RFID Technology and Real-Time Supply Chain Visibility Analysis

This dissertation investigates the relationship between Radio Frequency Identification (RFID) technology and real-time supply chain visibility. It explores the challenges companies face in managing increasing information flow within their supply chains and the role of RFID in improving tracking capabilities, including product transportation, shipment tracking, and inventory management. The research examines the impact of RFID on supply chain efficiency, the importance of real-time information, and the benefits of enhanced visibility for decision-making. The study employs a secondary research methodology, analyzing existing literature to understand RFID's influence on supply chain management, identify key aspects of supply chain visibility, and assess the utility of RFID in improving it. The dissertation also addresses research questions about RFID technology, its impact on the supply chain, the facets of supply chain visibility, and the role of RFID in improving it, ultimately aiming to determine the relationship between RFID and real-time supply chain visibility and its impact on organizational decision-making and performance.

Dissertation
(To understand the relationship between RFID and Real Time Supply Chain Visibility)
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Abstract
[In the end]

Table of Contents
Abstract......................................................................................................................................1
Introduction................................................................................................................................3
Research Background.............................................................................................................4
Research Problem...................................................................................................................5
Research Aim.........................................................................................................................6
Research Objectives...............................................................................................................6
Research Scope......................................................................................................................7
Research Questions................................................................................................................8
Research Hypotheses.............................................................................................................8
Summary................................................................................................................................8
Research Methodology...............................................................................................................9
References................................................................................................................................11

Introduction
The focus of this paper is to understand or investigate the relationship between RFID and the
real time supply chain visibility. RFID refers to Radio Frequency Identification. Companies
around the world are operating in fast changing environment and more stakeholders are
engaging with each other on daily basis. The major challenge the companies are facing
nowadays is to handle the increased amount of information (Christopher, 2000). The
identification of right information and interpretation of them to make appropriate decisions
has become challenging. However, if the organizations that are engaged in the supply chain
activities gain and use information effectively and efficiently, then it is likely that the quality
of the supply chain will improve along with the cost of conducting the supply chain activities.
The supply chain visibility has been identified as one of the supply chain aspects that is being
considered as the popular method to handle the challenge that is being faced by the
organizations. The researchers have stated that the increased information visibility is likely to
improve the supply chain management. The involvement of technology with the supply chain
is one of the aspects that can help in improving the supply chain visibility. Technologies are
constantly improving and the organizations are adopting these with faster pace than before. It
has been identified that now the organizations are willing to adopt the technology in various
functions whether it is managing the manufacturing of consumer products, handling the
customers on daily basis or managing the employees within the organization.
The focus of this research paper will be to understand and analyse Radio Frequency
Identification technology that is likely to assist in effectively managing the supply chain by
improving the tracking ability. The RFID technology can be utilized in the tracking of
product transportation, shipment tracking, and effective management of inventories (Michael
& McCathie, 2005). This improved tracking ability directly converts to the efficient

management of the supply chain aspects with the reduced chances of error. Moreover, it has
been identified that the RFID technology is likely to enclose or supply comparatively large
number of information than the previous techniques of product or shipment tracking.
The current paper will assess the RFID technology in relation to the supply chain
management. Along with that, the focus would be on understanding the assistance of RFID in
improving the visibility of supply chain. The conduction of research will be based entirely on
the secondary research method where various past research papers of the researchers will be
picked to reach the research goal.
Research Background
The supply chain arena is continuously getting complex and the organizations can witness
competition in the supply chain. Few of the researchers have stated that the competition that
used to take between two organizations have shifted towards competition between two supply
chain network (Christopher, 2000). The change in the orientation can be credited to the
development of business environment that witnesses increase in the need of the consumers,
decrease in the life cycle of the products, unlimited mushrooming of numerous products from
every corner of the world, globalization of supply chain activities, and constantly changing
everything. Lee (2004) states that the environment has become complex than before and
therefore if the companies are willing to stay ahead in the competition while meeting the
needs of the consumers, then it is likely that they have to deliver quality goods to the
consumer as fast as possible and in lowest cost possible.
Along with that, the organizations should be able to supply the products through various
channels with the same efficiency so that they can ensure the shortest and cheapest route
possible in supplying the products to the consumers. The achievement of these supply chain
objectives is important to ensure that the firm stays profitable and sustainable for longer

period. Moreover, to achieve such efficiency, it is important that the firms have good amount
of information that can be utilized to make effective decisions. Information within the supply
chain can be of various forms and types and availability of all of them is sure way to make
informed decisions. The flow of the information within the supply chain network should be
form end to end and should be without any hurdle or challenges (McFarlane & Sheffi, 2003).
The smoothness of information flow is important along with the availability of the
information in the real time with the visibility to the different entities in a supply chain
network for good decision making. The individuals engaged in the supply chain activities
should be able to clearly visualize the entire supply chain network.
Research Problem
The limited presence of information in the supply chain management is likely to impact the
decision making of the organization in relation to supplying the products to the consumers in
timely and cost effective manner. Moreover, the organization will not be able to beat the ever
increase challenge in the competitive market. Therefore, it has become an important aspect
that the effective information should be available to the decision makers. The quality and the
quantity of the information decide whether the organization will be successful in the market.
The current advancement in the technology has led to the assumption that the visibility in the
supply chain can be improved due to the presence increase amount of information regarding
product or shipment movement (Francis, 2008). The challenge that is being addressed in this
paper is to understand whether the RFID, being a current technology in supply chain tracking
mechanism, is appreciable enough to assist in the visibility of supply chain. The RFID
technology is used to track movement of supplies by providing information of each product’s
delivery from one location to another (Delen et al, 2007).

