Using RFID Technology in Supply Chain Management: A Case Study of Tesco

This report discusses the use of RFID technology in supply chain management, specifically in the case of Tesco. It covers the benefits of RFID technology, how it works, and its impact on supply chain management. The report also touches on the importance of information sharing and trust in supply chain relationships.

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DOCUMENT
IT-717447 TASK 2
SCORE
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IT-717447 TASK 2
Supply chain
Running head: Supply chain
Supply Chain
Student Name
University Name
Contents
Abstract 2
Introduction 2
RFID Technology 3
References 9
Abstract
Supply chain management (SCM) focuses on the product
and information flow between supply chain member
organizations. New mechanical advancements have
empowered Tesco to effectively utilize data in their
areas . These innovations help organize the administration
of inventory network exercises. Due to the increasing speed
of technology, the cost of information has dropped. In the
integrated supply chain model, the two-way arrows reflect
the adaptability of the reverse flow of material and
information feedback. Managers need to understand that
information technology is more than a computer. In
addition to computer data identification equipment, it also
includes communication technology, factory automation
and other hardware and services. This report includes the
use of IT technology in Tesco organization supply chain
management.
Introduction
Data is a key inventory network driver since it can go
about as cement, enabling different drivers to cooperate
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with the objective of making a total composed production
network. Data influences the supply to anchor obvious
to administrators. With permeability, chiefs can settle on
choices to enhance inventory network execution.
Managers of Tesco must know how to collect and analyze
information. This is the place data innovation becomes
possibly the most important factor because information
technology consists of software, hardware, and personnel
in the entire information system and is responsible for
collecting, analyzing, and executing information.
Therefore, organizations need to connect and be able to
share information in real time and in real time. Without IT
and tools for collaboration across the organization, this
cannot be achieved . Its most commonplace part in store
network administration is to diminish the usefulness of
exchanges between production network accomplices
through the practical data stream. IT is viewed as
supporting the coordination and organization of supply
chains through data sharing. It can be utilized for
decision help at Tesco. In this case, analytical capabilities
of the computers are used to help manage decisions.
RFID Technology
RFID technology enables Tesco to track packages using
amazing technology. Before analyzing the benefits, it is
important to understand how RFID works. RFID has
three key components: a scanning antenna, a transceiver
with a decoder, and a transponder. The scanning antenna
emits a short-range RF signal that tracks the object. When
the RFID tag passes through the antenna's field, it detects
the activation signal being sent from the antenna and
initiates the tracking process (Reimann &Ketchen, 2017).
This causes the RFID chip to be in an active mode, in
which it returns the signal. Dynamic RFID tags utilize
batteries to power microchip's circuitry as well as broadcast
signals to readers. However, a reader does not need to use
the battery.
Purpose of the technology
Bar code technology is one of the alike concepts
entrenched in the supply chain management. The Barcode
technology provides a parallel approach for how RFID can
benefit supply chain management of Tesco. In essence, the
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two are parallel and complement the convenience of supply
chain management. However, due to the scanning speed
and the best high noise immunity, the benefits of RFID
systems can be greatly extended. Because RFID is
based on RF waves, it can provide a more seamless
approach to future technologies. As handset operators
purchase LTE spectrum, manufacturers can monitor RFID
by touching buttons on personal devices. In the field of
retail goods, RFID uses a similar concept (Espejo 22). The
tag or the one of a kind handset with encoder is
implanted in a protest (HITT, 2011). Outstanding
amongst other things about RFID is that they needn't
bother with batteries and can be utilized longer. This
permits inventory network administration to genuinely
improve their store network .
RFID innovation has turned into a progressive component
of production network administration. It isn't only a
substitute for standardized identifications. RFID guarantees
that the correct products are accessible in the ideal place,
without any disparities and zero blunders. It influences the
supply chain more exact and expands the proficiency and
unwavering quality of the whole production network.
With the arrangement of continuous data, the
administration and arranging procedure can likewise be
altogether progressed . The usage of RFID innovation can
likewise expand Tesco's upsides of the circulation
procedure. The utilization of RFID will enormously
accelerate conveyance administration, increment
proficiency, and increment the exactness of choice and
dissemination forms. It will likewise diminish
dissemination costs. At the point when RFID-encoded
items enter the dispersion focus, RFID peruses at the
passageway can enroll RFID labels and send the data to the
back-end arrangement of the circulation focus. This data
can be utilized to put containers in the ideal place, sort
them rapidly and productively, and send containers to
retail focuses in less time and enhance precision. The
utilization of RFID likewise guarantees precise stock
control at Tesco (Subhash & Gayathri, 2016).
