Analyzing RFID's Impact on Supply Chain Management in Fashion Retail

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This report, submitted by a student, investigates the impact of Radio Frequency Identification (RFID) technology on supply chain management within the online clothing retail industry, specifically focusing on the UK market. The study begins with an introduction to the fashion industry's evolving landscape, highlighting the need for efficient supply chain management to adapt to changing trends and customer behaviors. It explores the rationale for RFID adoption, addressing the challenges of volatile markets and unpredictable demand. The report examines the concept of supply chain management, particularly in the fashion retail sector, and delves into RFID technology basics, its applications, and associated security and privacy considerations. The research methodology includes a mixed-methods approach, combining quantitative and qualitative data analysis to assess RFID's impact. The findings reveal insights into the benefits of RFID implementation, such as improved inventory management, streamlined processes, and enhanced customer satisfaction. Challenges and potential strategies for mitigating issues in the fashion retail industry are also discussed. The report concludes with recommendations for future work, emphasizing the importance of RFID in optimizing supply chain performance and adapting to the dynamic demands of the fashion industry.
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Running head: IMPACT OF RFID IN SUPPLY CHAIN MANAGEMENT IN ONLINE
CLOTHING RETAIL INDUSTRY
Impact of RFID in supply chain management in online clothing retail industry
Name of the Student
Name of the University
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Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.1 Background.......................................................................................................................5
1.2 Rationale...........................................................................................................................6
1.3 Problem statement.............................................................................................................7
1.4 Aim, objective and research questions..............................................................................8
1.5 Research structure.............................................................................................................9
Chapter 2: Literature Review.........................................................................................................12
2.1 Introduction..........................................................................................................................12
2.2 Concept of Supply chain management................................................................................12
2.3 Supply chain management in fashion retail industry...........................................................15
2.4 RFID Technology Basics.....................................................................................................17
2.4.1 Application of RFID.....................................................................................................19
2.4.2 RFID Security and Privacy...........................................................................................20
2.5 RFID and Retail Supply Chain............................................................................................21
2.6 Challenges of RFID in retail industry..................................................................................24
2.7 Benefits of RFID adoption in retailing................................................................................26
2.8 Summary..............................................................................................................................27
Chapter 3: Research Methodology................................................................................................28
3.1 Introduction..........................................................................................................................28
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3.2 Research philosophy............................................................................................................28
3.3 Research Approach..............................................................................................................30
3.4 Research Design..................................................................................................................31
3.5 Data Collection Method.......................................................................................................32
3.6 Sample Size.........................................................................................................................34
3.7 Data Analysis Method.........................................................................................................34
3.8 Ethical Consideration...........................................................................................................36
Chapter 4: Data Findings and Analysis.........................................................................................38
4.1 Quantitative Data Analysis..................................................................................................38
4.2 Qualitative Analysis.............................................................................................................52
Chapter 5: Conclusion and Recommendations..............................................................................57
5.1 Conclusion...........................................................................................................................57
5.2 Recommendations................................................................................................................58
5.3 Future Work.........................................................................................................................59
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Chapter 1: Introduction
1.1 Background
Fashion industry has been facing a lot of changes and advances in the market. Fashion trends
have been changing at rapid pace in the market. An efficient supply chain has been required for
the implementation of new trends in the fashion trends (Christopher 2016). However, there have
been various ups and downs in the market of the fashion industry. The UK fashion industry has
been facing a number in changes in the recent years. The economy of the country has been
fluctuating with the changes in the fashion industry. The modern retail industry has been affected
by the customer behavior. Therefore, in the volatile market and unpredictable demand of
customers regarding the fashion outfits have been leading it the adoption of proper supply chain
management system (Hugos 2018).
The implementation of Radio Frequency Identification (RFID) technology in the supply
chain in fashion retail industry. There have been enormous development in the supply chain
management and logistics in the market. Therefore, this has been becoming an important topic
for research. Various researchers have been identifying the impact of RFID on supply chain
management systems in fashion industry. The introduction of new technologies have been
claiming that it can help in improving supply chain performance in an organization. However
this research has been focused on the fashion industry in the UK (Monczka et al. 2015). The use
of RFID in the supply chain management system has been helping in maintaining keen approach
in the fashion industry. The purpose of the research has been focused on analyzing the
relationship between applications of RFID in fashion industry in the UK with relation to supply
chain management system. The benefits and limitation sf this collaboration has been mentioned
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in the research. The use of different approaches in order to complete the research have been
mentioned in the research.
1.2 Rationale
The UK retail fashion industry has been facing a lot of changes in the market. There have
been huge change in the demand of customers related to their fashion trends. Therefore,
companies have not been able to maintain keen approach in identifying the demand and
expectations of the customers. The use of the RFID has been helping in providing a proper
approach in maintain the expectation sift h customers in the market (Mangan, Lalwani and
Lalwani 2016). The implementation of RFID technology has been new in the market. Therefore,
there have been less knowledge and data related to the RFID technology in the market. The use
of the in the fashion industry might help in providing keen approach. The supply chain
management has been an important factor in satisfying customers in the market. The use of
supply chain management system helps in providing a keen approach. The UK supply chain
system has been exceed one billion dollar by 2017 (Fredendall and Hill 2016). This increase in
the economy has been due to the implementation of new technology including RFID technology
in the fashion retail industry.
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Figure 1: Economic outputs in fashion retail industry in the UK
(Source: Fahimnia, Sarkis and Davarzani 2015)
Supply chain management has been referring to managing of supply chain operations in an
organization or industry. Therefore, the supply chain management of fashion industry get
disturbed and interrupted. There have been lack in order delivery including raw materials and
stock in the warehouse of fashion companies.
1.3 Problem statement
Fashion industry has been facing many issues regarding changes in the behavior and demand
if the market. The life cycle of specific product has been short. Fashion products have a limited
time in the market as the fashion trend has been continually changing. The market has been
unpredictable and volatile in demand of customers. The purchasing behavior of customers keeps
on changing with time.
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Figure 2: Product lifecycle in the fashion industry compared to other markets
(Source:
According to the exploration done by Stadtler (2015), store network the board alludes to joint
effort of incorporated arranging, control and coordination over different procedures and
capacities in the production network. It has been helping in giving additional esteem included
administrations by limiting absolute expense of partners in inventory network. Production
network the board has been a progression of exercises and procedures that has been helping in
exchanging physical techniques along chain. Production network the board is a procedure
arranged methodology that has been centered on sourcing, creating and conveyance of
merchandise to clients. Supply can the executives is giving a basic job in the improvement of
association by expanding revenue in the market. Store network the executives is moving
towards key coordinated effort among provider and authorities. There have been rivalry included
on adaptability in time creation with less inventories. Be that as it may, there have been
increment in the consciousness of client, conveying free items and on-time conveyance (Heizer
et al. 2017). Effective Customer Response (ECR) and Customer Relationship Management
(CRM) is a significant purpose of store network the board. CRM has been pursuing for
expanding association with real clients for upgrading association with real clients with the
assistance of improving quality gave to clients. In this manner, for improving assets in business,
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the crude materials and precision of conveyance items have been kept up legitimately. The
production network the executives helps in giving business in an improved and synchronized
route for upgrading their business stage. According to different investigations, inventory network
the executives framework helps in giving additional esteem increased the value of included
administrations (Wang et al. 2016). This assistance in diminishing expense of all partners present
in store network and their monetary position in the market.
1.4 Aim, objective and research questions
The aim of research has been focused on identifying impact of RFID technology in Supply
chain management system of retail fashion industry in the UK. Supply Chain management has
been the integration of key processes of business from end user with the help of original
suppliers that have been providing products and services that might add value to customer and
stakeholders. Therefore, it can be referenced that supply chain management has been helping in
Following are objectives of the research:
To identify the issues faced by fashion retail industry in the UK
To identify the impact of RFID in Supply chain management system in fashion industry
of the UK
To recommend strategies for mitigating issues in the fashion retail industry related to
supply chain management system
Following are the research questions:
What issues are faced by fashion retail industry in the UK?
What is the impact of RFID in Supply chain management system in fashion industry of
the UK?
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What strategies can be recommended for mitigating issues in the fashion retail industry
related to supply chain management system?