Moreover, another aspect is to ascertain whether the improved visibility leads to the
improvement in the overall performance. The inclusion of technology is not only constrained
to the data shared by the RFID technology. There are various transactional data that are
generated at each supply chain points such as order negotiation, order fulfilment, shipment,
delivery, supplier information, providers, and others. Collectively, the vast amount of
information can be used to make improved decisions. The current research paper is oriented
towards understanding the same in detail in the further chapters.
The next sub-section shows the aim of this research paper followed by the research objectives
and scope. The research questions have been developed that are likely to guide in the
conduction of this research.
Research Aim
The aim of this research paper is to understand the relationship between RFID technology
and real time supply chain visibility.
Research Objectives
Based on the research aim above, the research objectives have been developed for this
research paper. The research objectives are given below:
- The first objective of this research paper is to understand the impact of RFID
technology on the supply chain. The focus would also be on briefly understanding the
RFID technology as it has been assumed that understanding the RFID technology will
give greater understanding in its impact.
- The second objective of this research paper is to understand the aspects of Supply
Chain Visibility. There are various facets of Supply Chain Visibility and in this
research paper, major ones will be assessed that are directly associated with the
research aim.

- The third objective of this research paper is to understand the utility of RFID
technology in improving supply chain visibility. It is expected that the understanding
of the various aspects of RFID technology and supply chain visibility while fulfilling
the previous two research objectives will lead to understand the utility of RFID
technology in improving the supply chain visibility.
Research Scope
The research scope refers to the premise within which the entire research will be conducted.
The current research paper only considered the aspects that are directly related to the topic
under study and the subjects that are vaguely related to the research topic has not been
considered for discussion to keep the research paper brief and to the point. The research
scope of this research paper has been developed to increase the feasibility for conducting the
research. The research scopes are given below:
- The first research scope of this research paper is to assess the research papers
developed by other researchers or academicians in relation to the various aspects of
the research topic. The focus here would be to analyse what has been written and said
about the research area which might help in achieving the aims and objectives of this
research paper.
- The second research scope is to assess the suitable research methodology that will be
employed in meeting the research aims and objectives. The availability of
methodology is numerous from which suitable one will be picked for this paper.
- The third research scope associated with the research paper is to come up with detail
understanding of various facets of research topic and then recommend ways that can
be adopted in the supply chain management that can aide in improving the visibility
and better decision making by the stakeholders.

These research scopes have defined the premise within which the research will be conducted
and the research aims and objectives will be achieved.
Research Questions
The research questions developed will help the researcher in staying focused towards
achieving the aim of this research paper. The research questions will be answered in the
conclusion section of this research paper after the completion of the research.
Given below are the research questions:
- What is RFID technology?
- What is the impact of RFID technology on the supply chain?
- What are the aspects of Supply Chain Visibility?
- What is the utility of RFID technology in improving supply chain visibility?
- Does supply chain visibility support organizations in improving the supply chain
management?
Research Hypotheses
The research hypotheses developed for this research paper will be either proved or disproved
based on the studies conducted ahead. The research hypotheses are given below:
- There exists relationship between the use of RFID technology and the visibility of
supply chain.
- The supply chain visibility is important for the organizations to make better supply
chain management decisions.
Summary
Overall, it can be stated that the organizations in the contemporary period are highly
dependent on the supply chain efficiency. The increasing competition has created an

environment where it has become important that the companies should be able to reach their
customers faster and in a cost efficient manner. Moreover, the needs of the customers are
changing faster due to change in the product development and availability innovative
products in the market. The companies around the world are in rush to fulfil the short term
demand of these consumers and stay ahead of the competition. In such scenario, it has
become important that the advanced technologies are adopted to ensure that the product
deliveries are tracked effectively to ensure cost and time saving. The increase in the visibility
in the supply chain has become an important aspect. Technologies such as RFID are used to
track the product movement. It is expected that such technologies help in improved tracking
of the products and better management of the entire supply chain system.
The current paper is divided into various chapters. The second chapter discusses about the
research methodology adopted to conduct this research. The focus in this chapter is on the
discussion about the secondary research method which is the preferred method here. The
subsequent chapters after that build on what has been discussed in the Research Methodology
section. In the end, suitable recommendations are given along with conclusive remarks from
the researcher. The conclusion chapter covers the answers to the research questions of this
paper in brief.

