accurate and
analyse them. As like research type, data analysis tools are also being categorized into 2 [arts
such as: qualitative and quantitative. This research is quantitative so, quantitative data analysis
tools will be chosen by researcher for analysing numerical or statistical data. On the other hand,
for non-numerical data researcher selects qualitative data analysis tools like thematic analysis.
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By making an effective use of statistical data analysis tool researcher will make data accurate
and reliable.
Sample:
Sample refers a group of people which is being selected by scholar as a participants of research
and the process for selecting target people is known as sampling. Random and non-random are 2
sampling. In random type, scholar select target people randomly and in non-random they select
on the basis of some set criteria like education, gender and others and it is called non-random.
For this study scholar selects random as it is biased free and make selected people feel valued. 30
managers of Tesco will be selected as a sample hypothetically as by knowing details of Tesco as
in actually what it is doing and how radio frequency identification is helping this retailer in
accomplishing goals and also taking competitive advantages.
One of the main reasons being selecting managers of Tesco is they are well-known with this
Radio frequency identification tool and also know consequences and advantages so, they can
provide accurate and relevant information.
Practical plan of the research instruments
Questionnaire is known as the best way of collecting relevant information and also
understanding human behaviour while collecting data. It is also a collection of some questions
which is being asked by researcher from sample in order to gather quantitative data in an
accurate manner. By some close ended and open ended questions, scholar gather information and
provide equal as well as fair opportunities to all samples. It is crucial and important of knowing
benefits or effectiveness of radio frequency identification in supply chain and inventory
management for helping out Tesco and other retailers of making use of it along with reducing
disadvantages. It is a qualitative research and for collecting data managers are being selected as
hypothetically
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SECTION 4: RESEARCH ETHICS
Ethics also play an important role at every stage. In the context of research study it can be said
that ethics make scholar aware and able to identify the difference between the wrong conduct
and the right conduct and taking better decision at every stage (Battiste, 2016). By following all
ethical principles and morals researcher can improve their image and make study successful. By
doing so, they can protect themselves from failure of research, delay in submission of research
and others. Some codes of ethics related to research include:
1. To not force participants for taking participation in research study.
2. To keep information of participants and organizations safe and secure.
3. To not hurt anyone in any manner and following right acts.
4. To not share private and professional information of company with any other firm.
So, from the above discussed codes of ethics, it can be said that, scholar can complete this study
successful.
CONCLUSION
From the above research it has been summarized that radio frequency identification
played a vital role in retail industry in managing inventory and supply chain. It allows retailers in
tracking customers’ orders and eliminating errors occur in delivery of products and services. It
has also discussed importance of using the best and appropriate research type and approach as it
allows scholar to have or gather information on which basis they can make the study successful
and accomplish pre-determined goals. With different views of authors and literature review it has
also been identified that radio frequency identification have some problems or limitation such as
sometimes it leads errors in tracking due to metal used in this tool, expensive and time
consuming implementation. Lastly, it has discussed ways by which retailer are taking
competitive advantages and effectiveness of ethics in conducting research and making study
successful.
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REFERENCES
Books & Journals
Ali, A. and Haseeb, M., 2019. Radio frequency identification (RFID) technology as a strategic
tool towards higher performance of supply chain operations in textile and apparel
industry of Malaysia. Uncertain Supply Chain Management, 7(2), pp.215-226.
Battiste, M., 2016. Research Ethics for Chapter Protecting Indigenous Knowledge and
Heritage. Ethical futures in qualitative research: Decolonizing the politics of
knowledge, 111.
Chan, H.L., 2016. Using radiofrequency identification (RFID) technologies to improve decision-
making in apparel supply chains. In Information systems for the fashion and apparel
industry (pp. 41-62). Woodhead Publishing.
Franzitta, V. and et.al., 2020. Primary Data Collection and Environmental/Energy Audit of Hot
Mix Asphalt Production. Energies, 13(8), p.2045.
Geyskens, I., 2018. Retailer power in the grocery industry. In Handbook of Research on
Retailing. Edward Elgar Publishing.
Jadán-Guerreroa, J., Guerrerob, L.A. and Sharmac, T., 2016, December. Improving the
interaction of Down syndrome students through the use of RFID technology. In 2016
IEEE MTT-S Latin America Microwave Conference (LAMC) (pp. 1-4). IEEE.
Kummetz, T. and Eisenwinter, S., CommScope Technologies LLC, 2017. Detective passive RF
components using radio frequency identification tags. U.S. Patent 9,590,761.
Ownby, J.F. and et.al., 2019. Radio frequency identification tag delivery system. U.S. Patent
10,198,606.
Papadopoulos, T. and et.al., 2017. Big data and RFID in supply chain and logistics management:
A review of the literature and applications for data driven research. In Supply Chain
Management in the Big Data Era (pp. 108-123). IGI Global.
Park, J. and Park, M., 2016. Qualitative versus quantitative research methods: Discovery or
justification?. Journal of Marketing Thought, 3(1), pp.1-8.
Soegoto, E.S., 2018. Radio frequency identification (RFID) smart card on parking system as e-
business prospect. Journal of Engineering, Science and Technology (JESTEC). 13(6).
pp.1690-1699.
Zalaghi, H. and Khazaei, M., 2016. The role of deductive and inductive reasoning in accounting
research and standard setting. Asian Journal of Finance & Accounting, 8(1), pp.23-37.
Zhang, L.H., Li, T. and Fan, T.J., 2018. Radio-frequency identification (RFID) adoption with
inventory misplacement under retail competition. European Journal of Operational
Research. 270(3). pp.1028-1043.
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