1.5 Research structure
This research include five chapters including introduction, literature review, research
methodology, data findings and conclusion and recommendations. The first chapter has been
focused on the basic introduction of the research topic. The use of different concepts of the
fashion industry has been caused in the chapter. The aim of the research along with objectives
and research question shave been initiated in the chapter.
The second chapter deals with literature review in the research topic. Various journals and
theories have been studied for gaining knowledge about RFID in supply chain management
system in fashion retail industry. The use of RFID in supply chain management system has been
discussed in the chapter. Detailed concept of supply chain and RFID has been discussed in the
chapter.
The third chapter focuses on the research methodology of the study. The chapter consists
of various subsections including research philosophy, approach, design, data collection, data
analysis and ethical consideration. This chapter helps in providing outline of the study. Data
collection and analysis method has been proposed in this chapter.
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Figure 2: Research Structure
(Source: Created by author)
The fourth chapter deals with the data collection and analysis. Data has been collected
from both primary and secondary method. Data analysis has been done using mixed data analysis
method including both quantitative and qualitative method.
The last section is about concluding all the outcomes and results of the study. There have
been recommendations provided in the section that helps in conducting future work on the
research topic.
Chapter 1: Introduction
Chapter 2: Literature Review
Chapter 3: Research Methodology
Chapter 4: Data Findings and Analysis
Chapter 5: Conclusion and Recomendations
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Chapter 2: Literature Review
2.1 Introduction
Several studies have discovered the effective use of supply chain management for
efficient allocation and distribution. Many retail companies in the UK potentially encounter
various problems related to supply chain due to the lack of formal collaboration and transparent
communication between the supplier and retailer (Genovese et al. 2017). One of the most
common supply chain problems that UK companies suffer from is excess inventory and flaws in
supply chain distribution. Thus, several factors such as these create a dire need for a proper
integration in supply chain in order to provide a way for replenishing processes and supporting
collaborative forecasting with an aim to reduce the cycle time and inventory investments and at
the same time increase sales. In this context, Esposito et al. (2015) has suggested that RFID
(Radio Frequency Identification) is potentially useful to retail supply chain management. In other
words, RFID integration and collaboration with supply chain primaryly enables the retailers to
improve their business performance in an effective manner. According to Choi et al. (2015), the
adoption of RFID technology in supply chain management is one of the most challenging and
innovative idea in this modern era of constant technological evolution.
2.2 Concept of Supply chain management
As per the research done by Dubey et al. (2017), supply chain management refers to
collaboration of integrated planning, control and coordination over various processes and
functions in the supply chain. It has been helping in providing extra value added services by
minimizing total cost of stakeholders in supply chain. Supply chain management has been a
series of activities and processes that has been helping in transferring physical methods along
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chain. Supply chain management is a process oriented approach that has been focused on
sourcing, producing and delivery of goods to customers. Supply can management is providing a
critical role in the development of organization by increasing revenue in the market. Supply
chain management is moving towards strategic collaboration between supplier and officials.
There have been competition included on flexibility in time production with less inventories.
However, there have been increase in the awareness of customer, delivering free products and
on-time delivery.
Efficient Customer Response (ECR) and Customer Relationship Management (CRM) is
an important point of supply chain management. CRM has been trying for increasing relationship
with major customers for enhancing relationship with major customers with the help of
enhancing value provided to customers (Touboulic and Walker 2015). Therefore, for improving
resources in business, the raw materials and accuracy of delivery products have been maintained
properly. The supply chain management helps in providing business in an enhanced and
synchronized way for enhancing their business platform. As per various studies, supply chain
management system helps in providing extra value added services by providing extra value to
added services. This help in reducing cost of all stakeholders present in supply chain and their
financial position in the market. The basic concept of supply chain management have been
focused on providing organized sequence of operations and activities providing a proper
sequence of operations for facilitating production in the organization. As commented by Wang
and Cullinane (2015), supply chain has been focused on concept of process oriented approach
based on implementing manufacturing, sourcing, logistics and final delivery of products to
customers. The global business platforms have been affected by the supply chain management. It
has significant influence for increasing the work efficiency and growth in business. The supply
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chain management has been taking step for enhancing business in the industry. There has been
basic strategy for practicing supply chain management system. There have been unique set of
operational activities and value in the market that help various businesses in the supply chain
system and collect valuable data from the market. There have been mainly five aspects of the
supply chain management system that are mentioned below:
Manufacture: This aspect has been focused on the demands of product in the market and
productivity ratio of manufacture for that particular product. It has been monitoring various
aspects that are focused on quality control, requirement maintenance and structuring of
workflow. The primary section of business has been in every company that has been operating
successfully and providing business in the market (Jabbour and de Sousa Jabbour 2016). The
manufacturing part of company needs to be properly managed in the market as this help in
manufacturing products for the company.
Inventory: The inventory of an organization plays an important role in the development
of organization. It has been helping in deciding about actions taken in order to maintain a keen
approach in the development of organization. IT has been the current asset of an organization as
it take part in preparing balance sheet of the company (Brindley 2017). The inventory
management has been directly connected to the supply chain system of the company. Therefore,
there have been a keen approach in the development of the company in the market. A proper
inventory control helps in identifying stock management and demand of products in the market.
Information: This element of supply chain management helps in providing stakeholders
data regarding products for making best decision regarding data that need to be gathered. There
have been risks involved in supply chain management system including globalization.
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Globalization has been affecting the impact of supply chain management system in the
organization. Supply chin management system has been helping in making effective decisions in
the market. Data has been playing an important role in the making decision in the market
(Formentini and Taticchi 2016). This data can be analyzed properly before making effective
decision in the organization.
Transportation: During comparing the truck and air freight delivery along with rail and
sea transit has been visible and a significant difference between their price and demands.
Statistical data shows that companies have been making strategic changes in their price by
decreasing it and increasing service levels of customers. Transportation of products has been
affecting the price and demand of the products in the market (Rajeev et al. 2017). Late delivery
of products makes trouble situation for company to meet the demand of the customers in the
market.
Location: This element of has been helping in providing facilities to supply chain for
enhancing their production and inventory maintainable in the organization. This five aspects of
supply chain management has been defining the use of supply chain management in the market.
The use of different aspects of supply chain management has been helping in providing a proper
approach ti the development of the company in the market (Schönsleben 2016). Location has
been helpful for locating the geography of products during transportation procedure.
2.3 Supply chain management in fashion retail industry
Fashion industry has been defines a sector that has been continually changing with expectations
and demand of the customers in the market. Suppliers have been always under pressure of
providing raw and complete material to the fashion organizations. Therefore, supply chain plays
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a vital role in the fashion industry. The increase in supply chain delivery model has been helping
for few years in the retailers in the market. By 2020, fashion retailers will have proper
management system in the supply chain (Ross 2016). The leader retailers have been enhancing
the traditional method of supply chain management system. The fashion supply chain system has
been gaining importance in the recent years in the UK. The use of supply chain management
system has been helping in mitigating keen approach in providing better services and products in
the market. The dramatic changes in the power of buyer in the market, the companies have been
looking for sourcing and supply chain decisions have been increasing in recent years. This step
has been making this system a bit complex. Supplier firms have been facing several challenges in
order to maintain key relationship with the buyer and maintain competitive advantages. Channels
in the market need to be important that helps in maintaining a keen approach in the development
of the industry in the market. As argued by Meixell and Luoma (2015), fashion industry has
been facing a lot of challenges due to the change in customer demands and trends. Fashion
retailers haven’t been able to understand the market demands and needs of customers.
Therefore, companies need to focus in the supply of raw materials in the market. The supply
chain of the company need to be improved in the market that might help in maintaining a smart
approach in the market.
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Figure 3: Sustainable supply chain management in fashion industry
(Source: Cooper 2017)
The fashion industry has been providing various kind of fashion clothes in recent market.
Manufacturers have been producing garments for both local and export market at global level.
Therefore, supply chain management has been playing an important role in maintaining these
export and import of clothes and fashion trends in global markets. Supply chain management
systems help in gaining competitive advantage over competition. There are various benefits of
supply chain management in the fashion industry including creating flexibility in operation and
positive effect of mobility of resources (Kshetri 2018). It helps in minimizing total cost of owing
(TCO). There have been proper utilization of available resources. It helps in ensuring logistics
management in terms of raw materials sourcing and delivery of final products. Managers need to
manage orders and deadlines of orders. This help in maintaining a proper relationship with
customers in the market. Therefore, supply management has been helping in maintaining record
of stocks and raw materials in the fashion organizations.