Research Methodology
This chapter is concerned with understanding of the methodology that has been adopted in
the conduction of this research. The secondary research method has been considered for this
research paper. The secondary research method is related to referring the secondary sources
to conduct the research (Stewart & Kamins, 1993). This research method is also called as
desk research as the entire research is conducted with the help of various articles and books
developed by other researchers, academicians, and practitioners. The current paper will
consider research papers written by other researchers covering the time period of around one
decade. The secondary research method has been selected for the study as it is cost effective
and requires minimum time for the study as there is no dependency on the respondents for
any kind of data collection. Unlike primary research, the secondary research has been
preferred for this research as it has been expected that the secondary research alone will fulfil
the objective of this research. Moreover, considering the time band and resources available to
conduct the research, the secondary research is the most suitable at present.
RFID Technology is relatively new with not more than a decade old and there are various
papers available that can be referred to understand this technology in detail (Want, 2006).
Moreover, there are some of the research papers that have showcased case studies on RFID
technology that can be used to fulfil the requirement of this research paper.
Apart from that, the supply chain visibility is equally new to the supply chain management
arena and there are limited numbers of papers available on this aspect. However, as per the
topic of this research paper is concerned, it is expected that the existing number of research
papers and books will fulfil the objectives. Some of the books have been used also to
generate information relevant to this research paper. Books on RFID technology, supply
chain visibility, and other related topics have been referred.

The chapters ahead and their sub-sections have been developed considering the flow of the
research and based on the level of importance.
The goal of this paper is to understand what has been said about the various aspects of the
topic under study and then reaching a conclusive remark. It is clearly visible that there are
numerous research studies conducted in the field of RFID, Supply Chain Management, and
Real Time Visibility. Therefore, the goal here is to refer to as much studies as possible
through this research paper to ascertain any conclusion that can further aid in the researches.
The focus would be to explore the research papers and understand what has been said in those
papers. In general there are two types of research methods, namely, primary research method
and the secondary research method. The primary research method is used to collect required
data directly from the primary sources. There are various methods that are employed in
particular primary research such as the use of observation, sending the questionnaire to the
respondents. Primary research method carry a major benefit over the secondary research
method that it allows the researcher to collect data from the original resource directly and
thus gives enough freedom to collect data as required by the research subject (Glass, 1976).
This is not the case with the secondary research methods. In the secondary research method,
reliability is placed on secondary sources only. Along with merit of primary research, there is
also some demerits in the secondary research. One of the major demerits in the primary
research is that the primary research is time consuming and requires lots of investment for the
data collection. Moreover, the primary research requires that the researcher have substantial
amount of time at hand depending on the topic under study. However, comparatively, the
secondary research is less time consuming as the researcher only need to bring in information
and data from the resources that are already in existence and no ground work is required.
The secondary research method allows the collection of information and data from the
resources that are already in existence and have collected that information in their repository.

The researcher who is engaging in the secondary research can use the information as per the
requirement but it will require them to further make some changes as required. Unlike
primary research, the researcher cannot expect tailored data that is directly suitable for the
research study (Smith, 2015). However, it should be clearly understood that the use of
particular research method depends on the topic under investigation. If the research topic is
such that limited to no research has been done in that area and it is most likely that the
researcher has to engage in the collection of information or data from the primary sources.
However, if most of the studies have been conducted in the particular field, then the
researcher will face limited challenge in collection of appropriate information and data. The
same can be said about the current research topic. The current research topic is based on the
areas that have been widely discussed by the researchers. However, the researcher has not
encountered any research or study that can collate together all the perspectives and try to
reach particular conclusion. This gap will be filled by considering this study.
The current mode of study is secondary as the two factor economy and the presence of
resources is in the play. The use of already collected information by someone else is a great
way to save cost on reinvestment for that activity. This ensures that the researcher will be
able to save resources required to conduct this part of study. Moreover, even it becomes
necessary for the researcher to engage in the purchase of the secondary data sources then it
will be less costly affair.
The next chapter uses the secondary research method to review the various research papers
that have been developed in relation to the research topic under consideration. The chapter on
results will discuss the findings from the study of these research papers and in the final
chapter a conclusive remark has been given.

Literature Review
The current section is divided into several sections. The first section is about understanding
the relationship among the RFID technology and the supply chain aspects. The second
section of this chapter is focused towards understanding the aspects of supply chain visibility.
The third section is focused towards understanding the utility of the RFID technology in the
improvement of the supply chain visibility. These three sections are followed by the fourth
section summarizing all the studies conducted.
RFID Technology and Supply Chain
RFID stands for Radio Frequency Identification. This technology is used to track objects pre-
embedded with tags. The objects that are to be scanned contain the tags which store
information in the electronic form. There are generally two types of types of tags that are
used in the businesses (Nath et al, 2006). One is passive tags and another is called active tags.
The passive tags use the energy from the radio waves that is emitted from the RFID stations
positioned in the close proximity to the tag. On the other hand, active tags contain individual
power source and emit their own signal to be detected by RFID reader (Hahnel et al, 2004).
The use of RFID tags can be observed in various industries around the world. The production
or manufacturing houses use the RFID tags to track the movement of unfinished or semi-
finished goods from one location to another (Chao et al, 2007).
In the supply chain, RFID is used to track the level of inventory. The presence of RFID tags
can help a particular individual in knowing where a good is in the supply chain network. The
goods released from the manufacturer are passed through RFID reader which ascertains that
the product has left the location and is in transit (Ngai et al, 2007). The way RFID helps in
tracking the movement of goods from manufacturer to the customers, in similar fashion, it

