Methodology

In exploring the effectiveness and efficiency of RFID applications, we consider the eight key processes that make up the supply chain management process. These processes provide a framework for various aspects of strategic and tactical issues present in the management of the supply chain. These eight processes and their functions are described as follows:

(a) Customer Relationship Management: Provides structure to customer relationship and how such relationships are developed, maintained, and managed. Identifies target customer groups as part of the business mission and develops agreements with key accounts. Performance reporte also measure profitability and financial impact for key customers.

(b) Customer Service Management: Provides customer information such as shipping dates, product availability, and real-time information between customers and the firm.

(c) Demand Management: Balances the customers' requirements with the firm's supply capabilities. This would include forecasting demand and managing the demand in production, procurement, distribution, and in all other outputs of the company.

(d) Order Fulfillment Management: Provides integration of the firm's manufacturing, logistics and marketing plans. This would require the management of partnerships maintained by the company to meet customer requirements.

(e) Manufacturing Flow Management: Helps to manufacture products and establishes the manufacturing flexibility required to service target markets. Requires management of product flow and maintaining the flexibility established.

(f) Supplier Relationship Management: Defines how a company interacts with its suppliers. Similar to customer relationship management, partnership management is required to develop key relationship with core suppliers potentially providing a competitive advantage.

(g) Product Development and Commercialization: Provides the development of new products by integrating customers and suppliers in reducing time to market. Timely development of new products and services are keys to firm's success.

(h) Returns Management: Provides a critical component of sustained competitive advantage forthe firm. Allows firm to monitor productivity improvements and identify valuable projects related to products or services.

Out of these eight processes, we have chosen and identified four processes that include demand management, order fulfillment, manufacturing flow management, and return management where RFID plays a critical role and creates the most value. Keen and Mackintosh introduce "process freedom" as those processes with the ability to add value along the entire supply Chain by enabling the mobility of critical elements. These critical elements are business activities, people, information, documents, and communications that are needed for a more effective business process design. Angels argues that RFIDs hold the potential to provide significant "freedom" that will liberate considerable human labor from certain workflows, as well as facilitate the possibility of making information visible to all participants throughout the value chain.

We will emphasize on business values and strategic advantages of RFID technology as well as the challenges and recommendations in adoption and implementation of the technology particularly when a company extends its supply chain to upstream suppliers and downstream customers, as their external integration needs to gain in capacity planning and in efficiency.