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2.4 RFID Technology Basics
Radio Frequency Identification (RFID) primarly utilizes radio waves in order to transmit
the identity of an object, which in turn is represented by a unique serial identification number,
through wireless communication channels. It is possible to access the RFID data through human
body, clothing as well as non-metallic materials. According to Landmark and Sjobakk (2017),
the application of RFID mainly involves an automated identification tagging method dedicated to
retrieve and store data from RFID tags (Landmark and Sjobakk, 2017). These RFID tags
containing an antenna and a microchip are typically embedded onto the items. The use of RFID
readers with a remote device, microchip data and antenna, business processes are capable of
reading appropriate points via radio waves. As a result, it enables automatic identification of the
tagged item. According to Lei, Zhang and Zhou (2018), the basic of the RFID technology or the
RFID system typically consists of three main components or elements such as 1) a transceiver 2)
a coil or antenna and 3) a transponder (RF tag), which is programmed electronically with
uniquely identifiable information.
Figure 4: A basic RFID system
(Source: Majeed and Rupasinghe, 2017)
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The radio signals being transmitted through the RFID antennas are responsible for
activating the tag and thereby, enable reading and writing of the data. The RFID reader correctly
sends the radio waves or radio signals depending on its power output to a distant place. While the
RFID tag enters into the electromagnetic zone, it identifies the reader’s activation signal (Taylor,
2016). This data being transmitted may typically include important information regarding the
price, location, color of product, data of purchase, date of order and several other relevant
information about a particular product. The microchip is capable of reading more than 2
kilobytes of data, which is stored in the RFID tag.
Electronic Product Code (EPC): EPC is an important concept associated with the RFID
technology. According to Sawant et al. (2015), EPC came after barcodes with the sole objective
of tracking the chipped items and goods through RFID systems. To be more precise, EPC refers
to a set of unique letters and numbers, with three individual sets of partitions and a header. The
first partition denotes the manufacturer while the second partition represents the product. Finally,
the third partition is the unique serial number for identifying a particular product or item. An
RFID tag is primaryly fixed with the corresponding EPC so that the RFID tag can transmit the
EPC code at the time of scanning the RFID tag.
2.4.1 Application of RFID
Radio Frequency Identification (RFID) is useful in the identification, location and
monitoring of people, product and process (Xu and Zhao, 2016). The RFID technology can
solely take the responsibility of processing the entire supply chain related information cycle
using electronic databases. Some of the major applications of the RFID technology are
mentioned below:
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Manufacturing industry: Many manufacturing companies across the world widely use
and appreciate the utilizations of RFID systems.
Asset tracking: RFID systems are especially beneficial as a means for asset tracking for
stolen or lost assets.
Retailing industry: Customers primarly demand the right price, the right quality and
timely delivery of their orders. In the stock out situations, the customers automatically divert
towards the rival or competitor firms. Hence, if the companies need to avoid this difficulty, then
it is highly important for the retailers to enhance and strengthen the supply chain performance
and capabilities so that the business can achieve potential customer satisfaction (Thiesse and
Buckel, 2015). Thus, in order to serve this purpose, the majority of the giant global retailers such
as Metro, Tesco and Walmart are gradually moving towards the adoption of RFID technology in
their integration of the supply chain management processes.
Security and access control: RFID is an effective mechanism in terms of controlling
and managing access to specific areas and locations. The modern age of RFID enabled systems
has enabled the vendors to use high gain antennas that can read the RFID tags from a
significantly long distance.
Supply chain management: The application of RFID within the core supply chain
process of a company are becoming popular in a rapid manner. However, many companies are
adopting RFID outside their core supply chain in order to track people and processes of their
supply chain partners.
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2.4.2 RFID Security and Privacy
There are technical and privacy problems associated with the use of RFID systems.
According to Shin and Eksioglu (2015), RFID tags are basically ‘dumb’ devices as they are only
capable of listening and responding without recognizing where the signal is coming from or who
is sending the signal. In other words, potential vulnerability may be associated with unprotected
RFID tags and therefore, several security threats and breaches may occur including traffic
analysis, eavesdropping, denial of service (DoS) attacks and spoofing. According to Zhang, Li
and Fan (2018), the manufacturers may implement the RFID technology in various ways.
Therefore, sometimes when RFID devices stick to the internal network of the company, then the
company might be exposed to different security related problems or threats. Apart from that,
certain technical problems exist such as disturbance in reading the data due to frequent low
battery issue. Another technical issue can be potential signal collision of simultaneous signals
from multiple RFID readers tend to overlap (Xu and Zhao, 2016). Similarly, if two or more tags
are present at a comparatively smaller area, then tag collision can also occur.
Zhang et al. (2016) says that RFID tags do not have the ability to distinguish the
differences between multiple RFID readers. Moreover, it is possible to read RFID tags without
anybody knowing. RFID tags in long distance can also be read with the help of high gain
antennas. On the other hand, Rogers et al. (2015) suggested that even in the case of protected
RFID tags, tracking of predictable tags responses is easily possible with traffic analysis tools. To
be more precise, with proper correlation and analysis of this data, unauthorized persons can
easily know about financial transactions and social interactions. The integrity of RFID readers
can be highly questions as it is often the case when RFID installations are done without sufficient
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physical protection. Thus, unauthorized intruders can use hidden RFID readers in order to gain
access to confidential data transmitted by those readers.
According to Rizzi and Volpi (2017), the popularity of RFID tags has resulted in the
increased application of RFID systems in the manufacturing and retailing industries. This
widespread use of item level RFID tagging of retail products including electronics and clothing
companies has raised several public concerns regarding personal privacy. People are becoming
more and more concerned regarding the way their personal data is being used. Moreover,
significant skepticism among people started to arise regarding whether they are physically
tracked through RFID chips or whether they will be subjected to more amount of direct
marketing. By establishing a link between a person’s personal identity and his or her unique
RFID tag, it is possible to track and profile him or her without them knowing or without their
permission.
2.5 RFID and Retail Supply Chain
According to Sandberg and Jafari (2018), the contribution of RFID in supply chain
performance is primaryly undeniable. RFID technology is capable of managing the supply chain
process in an effective manner and as a result, helps the company to grow its business. A supply
chain is typically comprised of suppliers, manufacturers, transporters, warehouses, retailers,
distributors and customers. In a supply chain environment, RFID can potentially automate the
process of products and materials procurements of the distribution stores and centers. Therefore,
it effectively reduces the requirements of money, time as well as complexity. Rashid, Peig and
Pous (2015) says it is an highly effective solution to put RFID tags on products and items as it
becomes much more easier to track the product’s motion or movement starting from
manufacturer to the customers. According to Ravi and Aparna (2016), RFID technology has a
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promising future in an extended supply chain environment. The manufacturers can utilize RFID
for automated and detailed monitoring of individual parts as the particular item or product moves
through the facility.
On the other hand, RFID use by distributors helps in managing fleets and inventories in
an effective and efficient manner and as a result, the need for manually accomplishing these
tasks is entirely eliminated. Moreover, RFID adoption in supply chain can dramatically
accelerate certain supply chain processes and at the same time, effectively reduce shipping
errors. In this context, Leitz et al. (2018) specifies that retailers can utilize the benefits of RFID
an appropriately ensure the stocking levels by tracking the history and origin of products. RFID
tracking therefore effectively prevents the possibilities of misplacement or theft of goods, which
in turn automatically results in a speedy checkout lines.
Figure 5: RFID integration in retail supply chain
(Source: Bhattacharya and Wamba, 2018)
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Moreover, Choi et al. (2015) says that RFID adoption in retail supply chain primaryly
leas to better collaboration and reduced inventory among the various players in the supply chain
process. Cui et al. (2017) says it is an highly effective solution to put RFID tags on products and
items as it becomes much more easier to track the product’s motion or movement starting from
manufacturer to the customers. The majority of the giant retail companies are now utilizing the
potential of RFID systems in order to properly integrate their supply chain processes, people,
partners and products and at the same time, improve the overall efficiency and effectiveness in
terms of reduction in the rate of errors. This process in turn significantly cuts down the overall
cost of supply chain operations.