helps in keeping track of the products that returns from customers back to the manufacturer.
Wisner et al (2009) asserts that the use of RFID technology in the supply chain has helped in
increase the overall efficiency of the management of the goods inventory. Whitaker et al
(2007) has asserted that the RFID has helped improve the way goods are being tracked and it
will improve further in the days to come. This technology has allowed the businesses in
staying informed of product flow.
The emergence of Supply Chain Management can be traced to early period of 1950s. This
was the time when the producers in the country were gradually orienting towards producing
goods in bulk (Arndt, 2004). This was being done to bring the cost of production down and
increment in the overall production efficiency. However, this period not witnessed any form
of major effort toward developing any form of relationship with the suppliers or engaging in
effort that can improve the quality of the products. The major reliance of production activities
were on the internal resources as for example no technologies or capacity improvement were
borrowed from the external parties (Handfield & Nichols, 1999). In addition to that, it has
been identified that, this period was oblivious to the aspects of knowledge sharing in any
form related to the production. There were no instances of businesses or manufacturing units
combining together to form strategic partnerships (Wisner et al, 2009).
However, during the period of 1960s, the above situation improved to some extent and the
production units started implementing strategies to manage the resources and plan the needs
on a regular basis. The effort led to understanding on the aspects related to managing the
production materials and the relationship of the same with the inventory level and the costs
associated with storing the high inventory (Mentzer et al, 2001). The identification of the
incurring costs allowed the business units to ensure that the communication aspects within
the organization is improved to ensure that inventory costs are reduced by increasing overall
efficiency. By the time 1980 reached, it was witnessed that the supply chain management had

become an important aspect (Wisner et al, 2009). The major reason was the increment in the
global competition. The increased competition allowed the customers to ask for products that
were better in quality and less costly. This pushed the organizations to focus on producing
goods of the same level while trying to cut costs on other business elements such as supply
chain, labor management, and others. The elements of just in time production and the total
quality management came into the picture during this period (Wisner et al, 2009). These tools
helped the producers in significantly reducing the costs associated with manufacturing and
thus they were able to face the global competition. In addition to the above, the aspects of
business process reengineering came onto the horizon and the businesses started to improve
the business design to make it more efficient. The focus shifted from just producing the goods
to making the production more efficient (Wisner et al, 2009). The additional functions such
as marketing, finance, human resources were also made efficient and effort was being made
to ensure that less cost is incurred on any activity.
The period of 1990s witnessed that the businesses started to rely on the third party to handle
their supply chain activity. The on-boarding of third parties helped reduce the cost further.
This also allowed emergence of new set of business units and specialized supply chain
management companies (Wisner et al, 2009). This worked two ways. On one hand it allowed
the businesses to focus on their key growth area that was, production of quality goods, and on
the other hand it allowed third parties become more efficient in supply chain management. In
the contemporary period, the new aspect has surfaced prominently and that is the ecommerce
system. The ecommerce system, to some extent, has reduced the need of intermediaries and
the companies are directly reaching to the consumers’ home with the use of large supply
chain management companies or courier services (Simchi-Levi et al, 1999). Now the
companies are connecting directly with the logistic companies and allowing them to cut the
middle supply chain cost to a greater extent.

Understanding the growth of the supply chain considering the historical context was
important as it gives a clear picture on how things improved along with the time. The supply
chain management is the key to the success of many businesses and there are organizations
that are still making effort to further improve ways in the supply chain management (Lambert
& Cooper, 2000). From discussion till now, it can be understood that the concepts of supply
chain management is very old and it is likely that new things are going to come in the future.
The increase in the global businesses, the need for more efficient supply chain has become
the need of the hour. The global supply chain has increased reliance on third parties from
different countries and it is important all of them work in right coordination to meet the
customer demands on time (Seuring & Muller, 2008). The diagram below shows a typical
supply chain process that has been traditionally in the picture:
The focus of the supply chain has been on the customers as it has always tried to bring value
to the customers. Value refers to bringing quality products and services to the customers at
lowest cost possible.
Here, it can be stated that the increased integration of the businesses with the supply chain
management is likely to go a long way in improving the cost and timely delivery of the
products to the end consumers. A completely integrated business system is likely to work
appreciably well in the competitive environment than a system where limited communication
exists (Ballou, 2007). In addition to that, it has been found that due to the advancement in the
technology, the integration can be done easily. The improved technological elements have
enabled the supply chain to become efficient to a greater extent. The technological elements

can help the businesses in improving the tracking of the products from its point of origin to
reaching the customers’ hand (Thomas & Griffin, 1996). Here, one thing should be kept in
consideration that the technology should be used as the enabler but it should not entirely
overpower the entire supply chain process. The reason is that most part of the supply chain is
the customer service and the lack of it might give others competitive advantage. Therefore,
ensuring human presence within the supply chain system is crucial (Chirstopher, 2005).
After a brief understanding of the historical and contemporary aspect of supply chain, it
would be important to dive into the technology that is being used to a greater extent in current
SCM. Radio Frequency Identification allows the businesses to store product information on
small chip and tag it to the particular product. The information can be read from the chip
using the RFID readers without bringing the two elements, RFID reader and tag, in physical
contact. RFID has been identified as the tool that reduces the human error to a greater extent
(Pala & Inanc, 2007). Previously, bar codes were being used in large number. However, the
challenge in using the bar code is the human error and also the damaged bar codes – due to
rough transit – made it difficult to read. On the other hand, the information in the RFID is
stored in the chip and therefore there exists minimal opportunities that can damage the stored
information (Curtin et al, 2007). RFID has been an appreciable technology and there is no
doubt that the technology has hugely impacted almost all the business sectors whether it is
health care, production of consumer goods, defence or agriculture.
The diagram given below shows an RFID system.