Cognitive hierarchy model
The production network considered here is a three-stage
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store network comprising providers, makers, and retailers.
Figure 2 demonstrates a subjective guide of an inventory
network with three outer states, three approach states, and
12 inward states. Note that the edges demonstrate causal
headings (Tachizawa& Wong, 2015). The inner state can be
seen through the RFID data framework. The "maker
stock level" is an inside state. The rise in "manufacturing
stock levels" points to the fact that the reduction in the
number of products that need to be produced leads to a
decline in "manufacturing productivity." From here, we can
see the impact on "work in process", "manufacturer's
inventory level" plus "productivity."
(Fig 1: RFID benefits (source: pages.wustl.edu))
(Figure 2: Cognitive hierarchy model (source:
pages.wustl.edu))
How data is used
The retail business utilizes RFID innovation as an
innovation that can roll out a genuine improvement to the
way retailers work together, because RFID can influence
each part of the store network. RFID has numerous points
of interest over standardized tags(LUSCH, 2011). The
principle preferences of RFID incorporate its remarkable
capacity to impart data to business accomplices, permitting
joint effort in stock administration, arranging, estimating
and recharging to call attention to that RFID can convey
numerous advantages to retailers, including: improving the
sales tier, planning needs Style, size and color, as well as
sales staff to provide customers with better customer
service, so as to save customers more time and reduce
inventory time. RFID systems can increase the
proficiency of store tasks by distinguishing and wiping out
non-esteem included exercises for exchanges. For instance,
a huge retail chain may fundamentally enhance its re-
racking by following things at various areas in its offices.
Overall, this study shows that the use of effective ERP in
SCM can improve the competitiveness of SCM and thus
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improve organizational performance. Specifically , the
results show that although effective RFID uses CRM
and SCM's exploration and development capabilities,
CSM's effective RFID use experiences better SCM
exploration capabilities and effective RFID use can achieve
better SCM development capabilities. The results also
show that while the ability to develop supply chain
management affects all three aspects of organizational
performance, supply chain management exploration
capabilities only affect market value, while organizations
that manage the balance of supply chain management
exploration and development capabilities outperform
competitors. Supply chain management exploratory and
development capabilities play a key role in maintaining
and improving the dynamic capabilities of supply chain
activities. Therefore, the effect of each SCM capability on
organizational performance should be assessed(Rho, 2014).
Although some earlier studies used dynamic capability
theory to study the duality of supply chains by exploring
the development of capabilities and exploitation
capabilities, they did not explore the direct impact of
exploration and exploitation capabilities and the impact of
the interaction between these capabilities on organizational
performance (Kumar, 2017). Therefore, the second gap in
the literature and the second research opportunity are here.
To study the direct influence of the supply chain
management competences on organizational performance
and the interaction between supply chain management
exploration capabilities and supply chain management
development competences on organizational
performance, we assume two separate research issues.
Therefore, organizations that adopt a structural dual
structure system use exploratory and exploitative activities
in two different sectors, each of which is specifically
allocated for exploration or mining. Therefore, this
dual unit structure helps organizations balance their
exploration and mining activities to achieve superior
organizational performance (Raki, 2014).
Factors influencing SC relationships
The Tesco's belief its supply chain partners is closely
related to both the exact asset investment and social
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exchange theory. Information sharing reduces major
impacts (improving partners' uncertainty behaviors, thereby
increasing trust) Trust is the main factor in advancing
inventory network accomplice responsibilities the presence
of trust fundamentally improves the probability of store
network accomplishment in exchange costs trading).The
absence of trust among inventory network accomplices
frequently brings about wasteful aspects and wasteful
aspects in accomplice confirmation, examination, and
affirmation. Despite the fact that the writing regularly
specifies the connection amongst trust and duty, it lacks the
relationship between supply and trust (Li & Li, 2011).