Retail industry can adopt the RFID tagging method in order to reduce the shrinkage as
well as ensure the availability of merchandise so that the customers can make their desired
purchases. However, the number of competitors in the market is rapidly growing and with that,
the retail companies are facing more pressure from their consumers. Therefore, the retailers are
jointly seeking a way to be able to properly streamline the supply chain operations and ultimately
ensure high inventory optimization (Ayers and Odegaard, 2017). In order to serve this purpose,
retailers are largely opting for the RFID adoption with a common aim to enhance the visibility
from manufacturer’s perspective across the entire supply chain, typically including the back
rooms, in-store, and shop floor to the exit doors. RFID in retailing mandates the compliance of
certain standards where attaching an RFID chip conforming a global standard (GSI EPC)
requires the tagging of each product so that it is uniquely identifiable across the retailer’s supply
chain and retail stores. The RFID chip may store information about the items including its size,
style, color and so on. RFID identifies unique SKU, which in turn allows adequate traceability.
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Improved traceability throughout the supply chain primaryly refers to a fully automated logistics
with minimum error and accurate stock control (i.e. minimal out of stocks).
2.6 Challenges of RFID in retail industry
Even if RFID promises significant positive changes in the retail supply chain
performance. However, the adoption of RFID in retailing still involves certain technical
constraints. Firstly, there is potential lack of standards in the implementation of RFID in retail
industries. Standards are yet to evolve fully and the price of RFID readers and tags are
comparatively higher (Hauser et al. 2017). In addition to that, few of the environments and tags
can result in problems in reading. The various challenges in RFID in retail supply chain are
discussed as follows:
Exponential rise in the volume of data: A basic RFID tag is capable of storing a few
kilobytes of information regarding the tagged item or object. However, tags are also able to store
much more data including ordering and pricing history, movement between different locations
and environmental conditions. In addition to that, a single RFID reader is potentially capable of
transmitting data from more than 800 tags within a couple of seconds (Fan et al. 2015).
Therefore, if an organization is willing to track a particular item across several checkpoints, it
can easily use RFID for generating 100 to 1000 times more volume of information as compared
to the traditional barcode system. For instance, Walmart is opting to generate more than seven
terabytes of data on a daily basis. This particular volume can primaryly overwhelm the data
warehouses.
Transparency and privacy: Even when a customer leaves a retail store, the RFID still
has the tracking capability if the tag is not removed. Therefore, even if RFID can efficiently
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control the inventory and supply chain operations, it raises potential ethical concerns related to
the privacy of the customers.
Integration and cost: RFID adoption primaryly requires extensive amount of time and
cost investments. There are numerous additional costs associated with the implementation of
RFID across retail supply chain. For instance, Wi-Fi needs to be installed for ensuring seamless
experience. Multiple RFID scanners are required, which might range from 3000 to 20,000 dollars
(Fernie and Sparks, 2018). Apart from the hardware requirements and prerequisites, the retail
industries need to take into consideration of the potential changes in the supply chain processes
and operations, which might range from training to staff requisitions.
Security concerns: The RFID implementation yields customer enhancing experiences
even though the security remains one of the major concerns among the retail professionals.
However, it is significantly easier to clone RFID tags, more specifically if the RFID chip does
not have any authentication mechanism.
2.7 Benefits of RFID adoption in retailing
There are several benefits of adopting RFID in the retail industry in order to optimize the
supply chain management. According to Huang et al. (2018), RFID primaryly automates the
supply chain operations to an unprecedented level. As a result, it effectively leads to a number of
advantages. These advantages are discussed below:
Labor reduction: Due to the automation of several supply chain operations, RFID leads
to potential reduction in the labor requirements of the company. One of the potential cost
component associated with the distribution centers is no doubt related to labor. To be more
precise, the cost for labor approximately account for around 60 to 80 % of the total distribution
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costs. In this context, Hewett, Automaton Inc, (2015) has suggested that RFID adoption can
allow up to 39 % labor savings in the picking of orders. In addition to that, 90 % reduction is
possible associated with the shipping processes and verification costs. The retailers are willing to
utilize the benefits of RFID implementation in order to remove a large labor component, which
was previously required for managing the in-store stocks.
Enhanced visibility: The RFID technology in retailing primaryly yields greater visibility
to all the stakeholders associated with the supply chain process. According to Reyes, Li and
Visich (2016), the retail industry in the United States is on the verge of losing around 70 billion
dollars in an annual basis from its supply chain management (SCM) practices. In this context,
Zhang, Li and Fan (2018) specified that this loss most commonly results from a particular item
not available on the retail shelf for the consumers to purchase. Therefore, RFID can offer the
much required visibility in order to reduce this potential loss and by means of waste reduction,
improvement of safety policies and lowering of the inventory levels. Thus, inventory visibility
can primaryly achieve higher gains in areas that require faster response to the customers.
Reduced checkout lines: The implementation of RFID tags and readers in retail stores
can effectively reduce the wait times at the checkout counters. In this context, Lei, Zhang and
Zhou (2018) has suggested that the traditional bar code technology requires a particular line of
sight in order to be able to provision the scanning process. In other words, each product or item
is required to be scanned individually. On the contrary, RFID implementation can enable the
scanning of an entire shopping cart simultaneously or all at once on an instant basis while no
item will be removed from the cart. As a result, RFID ensures a time saving approach to
streamline the checkout, inventory and streamlining processes.
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2.8 Summary
The huge popularity of RFID tags has resulted in the increased application of RFID
systems in the manufacturing and retailing industries. This widespread use of item level RFID
tagging of retail products including electronics and clothing companies has raised several public
concerns regarding personal privacy. This data being transmitted through the RFID readers may
typically include important information regarding the price, location, color of product, data of
purchase, date of order and several other relevant information about a particular product or item.
The microchip is capable of reading more than 2 kilobytes of data, which is stored in the RFID
tag. The application of RFID within the core supply chain process of a company are becoming
popular in a rapid manner. However, many companies are adopting RFID outside their core
supply chain in order to track people and processes of their supply chain partners. Hence, the
adoption of RFID technology in supply chain management is one of the most challenging and
innovative idea in this modern era of constant technological evolution.
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Chapter 3: Research Methodology
3.1 Introduction
Research methodology has been helping in giving appropriate approach that are required for
accomplishing genuine research conduction. The thoughts made from research theories have
been helping in keeping up a sharp approach for passing on authentic research consider. An
unequivocal rationality ought to be sought after for getting real outcomes and results from the
research. As such, for fulfilling these requirements in the investigation, an authentic rationality
ought to be followed in the research. The exploration system contains a couple of sub fragments
including research reasonability, approach, structure, data aggregation, test measure, data
research and good idea.
3.2 Research philosophy
Research philosophy has been giving idea by which data and information ought to be
assembled and separated. The research objectivity has been a wellspring of data improvement
that perceives framework for data assembling in the investigation. Research levelheadedness has
been an import some bit of the exploration that urges analyst to pick about strategy ought to be
picked in order to find answers to investigate questions. There have been three research
philosophy including positivism, Realism and interpretivism. These investigation hypotheses has
been reached out from thought of epistemology. The term epistemology has been delineating
attractive data for a particular region. The positivism investigate speculation tends to the research
works that depend upon conspicuous social part. In positivism examine procedure, the research
strategy picked for the investigation is on a very basic level built up on information gathering
method and movement of theory tolerating any. A positivist researcher in that capacity looks for
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after a primarily made research framework for engaging the research question and the
investigation theory. What's more, the utilization of positivism reasonability in a research wears
out quantifiable perceptions and regularly regulates quantifiable research of the aggregated
information (Al 2013). Thusly, on picking positivism explore rational soundness, the research
her can no chance control any information amidst information gathering process.
Authenticity is another exploration theory that depends upon philosophyal enquiry. The
primary part of Realism believing is to discover and reveal truth of quintessence of objects of an
research (Brown and Stowers 2013). Authenticity focuses reasonability is moreover mentioned
in another two portrayals which are speedy Realism and primary Realism.
3.2.1. Support for picking Positivism Philosophy
The researcher has discovered that positivism theory will fit for reviewing the upsides of
timber and stone work (Leedy and Ormrod 2013). The research has not utilized Realism or
interpretivism approach since the investigation is obliged to research and research of gathered
information and does not would like to pass on any new course of action of information or
thought. Thusly the decision of positivism investigate reasonability apparently is fitting for this
exploration.