Figure 1: Typical RFID System in Supply Chain ("STid RFID - Logistics", 2017)
Here, it can be stated that RFID system for the supply chain consists of three aspects at the
suppliers’ or manufacturers’ end, namely, creating the pallet and issuing the tag, establishing
control mechanisms, and shipping the product under the established control system. Here, the
tag is fixed for each of the products and a pallet tag is placed on the overall product package.
In the next stage, the pallet is passed through a checkpoint embedded with RFID reader that
reads both the tags. The use of RFID mechanism can be found during the Second World War
when the aeroplanes were identified for whether it is of friends or that of the enemies.
The RFID system is not only used for business use, but even for personal use (Bottani &
Rizzi, 2008). As for example, tracking pets has become easier with this technology, toll
payments and other such activities. The use of RFID is hugely associated with the reduction
in the wastage of products, and reducing product theft. A particular RFID technology can be
used in multiple ways and, therefore understanding the components of a typical RFID system
would be an appreciable effort. A RFID system consists of tags (also called as Transponders),

Readers, RFID Software, Communication Network, and the frequencies (Ahson & Ilyas,
2008). The transponders are placed on the product that is being tracked. There are basically
three types of transponders available. They are active, passive and semi-passive. The active
tags are those that store its own energy or power source and emit radio waves to send the
information to the nearby RFID reader. Another form of transponder is passive tags that do
not contain its own power source and works on the power source of the RFID. The
electromagnetic field generated from the RFID reader acts as the power source for such
transponders. These are cheapest of all the three forms of RFID. The third form of RFID is
the one that has the ability to store energy to release the information and it can also use the
external power source like passive transponders.
A particular transponder can be used for once or can be used multiple times (Zhu et al, 2012).
Single use refers to when a customer makes the purchase of the product and throws the tag
out. On the other hand, the multiple uses can be referred to when the tag is placed on a
vehicle that frequently crosses a toll. As per the RFID readers are concerned, there are two
types of reader. One is fixed on the particular mounted area to scan the object passing by it
and another is handheld which is used by person deputed at the area. As per the RFID
software is concerned, it entirely depends on the utility of the organization for which the
software is being made (Wamba et al, 2008). The software can be organization specific. The
communication allows two organizations to interact when a particular product leaves a
location. Therefore, it is a necessary aspect. As per the frequencies are concerned, there are
four types of frequencies, namely, low (134 kHz), high (more than 135 kHz), ultra-high
(megahertz), and microwave (gigahertz).
After getting a clearer picture of mechanism of RFID system, the next aspect is to understand
the studies associated with integrating this system with the supply chain. The supply chain
management has been identified as fulfilling one objective which is to provide value to the

customers using the right products and services (Angeles, 2005). The achievement of this
objective can be completed if the organizations ensure that their internal communication and
information sharing is appropriate. In addition to this, the better communication mechanism
with the external parties is equally important. This is also referred as integrating the supply
chain.
It has been identified by some of the researchers that in the effort to integrate the system, the
organizations orient towards the use RFID mechanism. The first step towards the use of
RFID mechanism is to locate the partners in the play and then identifying the most important
partner. The next step is to implement the RFID system between these two entities.
Gradually, this integration can include other partners as per the need (Kärkkäinen, 2003).
Furthermore, a constant review of the system is needed to ensure that the improvement is
made along the way. As per Fish and Forrest (2006), there are seven key steps that should be
considered by any organization that is willing to implement the RFID system.
The initial step is the development of organizational strategy that relates to the supply chain.
It has been suggested that the use of SWOT elements can help in understanding the extent to
which the RFID system can assist in the effective management of the supply chain. Instead of
out-rightly implementing the RFID system, it has been suggested that the organization
engage in initial implementation and then move ahead with the implementation (Michael &
McCathie, 2005). In the next step it has been suggested that the continued improvement
should be made on the implemented system instead of getting passive after the
implementation. The last three steps are referred to building trust with the partners in the
supply chain network and collaborating with them to ensure that a cross-functional system
can be built (Tajma, 2007). After that, expansion of the mechanism to the entire distribution
system of the organization is suggested.