Conducting Empirical Testing Information sharing with the
help of RFID technology sometimes requires the
publication of protected financial plus other tactical
information to the partners that may and will become
competitors, in addition "effective information is
shared between the enterprise and the ultimate goal.
Reliance heavily on trust extends strictly to the supply
chain (Balocco, Miragliotta, Perego & Tumino, 2011). For
example, managers spend more time and effort on the
dealing with little trust relations than on dealing with
great trust relations.On the contrast, highly trusted
partnerships will be open to the public communication and
eagerness to go out on a limb. Individuals who confide
seeing someone is not hurt Share all the data and have faith
in the data they get. Moreover, notwithstanding sharing
data in high put stock seeing someone, they are all the
readier to go for broke . They likewise said that if you
diminish the issue of question , the general execution
would be fortified . It demonstrates that there is a
positive connection amongst advancement and
execution in the administration business, and
development can upgrade theTesco's upper hand in
business sectors where client inclinations are quickly
changing, with restricted separation, and in aggressive
markets. The appropriation of RFID innovation in the
coordination benefit process can likewise be viewed as a
mechanical development in the coordination business, so it
can be normal that there is a positive connection between
the selection of RFID innovation and the inventory
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network execution of coordination benefit providers.
Moreover, in light of the asset idea, innovation is the
venture. A vital asset for upper hand: TheTesco ought to
build up a reasonable system to activate assets to create
prevalent execution (Shaikh, 2014).
Conclusion
With the rapid growth of Tesco's economy, no one doubts
the impact on the worldwide supply chain system. The
Logistics service suppliers play asignificant role in the
supply chain. Though, Tesco is still in its beginningas
compared to its counterparts in other developed nations. To
improve supply chain services, Tesco began to adopt
innovative logistics technologies. Despite this, there are
many things that need to be learned in organizational
adoption of imaginative coordination advancements,
particularly RFID innovation as one of the creative
coordination advances. With a specific end goal to
compensate for the examination hole, this article looks at
the components that influence the utilization of RFID
innovation in the coordination business and the connection
between store network execution and the utilization of
RFID innovation.
References
Balocco, R., Miragliotta, G., Perego, A., & Tumino, A.
(2011). RFId adoption in the FMCG supply chain: an
interpretative framework. Supply Chain Management: An
International Journal, 16(5), 299-315. doi :
10.1108/13598541111155820
HITT, M. (2011). RELEVANCE OF STRATEGIC
MANAGEMENT THEORY AND RESEARCH FOR
SUPPLY CHAIN MANAGEMENT. Journal Of Supply
Chain Management, 47(1), 9-13.
Kumar, A. (2017). A Bibliometric Study on RFID and
Supply Chain Management. SSRN Electronic Journal.
doi : 10.2139/ssrn.2969899
LUSCH, R. (2011). REFRAMING SUPPLY CHAIN
MANAGEMENT: A SERVICE-DOMINANT LOGIC
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PERSPECTIVE. Journal Of Supply Chain Management,
47(1), 14-18.
Li, Y., & Li, H. (2011). Study on the Impacts of RFID
Technology in Supply Chain Management. Advanced
Materials Research, 271-273, 235-240. doi :
10.4028/www.scientific.net/amr.271-273.235
Raki, H. (2014). An application of RFID in supply chain
management to reduce inventory estimation error.
Uncertain Supply Chain Management, 2(2), 97-104. doi :
10.5267/j.uscm.2014.1.001
Reimann, F., &Ketchen, D. (2017). Power in Supply Chain
Management. Journal Of Supply Chain Management,
53(2), 3-9.
Rho, S. (2014). Analysis of RFID Standard Patent Data
for RFID Technology Trends. The Journal Of Korea
Navigation Institute, 18(2), 185-190.
Subhash, J., & Gayathri, S. (2016). Multipurpose Card
Using Rfid Technology. International Journal Of
Engineering And Computer Science.
Shaikh, A. (2014). The Role of RFID in Supply Chain
Management Macro Processes. International Journal Of
Innovation, Management And Technology. doi :
10.7763/ijimt.2014.v5.546
Tachizawa, E., & Wong, C. (2015). The Performance of
Green Supply Chain Management Governance
Mechanisms: A Supply Network and Complexity
Perspective. Journal Of Supply Chain Management, 51(3),
18-32.
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