3.3 Research Approach
To sort out the research as indicated by the game-plan, it is primary for researcher to pick
a specific strategy for the investigation. Research approach gives the subtleties of plan and
frameworks that include certain wide suppositions adjacent unequivocal information gathering
process an investigation (Mitchell and Jolley 2013). There are in a general sense three research
approaches that can be utilized for instructive research. The deductive research approach
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manages the destruction of a huge amount of theories that are either should have been admitted
or rejected in the sythesis. As such the decision of deductive research approach stimulates the
analyst in arranging the investigation in a genuine manner (Novikov and Novikov 2013). The
proposition that depend upon deductive methodology are basically settled on theory, speculation,
acknowledgment and affirmation or ejection of a specific thought. Decision rather than the
deductive method, the inductive research approach excludes the significance of speculations
(Salaberry and Comajoan 2013). Inductive research is fittingly utilized in research considers that
are, so to speak, subject to investigate objectives and the perceived research questions. Thusly
the strategies attracted with inductive research approach unite, thought of various theories and
thought identified with an investigation domain, planning tests for data collection, and perceiving
affirmation of models in assembled information. Abductive research approach obviously
enlightens certain insufficient acknowledgments and dumbfounding substances related with a
specific research. Along these lines this kind of research approach spins around discovering
answers for the game-plans of certain deficient tests and staggering substances. For this specific
research an inductive research approach is picked. Since the exploration did not depend upon
speculation, deductive research approach isn't picked.
3.3.1. Support for picking Inductive Approach
This research has used deductive approach as it focuses on the research objectives and questions.
3.4 Research Design
There are commonly three research structures that are utilized for adroit analysts. These
are helpful research plan, clear research structure and explorative research plan. The exploratory
research design reviews the varying bits of an research think about dependent on the district of
the exploration. This sort of research is primarily determined for issues that have not been
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centered much more undeniably in past and along these lines, it infers being made of
prerequisites even more obviously. The informative research then again can be depicted as an
endeavor to relate the insights for understanding the investigation issue that has been perceived.
Obvious research obviously can be delineated as an research framework that bases on "what" of
the investigation subject.
The researcher has settled on a practical research plan for investigating the advantages of
timber and stone work. The going with an area of this territory gives the assurance against the
decision of that research plan.
3.4.1. Avocation for picking Descriptive research structure
The decision of realistic research design supposedly is proper in this setting primaryly in
light of the way that it goes about as an informative contraption for the researcher to investigate
the apparent research issue. With the assistance of clearing up investigation plan, the researcher
had the capacity to get ready for the information collection and precise research of the amassed
information. In like way, the decision of this investigation design apparently is suitable.
3.5 Data Collection Method
For discovering answers to the apparent research questions, it is primary to figure a real
information gathering process. This investigation that is attempted is a data based research and
all things considered it is primary for the researcher to gather at any rate much data as could
reasonably be required to see and value of RFID in clothing retail industry. The going with
segment of the investigation report gives a thought of the data gathering system that is followed
in this exploration.
3.5.1. Gathering of Data gathering Methodology
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The information gathering process related with any research falls under two standard classes,
which are primary information aggregation framework and discretionary information gathering
strategy (Brannen 2017). The information gathering methodology is sub mentioned in this two
procedures subject to the system for data getting.
Primary Data Collection: Primary data aggregation infers the strategy for data gathering from
those sources that have a firsthand information about the research that is being driven (Bernard
2017). There are various techniques that can be utilized for get-together and social occasion of
primary information. These join, holding meeting, perceptions and utilizing study to perform
reviews. This wellsprings of data is suggested as primary sources overwhelmingly in light of the
manner in which that it will all in all be enough coordinated. Get-togethers for primary
information party can be performed eye to eye or can be performed on telephonic way (Punch
2013). The most thoroughly utilized framework for primary information gathering wires
amassing of information from reviews and social events.
Secondary Data Collection: The discretionary data gathering process is a system for data
amassing from the sources that have been starting late passed on, for example, books, diaries and
research papers. Therefore from the optional sources a great deal of data can be amassed
(Brannen 2017). In any case, the data that are picked up from the discretionary sources are solid
yet can't be conveyed as stand-out. The optional information amassing process typically ends up
valuable for a researcher by and large since it helps in get-together of huge extent of information
that are significant and bona fide.
Sometimes the researcher utilize both primary information and optional information as the
information aggregation framework with a point of get-together of information from both
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primary and optional sources. This kind of research strategy is called blended research
methodology.
Picked Data Collection Method
The information gathering approach that is picked for this investigation is both primary
and secondary information accumulation strategy. The researcher has played out a get-together
to aggregate information that would react to the investigation questions. The whole research has
been liable to the data that could be accumulated from the social affair. The reaction of the
respondents helped in sorting out the investigation towards fruition. After sensible information
gathering it is primary to pick precise information inspect process that will help in finding the
responses for the perceived research questions.
3.6 Sample Size
Information has been gathered from both primary and optional information accumulation
strategy. Online survey has been conducted with 100 employees of Fashion Company in the UK.
There are 10 close-ended questions included in survey questionnaire. Review structure has been
readied utilizing Google frames and transferred on the web. The example estimate for meeting
process have been finished with three chiefs of SMEs. There have been three open finished
inquiries posed amid the meeting. Their reactions have been gathered as information for the
research.
3.7 Data Analysis Method
Information research in research is fundamentally of two sorts, abstract information ask
about and quantitative information investigate (Silverman 2016). Abstract information explore is
inquire about the information that can't be surveyed. Emotional information research looks for
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after a degree of strategy and strategies and depends after get-together of s as indicated by the
specific properties and characteristics (Marczyk, DeMatteo and Festinger 2017). In abstract
information investigate is collected in practically nothing and unrepresentative models in an
unstructured manner (Flick 2015). The abstract information inspect technique is exploratory and
the disclosures of emotional research are express to the subject that is being considered. For
information collecting in abstract research, analysts everything considered make open finished
solicitation. In this investigation, the researcher has driven social event to aggregate information
identified with impact of versatile working in UK section.
Thusly, abstract information look into is a hypothetical research that is logically worried over the
non-quantifiable information. This sort of information research is in a general sense tried in gets
some information about that manage the course toward understanding the event of various
marvel. In abstract information ask about, the model check is near nothing and non-
administrator.
Quantitative Data Analysis is mainly worried over the research of quantitative information. It is a
target research that evaluates information. The research is for the most part worried over the
system by which certain wonder happens (Walter and Andersen 2013). Thusly, in quantitative
information investigate system the point of reference measure is regularly impressive and is a
significant part of the time summed up to cover the whole individuals. Quantitative information
research routinely supervises testing the perceived hypotheses that will give future gauge.
Regardless, the quantitative research is confined by strategy of guidelines or numbers and
subsequently this approach is wide gone and as frequently as conceivable multi faceted (Noble
and Smith 2015). In addition, there are sure prerequisites related with the quantitative
information ask about (Neuman 2013). For instance, quantitative information investigate
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methodology can't be utilized for summing up the majority. The emotional research everything
considered game-plans with close finished solicitation and the amassed information experiences
genuine research, for example, lose the faith, SPSS and others.
The right information examine method is singled out reason of the necessities of the
investigation contemplate. This undertaking centers in finding impact of versatile working in UK
part. In that capacity the researcher has picked an exploration framework, which can be on an
exceptionally primary dimension utilized for discovering answers to the perceived research
questions.
3.7.1. The Chosen Method: Quantitative
The researcher has picked quantitative technique for data collection. Online audit has been done
in the investigation with the help of individuals. Survey have been made using google frames and
exchanged over the web.
3.8 Ethical Consideration
Any philosophical research is associated with a lot of good concludes that are set up by
instructive chambers. Before the research, each scholarly establishments request the adherence to
certain essential rules which are as per the going with
1. While driving the exploration review, it is basic to regard the security and insurance of
research people.
2. It is the dedication of the analyst and the investigation people to keep up the security of the
data shared till the research is finished.
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3. It is significant to get consent from the people before continuing with the information
gathering outlines.
4. The researchers ought to be able to guarantee and keep up obscurity in information get-
together and information look into procedure.