The method suggested by the researchers is appreciable as it considers phased
implementation of the system which ensures that the risks in implementation are managed
accordingly. In addition, it allows organization and the entire supply chain network to
gradually adopt and learn the new system. However, the issue in consideration of such
process is that it takes longer than usual in implementing the new system which might allow
enough time for the competition to move ahead. Also, it is less focused in comparison to all-
at-once implementation and a continued longer change process might be disruptive instead of
constructive.
If the contemporary implementation of RFID is considered, then it can be stated that the use
of RFID has gone rampant as it can be witnessed in almost every industry in existence today.
The RFID mechanism has allowed the organizations of every format to become efficient in
handling and managing the products (Asif, 2005). The industries such as banks, retail,
logistics, airlines and even the government organizations are using this technology to keep
track of things. The mechanism can be used by retailers in tracking the number of products
they have in their inventory (Sarac et al, 2010). This allows them to ensure that no product is
lost in warehouse or in transit. It also helps track theft and fraud.
The product manufacturers successfully utilise this technology to track the movement of
finished or unfinished product form one location to another within the production house. The
information contained in the RFID can be used identify the manufacturer of the supplied part
and is easy to resend the supplied product back to the supplier if any defect is identified.
RFID in airline is used to track the luggage of the customers during the transit between the
two locations. Banks can use this technology on bonds or cash bundle to ensure that it is
tracked appropriately. If this technology is used in individual notes then the government
agencies will save enough time in hunting down the counterfeit notes. In addition to these,
there are numerous ways this mechanism can benefit the organizations, public and private.

As has been discussed throughout, the RFID system has been identified as having profound
impact on the supply chain management. It helps in better communication and increased
automation. In nutshell, it can be stated that this technology help manage the inventory from
the initial point to the end. It also helps in automating the processes and thus reduces the
opportunity of human error which positively impacts the cost. It improves the level of
partnership with the entities within the supply chain network. It helps make supply chain
more visible. Moreover, the use of this technology can help in improving the service quality
and cost savings. However, despite these positive impacts of this technology, there are some
challenges that are associated with RFID. One of the challenges is the limited orientation of
the management to some extent towards RFID. Another is bringing commitment from all the
stakeholders on one table. In addition, implementing this system is a costly affair with less
reuse option, if the products are reaching into the end users. Also, the selection of right
combination of RFID components becomes challenging to some extent. The next section
reviews the supply chain visibility aspects considering various past studies.
Aspects of Supply Chain Visibility and Performance
The researchers have used the terms, information sharing and visibility, conversely.
However, few of the researchers have identified that both hold different meaning. The
information sharing is considered as an act but the visibility is considered as result
(Swaminathan & Tayur, 2003; Barratt & Oke, 2007). If considered in simple terms, visibility
means seeing both ends.
As stated earlier, the supply chain process starts when a transaction takes place. The placing
of order leads to the generation of different information. Here, if the various stakeholders
within a supply chain in connected to each other, then it is most likely that the information
will be shared will all the them thus allowing them to stay on the same page. The sharing of

such data can be considered as fundamental to the development of right planning for the
supply chain. A study conducted by Bradley (2002) identified that around 80% of the
participants had heterogeneous communication system and thus were facing challenge in
engaging in effective coordination. In addition to this, most of the participants stated that the
use different software which is not compatible with other partners in the supply chain most of
the time created challenge in sharing business critical information when required. Lee et al
(2000) asserted that if the production houses share information with other stakeholders, then
it is most likely that they can be more response. As for instance, if a manufacturer has the
knowledge about the available stock at the retailers’ end then it can take informed decision on
number of products to produce. The manufacturer can only respond to the real demand if the
information about actual sale is present.
There are various researches that have led to the understanding that the presence of visibility
is crucial for the improvement of the supply chain management (Simatupang & Sridharan,
2002; Kopczak, 1997). They have further asserted that the presence of appropriate
information within the system, allows the components of the system to stay together. All the
processes, from bringing in supplies to sending the product to the customers, stay intact if the
good flow of information is maintained. The comparative assessment of the supply chain
networks have led to the understanding that those networks that have access to the
information are more efficient than others (Mason and Towill, 1988). Also, it has been found
that the presence of real time information allows the organizations to become market or
demand driven instead of forecast driven. In the absence of real time information,
manufacturers rely on historical sales record and build forecast. However, the real time
information allows them to understand the flow of the market and make production decisions
accordingly (Fliedner, 2003).

Holcombe et al (2004) asserts that organizations that are willing to increase the external
visibility should first ensure that the internal visibility of the firm is already in good
condition. An organization that is of substantial size or is operating in various locations has
faced challenge in sharing information and gaining real time information. Here, one aspect
should not be missed and that is upper hand. If a particular organization has upper hand over
another, then the later sometime does not comply with the information sharing that challenges
the objective of meeting visibility objective.
As stated in the earlier section that the supply chain is more disconnected than connected due
to the use of different systems. Fawcett & Magnan (2002) suggests that there are still lots of
chances that can be utilized by firms in getting integrated on information sharing aspect.
Holcomb et al. (2004), asserts that the organizations that have real time access to the supply
chain information can give improved services to their consumers and also the operational
activities will become more efficient. It has been identified that the increase in the orientation
towards the supply chain management gave way to the development of various tools and
techniques such EDI, SCM software, and others. The internet has been a major facilitator in
communicating information between the long distance entities. The complexity has been
managed effectively to a greater extent with the use of internet based methods (Gunasekaran
& Ngai, 2004). Watson et al (2000) suggests that if the organizations are willing to increase
the benefits they are reaping from the current information technology, then they have to adopt
advanced system and replace the traditional form of supply chain management.
It has been found that the organizations can use internet to a greater extent as it has helped in
significantly reducing the communication distance between the organizations. Graham and
Hardaker (2000) assert that if the organizations use internet enabled technology, then they
can achieve competitive advantage. The reason is that the internet allows easy access to the
information which further aids in instant decision making as and when required. Here, it has

been identified that the internet allows increased connectivity. However, the challenge in the
supply chain in the improvement of connectivity is faced by numerous hurdles. Srinivasan et
al (1994) had identified that the EDI can help in increasing the supply chain connectivity.
However, the use of EDI is not feasible for all kinds of organizations. The main reason is the
amount of investment required to make the EDI fully functional. The researchers have noted
that an ideal connected supply chain would be that where supply chain partners are
functioning on an integrated single communication network instead of making an effort
through multiple connections.
Baratt & Oke (2007) has asserted that the presence information alone in the system is not
likely to help in the improvement of the organizations’ performance or help in the increase of
the visibility. It has been identified that there are two aspects that are important to be present
in the particular information being shared. The first aspect is that the information being
shared should be on time and should be as accurate as possible. Vague information or late
information will add no benefit. In addition, the information should be of useful nature. This
is where the presence of all these three elements within information helps in gaining
visibility. The second aspect is on the decision makers’ side. The information being received
by the other side should consider the information useful and should use that information to
make informed decision. This is where the visibility is converted into right decisions which
further improve the performance of the organization.
Research conducted by Mason and Towill (1999) has reached to the understanding that the
supply chain that has abundance of information leads to increased performance. However, the
organizations that lack such aspects face hard time in getting ahead of the competition. At the
global or international level, this aspect becomes more critical. Christopher and Lee (2004)
has asserted that in most of the instances it has been found that one organization lack
information from another organization which leads to unnecessary chaotic situation and no

fruitful or constructive progress. Therefore, the increased sharing of the information directly
benefits the various stakeholders within a supply chain network. Holweg et al (2005) asserts
that if particular supply chain does not contain enough information that can give required
visibility, then in this case, only the real time information from the sales counter of the
retailers would be enough to make right sales decisions instead of depending on the orders
being received by retailers on monthly basis.
More the information is being shared among the entities in timely manner and accurately,
more will be the improvement in the visibility in the supply chain. One of the important
aspects about the information is that it helps in reducing the level of uncertainty which helps
making accurate decisions regarding the number of products to manufacture. In addition to
that if the organization is engaged in shipping products to the far off distance, then the lack of
information might allow it to choose the route that is comparatively costlier. However, due to
the presence of right amount of information, appropriate route will be chosen for the
reduction of cost.
The use of enterprise resource planning software within the organization allows the firms to
ensure that they have right data related to their supply network which they can use to make
right decisions related to the inventory size or regarding continuing or discontinuing
particular operation. The research conducted by Simatupang et al (2002) has asserted that
there are three aspects that gain to a greater extent if there is visibility in the supply chain
network. These three areas are, meeting the demand of the customers in timely manner,
making appropriate plans for the resource utilization, and knowing and managing the contract
between various partners. As per the contracts are concerned, it has been identified that the
manual management led to the missing of contract durations which used to impact the
supplies. However, with the presence of information technology applications, the status of
contract can be tracked very easily which can eventually lead to the better management. The

use of advanced information technology can be facilitated to effectively monitor and fulfil the
requirements as and when required. There are various technological products available in the
market that can be utilized to facilitate this need. Some of them are warehouse management
system, customer relationship management software, enterprise resource planning software,
and others.
Alexis and Feng (2004) has identified that the use of internet based technology can help in
sharing the information between various organizations in real time. The paper considered
assessment of four case studies and came to the conclusion that the internet based system can
help in maintaining the relationship with various partners at the strategic level. The
information sharing in the real time increases the visibility and brings more transparency.
This also helps in building trust among the organizations. In addition to that, it has been
identified that the use of visibility through the information can help in making decisions that
are in conjunction with the partners. Here the researcher has stated their findings which in
harmony of most of the previous discussed studies. It is clear that the lack of information
leads to the decision making in isolation which impacts the relationship. Moreover, research
conducted by Elini and Ilias (2004) has identified that in the supply chain management, the
information technology helps in getting the opportunity to bring more flexibility and
simplicity. The complex supply chain can be made simple and harmonious if the right
technological tools and techniques are used by the organization. The researchers further state
that the visibility refers to the presence of the right information at the right place in the supply
chain which can be enabled by the use of the advanced technology.
The research conducted by Scott et al (2003) led to an interesting finding which discredits the
mere presence of real time information. The researchers state that the presence of real time
information in the channel is not the final solution to bring visibility. The visibility in the
supply chain can only be brought through the sharing of the right information at the right