5. Keeping up the straightforwardness in information aggregation process is a central smart
thought in instructive research. Subsequently misquoting the data that is shared by the people
ought to be totally disallowed.
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Chapter 4: Data Findings and Analysis
4.1 Quantitative Data Analysis
Quantitative data analysis has been focused on the data collection from primary data collection
method. Online survey has been conducted with 100 employees of Fashion Company in the UK.
There are 10 close-ended questions included in survey questionnaire.
Question 1: Please specify your gender
Options Responses Responses % Total Responses
Male 72 72% 100
Female 28 28% 100
Figure 4.1.1: Please specify your gender
Analysis: According to the table and graph, 72 % of the participants are male and 28 % of the
participants are female. It can be analysed that most of the employees in the company are male.
Question 2: What is your Age?
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Options Responses Responses% Total Responses
Below 20 years 16 16 % 100
21-30 years 27 27 % 100
31-40 years 17 17 % 100
41-50 years 26 26 % 100
Above 51 years 14 14 % 100
Figure 4.1.2: What is your Age?
Analysis: As per graph and table, 27 % of the participants are of age between 21-30 years. 26 %
of the participants have age between 41-50 years of age. Therefore, it has been analysed that
employees are both fresher and experienced in the company. This help in maintaining tasks in
the business operation.
Question 3: For how many years you are working in the company?
Options Responses Responses% Total Responses
0-2 years 16 16 % 100
3-5 years 27 27 % 100
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6-8 years 17 17 % 100
9-11 years 26 26 % 100
Above 12 years 14 14 % 100
Figure 4.1.3: For how many years you are working in the company?
Analysis: According to graph and table, 25 % of the employees have been working for 3-5 years
in the company. 27 % of the employees are working for 9-11 years in the company. Therefore,
there are more experienced employees than new employees. This help in reducing work pressure
from the new employees as they get proper guidance from senior employees.
Question 4: Which of the following descriptions best fits your business?
Options Responses Responses% Total Responses
Retailer - physical
store(s) with online
sales
12 12 % 100
Retailer - online sales
only
30 30 % 100
Distributor /
Wholesaler
25 25 % 100
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Manufacture 18 18 % 100
Designer 15 15 % 100
Figure 4.1.4: Which of the following descriptions best fits your business?
Analysis: According to graph and chart, 30 % of the participants answered that their company
work as retailer online sales only. 25 % of the participants think that their company is a
distributor of fashion products in the market.
Question 5: Do you need to meet specific requirements from certain retail customers to
label or tag your products?
Options Responses Responses% Total Responses
Yes 45 45 % 100
No 55 55 % 100
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Figure 4.1.5: Do you need to meet specific requirements from certain retail customers to
label or tag your products?
Analysis: According to graph and chart, 55 % of the participants think that they do not need to
meet specific requirements from certain retail customers to label or tag your products. However,
45 % of the participants think that they need to meet specific requirements from certain retail
customers to label or tag your products. Radio Frequency Identification (RFID) basically uses
radio waves so as to transmit the personality of an article, which thusly is spoken to by a one of a
kind sequential distinguishing proof number, through remote correspondence channels. It is
conceivable to get to the RFID information through human body, apparel just as non-metallic
materials. The utilization of RFID for the most part includes a robotized distinguishing proof
labeling technique devoted to recover and store information from RFID labels. These RFID
labels containing a recieving wire and a microchip are commonly implanted onto the things. The
utilization of RFID perusers with a remote gadget, microchip information and recieving wire,
business forms are equipped for perusing suitable focuses through radio waves. Accordingly, it
empowers programmed ID of the labeled thing. The fundamental of the RFID innovation or the
RFID framework regularly comprises of three principle parts or components, for example, 1) a
handset 2) a curl or radio wire and 3) a transponder (RF tag), which is customized electronically
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with particularly recognizable data. The usage of RFID labels and perusers in retail locations can
adequately lessen the hold up times at the checkout counters. In this unique situation, Lei, Zhang
and Zhou (2018) has recommended that the customary standardized tag innovation requires a
specific observable pathway so as to have the capacity to arrangement the checking procedure.
At the end of the day, every item or thing is required to be checked exclusively. Despite what
might be expected, RFID execution can empower the filtering of a whole shopping basket all the
while or at the same time on a moment premise while no thing will be expelled from the truck.
Thus, RFID guarantees an efficient way to deal with streamline the checkout, stock and
streamlining forms.
Question 6: Have any of your retail customers already requested, or enquired about, the
supply of goods tagged with RFID labels?
Options Responses Responses % Total responses
Yes 43 43 % 100
No 57 57 % 100
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Figure 4.1.6: Have any of your retail customers already requested, or enquired about, the
supply of goods tagged with RFID labels?
Analysis: As mentioned in graph and table, 43 % of the employees have agreed that many retail
customers have enquired about supply of goods tagged with RFID labels. However, 57 % if the
employees have disagreed that many retail customers have enquired about supply of goods
tagged with RFID labels. The radio sign being transmitted through the RFID recieving wires are
in charge of enacting the tag and along these lines, empower perusing and composing of the
information. The RFID peruser accurately sends the radio waves or radio sign contingent upon
its capacity yield to a removed spot. While the RFID label goes into the electromagnetic zone, it
recognizes the peruser's initiation signal. This information being transmitted may regularly
incorporate significant data with respect to the value, area, shade of item, information of
procurement, date of request and a few other applicable data about a specific item. The
microchip is fit for perusing multiple kilobytes of information, which is put away in the RFID
tag. There are a few advantages of receiving RFID in the retail business so as to streamline the
production network the board. As per Huang et al. (2018), RFID basically mechanizes the
inventory network tasks to a phenomenal dimension. Thus, it successfully prompts various
preferences. These preferences are talked about underneath.Due to the mechanization of a few
store network activities, RFID prompts potential decrease in the work necessities of the
organization. One of the potential cost segment related with the circulation focuses is no
uncertainty identified with work. To be progressively exact, the expense for work roughly
represent around 60 to 80 % of the all out appropriation costs. In this specific situation, Hewett,
Automaton Inc, (2015) has recommended that RFID reception can permit up to 39 % work funds
in the picking of requests. Notwithstanding that, 90 % decrease is conceivable related with the
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transportation procedures and confirmation costs. The retailers are happy to use the advantages
of RFID execution so as to expel an expansive work segment, which was recently required for
dealing with the in-store stocks.
The RFID innovation in retailing basically yields more prominent perceivability to every one of
the partners related with the production network process. As per Reyes, Li and Visich (2016), the
retail business in the United States is very nearly losing around 70 billion dollars in a yearly
premise from its production network the board (SCM) rehearses. In this unique situation, Zhang,
Li and Fan (2018) indicated that this misfortune most regularly results from a specific thing not
accessible on the retail rack for the shoppers to buy. CRM has been pursuing for expanding
association with real clients for upgrading association with real clients with the assistance of
improving quality gave to clients. In this manner, for improving assets in business, the crude
materials and precision of conveyance items have been kept up legitimately. The production
network the executives helps in giving business in an improved and synchronized route for
upgrading their business stage. According to different investigations, inventory network the
executives framework helps in giving additional esteem increased the value of included
administrations (Wang et al. 2016). This assistance in diminishing expense of all partners present
in store network and their monetary position in the market. In this way, RFID can offer the much
required perceivability so as to decrease this potential misfortune and by methods for waste
decrease, improvement of wellbeing approaches and bringing down of the stock dimensions. In
this way, stock perceivability can basically accomplish higher gains in territories that require
quicker reaction to the clients.
Question 7: We would like to understand a little about your short-to-medium term IT
investment plans. Are you currently considering any of the following?
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Options Responses Responses% Total Responses
Inventory
management solution
17 17 % 100
Barcode scanning in
the warehouse
33 33 % 100
Applying barcode
labels to products
22 22 % 100
Setting up an online
store
15 15 % 100
Selling on Amazon,
ebay or similar
13 13 % 100
Figure 4.1.7: We would like to understand a little about your short-to-medium term IT
investment plans. Are you currently considering any of the following?
Analysis: According to the graph and table, 33 % of the participants have understand a little
about short to medium term IT investment plans has been barcode scanning in the warehouse.
22% of the participants have been applying barcode labels to products. Clients basically request
the correct value, the correct quality and opportune conveyance of their requests. In the stock out
circumstances, the clients naturally redirect towards the adversary or contender firms. Thus, in
the event that the organizations need to stay away from this trouble, at that point it is profoundly
significant for the retailers to improve and fortify the store network execution and capacities with
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the goal that the business can accomplish potential consumer loyalty (Thiesse and Buckel, 2015).
Along these lines, so as to fill this need, most of the goliath worldwide retailers, for example,
Metro, Tesco and Walmart are slowly moving towards the selection of RFID innovation in their
mix of the production network the executives forms.
Question 8: What challenges have you faced in offering product for sale online?
Options Responses Responses% Total Responses
Lack of eCommerce
expertise
24 24 % 100
Getting high quality
images
24 24 % 100
Gathering all the
required product
information
23 23 % 100
Time and financial
resources
17 17 % 100
Meeting retail
customer
requirements /
specifications
12 12 % 100
Figure 4.1.8: What challenges have you faced in offering product for sale online?
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Analysis: As per table and charts, 24 % of the participants have not getting high quality images
over online portal of companies. There has been problem related to e-commerce expertise in the
company. This has become a serious issue as there have been no expert in the company during
any issues with e-commerce website. RFID is a successful instrument as far as controlling and
overseeing access to explicit regions and areas. The cutting edge period of RFID empowered
frameworks has empowered the sellers to utilize high addition radio wires that can peruse the
RFID labels from an altogether long separation. The use of RFID inside the center production
network procedure of an organization are getting to be famous in a fast way. In any case,
numerous organizations are receiving RFID outside their center inventory network so as to
follow individuals and procedures of their production network accomplices. There are
specialized and protection issues related with the utilization of RFID frameworks. As indicated
by Shin and Eksioglu (2015), RFID labels are fundamentally 'idiotic' gadgets as they are just
equipped for tuning in and reacting without perceiving where the sign is coming from or who is
sending the sign. As it were, potential powerlessness might be related with unprotected RFID
labels and subsequently, a few security dangers and ruptures may happen including traffic
investigation, listening stealthily, forswearing of administration (DoS) assaults and caricaturing.
As indicated by Zhang, Li and Fan (2018), the producers may execute the RFID innovation in
different ways. Subsequently, in some cases when RFID gadgets adhere to the interior system of
the organization, at that point the organization may be presented to various security related issues
or dangers. Aside from that, specific specialized issues exist, for example, unsettling influence in
perusing the information because of incessant low battery issue. Another specialized issue can be
potential sign impact of synchronous sign from different RFID perusers will in general cover (Xu
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and Zhao, 2016). Primaryly, on the off chance that at least two labels are available at a relatively
littler territory, at that point label impact can likewise happen.
Question 9: Are you aware of what RFID technology is?
Options Responses Responses % Total responses
Yes 41 41 % 100
No 59 59 % 100
Figure 4.1.9: Are you aware of what RFID technology is?
Analysis: As per graph and table, 59 % of the participants are no aware of the RFID technology.
Only 41 % of the participants have knowledge about RFID technology. Zhang et al. (2016) says
that RFID labels don't be able to recognize the contrasts between numerous RFID perusers.
Besides, it is conceivable to peruse RFID labels without anyone knowing. RFID labels in long
separation can likewise be perused with the assistance of high increase recieving wires. Then
again, Rogers et al. (2015) recommended that even on account of ensured RFID labels, following
of unsurprising labels reactions is effectively conceivable with traffic investigation instruments.
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To be progressively exact, with appropriate connection and research of this information,
unapproved people can without much of a stretch think about money related exchanges and
social cooperations. The uprightness of RFID perusers can be very inquiries as usually the
situation when RFID establishments are managed without adequate physical security. In this
manner, unapproved gatecrashers can utilize concealed RFID perusers so as to access private
information transmitted by those perusers.
Question 10: There are a number of business drivers for the use RFID technology in the
clothing sector. Which of the following do you feel would offer the greatest benefit to your
business in the short term?
Options Responses Responses% Total Responses
Accurate stock
visibility on the
shopfloor
26 26 100
Enhanced visibility of
inventory across the
supply chain
26 26 100
Electronic Article
Surveillance(security
tagging)
18 18 100
None of the above 15 15 100
All of the above 15 15 100
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Figure 4.1.10: There are a number of business drivers for the use RFID technology in the
clothing sector. Which of the following do you feel would offer the greatest benefit to your
business in the short term?
Analysis: According to table and chart, 26 % of the participants have believed that enhanced
visibility of inventory across the supply chain has been the main benefit of the RFID. An
accurate stock visibility on the shop floor has been another benefit of using RFID technology.
As indicated by Rizzi and Volpi (2017), the notoriety of RFID labels has brought about the
expanded use of RFID frameworks in the assembling and retailing businesses. This far reaching
utilization of thing level RFID labeling of retail items including gadgets and apparel
organizations has raised a few open concerns in regards to individual protection. Individuals are
ending up increasingly more concerned in regards to the manner in which their own information
is being utilized. In addition, noteworthy doubt among individuals began to emerge in regards to
whether they are physically followed through RFID chips or whether they will be exposed to
more measure of direct promoting. By setting up a connection between an individual's close to
home personality and his or her one of a kind RFID tag, it is conceivable to track and profile that
person without them knowing or without their authorization. As indicated by Sandberg and Jafari
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(2018), the commitment of RFID in inventory network execution is basically irrefutable. RFID
innovation is equipped for dealing with the production network process in a powerful way and
accordingly, encourages the organization to develop its business. A production network is
regularly involved providers, makers, transporters, stockrooms, retailers, merchants and clients.
In an inventory network condition, RFID can possibly computerize the procedure of items and
materials obtainments of the conveyance stores and focuses. In this way, it successfully
diminishes the prerequisites of cash, time just as multifaceted nature. Rashid, Peig and Pous
(2015) says it is a profoundly compelling answer for put RFID labels on items and things as it
turns out to be considerably more simpler to follow the item's movement or development
beginning from maker to the clients. As indicated by Ravi and Aparna (2016), RFID innovation
has a promising future in an all-inclusive store network condition. The makers can use RFID for
robotized and point by point checking of individual parts as the specific thing or item travels
through the office.
4.2 Qualitative Analysis
Qualitative analysis deals with the data collection from secondary source of data collection.
There has been face-to-face interview done with three managers of fashion companies in the UK.
There are three open-ended questions asked during the interview. Data gathered from the
interview has been mentioned below:
Question 1: What is the current state of supply chain in your company?
1st manager 2nd manager 3rd manager
“According to me, there have
been degradation in the
“I think that there has been
moderate state of supply
“According to me, our
company have a positive
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quality of supply chain
management system in our
company.”
chain management system in
the company.”
level of supply chain
management system in the
market.”
Analysis: As per the first manager, the company has been facing degradation in the supply chain
management of the company in the market. The second manager believe that there have been
moderate state of supply chain management system According to third manager, there have been
no challenges faced by their company in regards with supply chain management. Then again,
RFID use by wholesalers helps in overseeing armadas and inventories in a successful and
productive way and therefore, the requirement for physically achieving these assignments is
completely disposed of. In addition, RFID appropriation in store network can significantly
quicken certain inventory network forms and in the meantime, adequately diminish shipping
mistakes. In this specific situation, Leitz et al. (2018) determines that retailers can use the
advantages of RFID a properly guarantee the stocking levels by following the history and
inception of items. RFID following in this manner successfully avoids the potential outcomes of
scattering or burglary of merchandise, which thus naturally results in a fast checkout lines. Even
when a client leaves a retail location, the RFID still has the following capacity if the tag isn't
evacuated. In this manner, regardless of whether RFID can proficiently control the stock and
production network tasks, it raises potential moral concerns identified with the security of the
clients. RFID appropriation basically requires broad measure of time and cost speculations.
There are various extra expenses related with the usage of RFID crosswise over retail store
network. For example, Wi-Fi should be introduced for guaranteeing consistent experience.
Numerous RFID scanners are required, which may extend from 3000 to 20,000 dollars (Fernie
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and Sparks, 2018). Aside from the equipment necessities and primarys, the retail enterprises need
to think about of the potential changes in the store network procedures and tasks, which may go
from preparing to staff orders.
Question 2: How RFID have helped your company in gaining competitive advantage?