place. This consideration of these researchers matches with that of Elini and Ilias (2004)
above. Furthermore, the researchers reinforce the findings of the other researchers discussed
earlier that at the global or international level, the presence of integrated communication
system is the key method to bring visibility. This helps in reducing the inventory and
improving the level of accuracy in the decision making regarding production. Another
research was conducted by Grffiths and Margetts (2000) which identified that the
achievement of the visibility can be done through exchanging the information among the
players involved in the supply chain. These researchers have focused on one of the key
element in the supply chain and that is the demand side of the information. They state the
information regarding the demand of the product is the major driver of right decision making.
The authors have again reinforced what has been identified earlier in the discussion.
The researchers Jakki and Ravipreet (1995) conducted a literature study in which they tried to
understand the importance of information sharing among the two entities and the flow of
communication. The study led to the conclusion that the presence of right level of
communication mechanism between two individual or the entities ensure that the information
sharing is smooth and easy. The similar finding has been stated in the earlier aforementioned
study that if an organization has upper hand over another then it becomes difficult in flow of
the adequate information from the former to the latter. In this case, it becomes necessary that
both the entities understand the importance of communication flow. Another research
conducted by Edward et al (2005) on the information regarding the customer demand and the
management of inventory led to the understanding that the visibility is not simply the
presence of information at all the angles. In essence, visibility is about getting the information
regarding the demand for a particular product. The researchers state that with the use of
information shared on the demand, the organization can reduce the variance that mostly
occurs due to the bullwhip effect.

The research conducted by Edward et al (2003) on the supply chain and aspects of
information visibility led to the conclusion that the visibility is closely associated with the
performance of an organization in the market. The timely and accurate delivery of the
information ensures that the decisions are made well on time. The researcher also asserted
that the information sharing within a supply chain can be a complex endeavour and, therefore
the presence of right tools will be appreciated. Here, the findings of Chan further reinforce
what has been identified by the other researchers. Another research conducted by Tang
(2005) that was based on assessment of various quantity models led to the understanding that
the visibility refers to the presence of the information throughout the supply chain. Tang also
asserted that the presence of visibility in the supply chain is crucial in the reduction of risks
associated with the lack of information in the supply chain network. Furthermore, the
researcher suggests that prior to sharing of the information, it is important that the key areas
should be identified for which information will be shared. This will ensure that the partners
do not get lost in the collection of information that is unnecessary. Moreover, the use of
technology should be facilitated to acquire the right information.
A research conducted by Berry and Naim (1996) led to the understanding that the supply
chain evolution has not been the way it should be. They asserted that the current evolution of
the supply chain has evolved out of necessity and not for the excellence. They state that the
each of the entities functioning in the supply chain considers other entities as the customers.
This is the reason, the delivery of particular product or supply is considered as the end of the
responsibility. However, the focus towards achievement of efficiency can led to the better
results and appropriate information sharing. This will also ensure building trust and long term
relationship and dependency. Another research conducted by James and Chelsea (2004)
regarding the visibility of the asset and performance in the supply chain led to their
understanding that the presence of asset visibility is not directly associated with the

improvement in the supply chain aspects. However, the result identified cannot be further
approved due to the limitations of the model developed.
Another research conducted by Riikka and Helena (2006) regarding the benefits companies
can receive with the visibility led to the conclusion that the level of visibility in the supply
chain network gets impacted by the variation in the level of demand from the consumers.
Furthermore, it has been stated that if the demand plans are improved then it can lead to the
improvement in the visibility. In addition, the complete planning is necessary. Here, one of
the finding of these researchers is questionable where they state that the preparation of
demand plans lead to the improvement in the visibility. However, the other aforementioned
studies have stated opposite of it that the improvement in the visibility leads to the better
planning of production as better demand forecasting can be done.
Here, it can be stated that the assessment of various perspectives led to the understanding that
the presence of unhindered communication flow within a supply chain network is crucial to
improve the visibility. Moreover, the increased visibility further ensures that the entities
working within the supply chain network better informed decisions. The crucial aspect of the
information is related to the demand of the market. If the manufacturers are receiving the
sales information direct from the desk of the retailers, then they can make better demand
forecast and can accordingly increase or decrease the production level. The information
sharing ensures that the supply chain become more visible and efficient. It is important that
the supply chain is improved as the success of an organization depends on the success of its
supply chain.
The assessment of the recent literatures has led to the understanding that the information
sharing is important not only from the retailers to the manufacturers, but from the
manufacturers to the retailers. The both side communication strengthens the visibility and

trust among the actors in the supply chain. There are multitudes of benefits that can be
identified if the information is being shared in the supply chain. Some of these benefits are
reduction in the lead times for the product manufacturing or supply or product supply,
significant reduction in the cost associated with the inventory management and advanced
supply storage, and improved decision making ability of the individuals managing the
production and supply network. Moreover, the improved visibility ensures that the actors
collaborate together at greater levels. It also brings flexibility and increases the problem
solving ability. There are various other researches that have documented the benefits of
information sharing and visibility in large numbers. As stated earlier, the manufacturers
significantly improve the internal decision making and ability to improve any required
changes improves. The current section has helped understand the aspects of visibility and the
critical relationship between the visibility and the performance in the supply chain
management.
RFID Technology and Improvement in Supply Chain Visibility
[To continue]
Discussion and Result
[To continue]
Conclusion
[To continue]

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