1st manager 2nd manager 3rd manager
“According to me, RFID has
helped in enhancing the
consumer research in the
market with the help of RFID
tags implemented on every
fashion products.”
“I think that RFID has been
helping in enhancing the
inventory tracking in the
company with the help of
RFID scanners that helps in
real-time monitoring of
stock.”
“According to me, RFID
technology has helped in
increasing the security of
products during shoplifting
by a remote scan perform by
RFID tags and can be
monitor for minimizing the
risk of product loss.”
Analysis: As per the first manager, RFID has been helping in enhancing and supporting
customer research in the market by implementing RFID tags on fashion products. The second
manager expresses that RFID has helped in improving inventory tracking in the company with
the help of RFID scanners which help in real time monitoring of stock. The third manager has
explained that RFID has helped in increasing the security of products during shoplifting by a
remote scan perform by RFID tags and can be monitor for minimizing the risk of product loss.
Also, Choi et al. (2015) says that RFID selection in retail store network basically leas to better
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cooperation and decreased stock among the different players in the inventory network process.
Cui et al. (2017) says it is a profoundly successful answer for put RFID labels on items and
things as it turns out to be significantly more simpler to follow the item's movement or
development beginning from maker to the clients. Most of the mammoth retail organizations are
presently using the capability of RFID frameworks so as to appropriately incorporate their
inventory network forms, individuals, accomplices and items and in the meantime, improve the
general productivity and adequacy as far as decrease in the rate of blunders. This procedure
thusly primaryly chops down the general expense of store network activities. Exponential ascent
in the volume of information: An primary RFID tag is fit for putting away a couple of kilobytes
of data with respect to the labeled thing or . Be that as it may, labels are likewise ready to store
considerably more information including requesting and evaluating history, development
between various areas and natural conditions. Notwithstanding that, a solitary RFID peruser is
conceivably equipped for transmitting information from in excess of 800 labels inside two or
three seconds (Fan et al. 2015). In this way, if an association is eager to follow a specific thing
over a few checkpoints, it can without much of a stretch use RFID for producing 100 to multiple
times more volume of data when contrasted with the conventional standardized tag framework.
For example, Walmart is picking to produce in excess of seven terabytes of information once a
day. This specific volume can basically overpower the information distribution centers.
Question 3: What is the future of RFID technology in your company?
1st manager 2nd manager 3rd manager
“According to me, we are
looking for increasing the use
of RFID technology in our
“I think that the use of RFID
technology will help in
reducing inventory
“According to me, RFID
technology might help in
increasing customer
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products for enhancing
customer research.”
management labor.” relationship in the market.”
Analysis: Retail industry can embrace the RFID labeling strategy so as to lessen the shrinkage
just as guarantee the accessibility of product with the goal that the clients can make their ideal
buys. Nonetheless, the quantity of rivals in the market is quickly developing and with that, the
retail organizations are confronting more weight from their shoppers. In this way, the retailers
are together looking for an approach to have the capacity to legitimately streamline the
production network tasks and at last guarantee high stock improvement (Ayers and Odegaard,
2017). So as to fill this need, retailers are generally settling on the RFID appropriation with a
typical mean to upgrade the perceivability from producer's point of view over the whole
production network, commonly including the private alcoves, coming up, and shop floor to the
leave entryways. RFID in retailing commands the consistence of specific principles where
joining a RFID chip adjusting a worldwide standard (GSI EPC) requires the labeling of every
item with the goal that it is interestingly recognizable over the retailer's production network and
retail locations. The RFID chip may store data about the things including its size, style, shading,
etc. RFID recognizes exceptional SKU, which thus permits sufficient detectability. Improved
discernibility all through the store network basically alludes to a completely mechanized
coordinations with least blunder and precise stock control. Regardless of whether RFID
guarantees noteworthy positive changes in the retail inventory network execution.
Notwithstanding, the reception of RFID in retailing still includes certain specialized limitations.
Initially, there is potential absence of benchmarks in the execution of RFID in retail businesses.
Benchmarks are yet to advance completely and the cost of RFID perusers and labels are
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relatively higher (Hauser et al. 2017). Notwithstanding that, few of the conditions and labels can
result in issues in perusing.
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Chapter 5: Conclusion and Recommendations
5.1 Conclusion
According to the exploration done by (), store network the board alludes to joint effort of
incorporated arranging, control and coordination over different procedures and capacities in the
production network. It has been helping in giving additional esteem included administrations by
limiting absolute expense of partners in inventory network. Production network the board has
been a progression of exercises and procedures that has been helping in exchanging physical
techniques along chain. Production network the board is a procedure arranged methodology that
has been centered around sourcing, creating and conveyance of merchandise to clients. Supply
can the executives is giving a basic job in the improvement of association by expanding revenue
in the market. Store network the executives is moving towards key coordinated effort
among provider and authorities. There have been rivalry included on adaptability in time
creation with less inventories. Be that as it may, there have been increment in the consciousness
of client, conveying free items and on-time conveyance. Effective Customer Response (ECR)
and Customer Relationship Management (CRM) is a significant purpose of store network the
board. CRM has been pursuing for expanding association with real clients for upgrading
association with real clients with the assistance of improving quality gave to clients. In this
manner, for improving assets in business, the crude materials and precision of conveyance items
have been kept up legitimately. The production network the executives helps in giving business
in an improved and synchronized route for upgrading their business stage. According to different
investigations, inventory network the executives framework helps in giving additional esteem
increased the value of included administrations. This assistance in diminishing expense of all
partners present in store network and their monetary position in the market. The essential idea of
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store network the executives have been centered around giving sorted out arrangement of tasks
and exercises giving a legitimate grouping of activities for encouraging creation in the
association. As remarked by (), inventory network has been centered around idea of procedure
situated methodology dependent on executing fabricating, sourcing, coordinations and last
conveyance of items to clients. The worldwide business stages have been influenced by the
production network the executives. It has huge impact for expanding the work proficiency and
development in business. The store network the executives has been making stride for improving
business in the business. There has been fundamental technique for rehearsing store network the
executive’s framework. There have been remarkable arrangement of operational exercises and
incentive in the market that help different organizations in the inventory network framework and
gather important information from the market. There have been fundamentally five perspectives
of the production network the board framework that are referenced beneath: Assembling: This
perspective has been centered on the requests of item in the market and profitability proportion
of assembling for that specific item. It has been observing different perspectives that are centered
on quality control, prerequisite upkeep and organizing of work process. The essential segment of
business has been in each organization that has been working effectively and giving business in
the market. The assembling some portion of organization should be legitimately overseen in the
market as this assistance in assembling items for the organization.
5.2 Recommendations
Stock: The stock of an association assumes a significant job in the improvement of association. It
has been helping in choosing about moves made so as to keep up a sharp methodology in the
improvement of association. IT has been the present resource of an association as it partake in
getting ready monetary record of the organization. The stock administration has been
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straightforwardly associated with the production network arrangement of the organization. In this
manner, there have been a sharp methodology in the improvement of the organization in the
market. An appropriate stock control helps in recognizing stock administration and request of
items in the market.
Data: This component of inventory network the board helps in giving partners information in
regards to items to settling on best choice in regards to information that should be assembled.
There have been dangers engaged with production network the executives framework including
globalization. Globalization has been influencing the effect of production network the executives
framework in the association. Supply jawline the board framework has been helping in settling
on viable choices in the market. Information has been assuming a significant job really taking
shape choice in the market. This information can be broke down appropriately before settling on
powerful choice in the association.
Transportation: During contrasting the truck and airship cargo conveyance alongside rail and
ocean travel has been unmistakable and a noteworthy distinction between their cost and requests.
Measurable information demonstrates that organizations have been rolling out vital
improvements in their cost by diminishing it and expanding administration dimensions of clients.
5.3 Future Work
Transportation of items has been influencing the cost and request of the items in the market. Late
conveyance of items raises hell circumstance for organization to fulfill the need of the clients in
the market. Area: This component of has been encouraging in giving offices to store network to
upgrading their generation and stock viable in the association. This five parts of store network
the executives has been characterizing the utilization of production network the board in the
market. The utilization of various parts of inventory network the board has been helping in
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giving an appropriate methodology to the improvement of the organization in the market. Area
has been useful for finding the geology of items amid transportation methodology.
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