Contribution of RFID technologyto better management of fashion

supply chainsSusana Garrido Azevedo

Department of Business and Economics, University of Beira Interior, Covilha,Portugal, and

Helena CarvalhoUNIDEMI, Departamento de Engenharia Mecanica e Industrial,

Faculdade de Ciencias e Tecnologia da Universidade Nova de Lisboa,Caparica, Portugal

Abstract

Purpose The purpose of this paper is to explore the deployment of RFID technology in fashionsupply chain management (FSCM). It highlights the contribution of RFID to FSCM, supporting fasterlogistics activities, with greater products quality, cheaper and with more responsiveness, improvingcustomer satisfaction.

Design/methodology/approach An inductive theory building approach is used to develop aconceptual model for RFID deployment in the FSCM context. Secondary data analysis from a sampleof six companies supports the identification and discussion of the real advantages, disadvantages andbarriers felt by companies in a fashion supply chain when RFID technology is introduced.

Findings The logistics activities in the fashion supply chain where RFID technology is most widelydeployed are: shipping operations, tracking of raw materials, semi-finished components and finishedgarments, collecting finished goods, handling processes, tracking containers, tracking products fromfactory to store, receiving operations, monitoring, and sorting of merchandise. In most cases, thetagging operation is performed at some stage in the production process and tag reading occurs atdistribution centres or at stores. The main barrier identified to the deployment of RFID is the problemof interoperability. The costs associated with the technology are the main disadvantage pointed out bythe companies.

Practical implications A conceptual framework is proposed exploring the RFID advantages anddisadvantages across the fashion supply chain, the main barriers to its introduction and the fashionsupply chain logistics activities in which RFID could be found. This represents an importantcontribution to companies in this industry to become more aware of RFID. Also, new companies whichare thinking of introducing this technology could overcome its barriers easily, improving itsadvantages and minimizing its disadvantages.

Originality/value This paper explores the deployment of RFID in the fashion supply chain fromthe perspective of technology users.

Keywords Radio frequency identification, Fashion industry, Supply chain management, RFID,Advantages, Disadvantages, Logistics activities, Secondary data

Paper type Research paper

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/0959-0552.htm

Helena Carvalho was supported by a PhD fellowship from Fundacao para a Ciencia e Tecnologia(SFRH/BD/43984/2008). The authors would also like to thank Professor V. Cruz-Machado for hisassistance during the text review.

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Received 25 February 2011Revised 17 June 2011Accepted 11 September2011

International Journal of Retail& Distribution ManagementVol. 40 No. 2, 2012pp. 128-156q Emerald Group Publishing Limited0959-0552DOI 10.1108/09590551211201874

1. IntroductionIn the current business environment, where customer demand promotes high levels ofdifferentiation and products have a short life-cycle, organizations need to be innovative,not only in their own processes, but also across the processes of the whole supply chain.RFID is an innovative automatic identification technology, which identifies and gathersdata without human intervention, or data entry (Wyld, 2006). RFID has been deployed toimprove supply chain processes such as handling materials with better efficiency,managing assets more effectively, and improving availability of products (Reyes andJaska, 2006). The tracking of items (e.g. assets, containers, or reusable bins) has becomeautomated by the extensive use of RFID throughout the supply chain (Tajima, 2007). It isexpected that this technology will contribute to high levels of innovation in almost allsupply chain processes (Sheffi, 2004), as it is an important tool for organizations andsupply chains wishing to sustain their competitive advantage (Mehrjerdi, 2010). Visichet al. (2009) also suggest that RFID enables process innovation and supply chainredesign to achieve competitive advantage by increasing supply chain transparencythrough the dissemination of large amounts of accurate and real-time data to enhance thedecision making process. Access to shared information in the supply chain is at the heartof an RFID initiative (Boeck and Wamba, 2008).

Although commercial applications of RFID date back to the 1960s, the use of RFIDin supply chain management is relatively new. RFID deployment is diverse andgrowing in different sectors, for a variety of purposes. In Europe and the USA, RFIDhas been adopted by some major retailers. In 2003, the worlds leading retailers,including Metro Group in Germany, Marks & Spencer in the UK, and Wal-Mart in theUS, mandated the use of RFID in tracking supplies (Roberti, 2003). Since then, manyother retailers in the world have announced adoption plans, including Tesco in the UK,Coles Myer in Australia, and Mitsukoshi in Japan (Roussos and Enabling, 2006). Therapid increase in RFID users suggests a major research opportunity in the retailindustry (Sethuraman and Parasuraman, 2005). This technology it is now at a stagewhere there are potentially larger advantages from wider application, but barriers stillremain, requiring a model to enhance business and consumer advantages whileeffectively addressing security and privacy issues (OECD, 2006).

RFID has been deployed to improve supply chain processes such as:. handling materials with better efficiency;. managing assets more effectively;. improving availability of products; and. tracking items automatically (e.g. assets, containers, or reusable bins; Tajima,

2007).

The value of RFID technology is particularly visible in Fashion Supply Chains (FSCs),as the fashion business is characterized by a wide assortment of products, shortlifecycles, high seasonality, high volatility, high-impulse purchasing and complicateddistribution and logistics operations (Christopher et al., 2004; Castelli and Brun, 2010).Peterson et al. (2010) used the term fast fashion to describe a new business modelwhere the tendencies are fresh new products, shorter lifecycles and faster production.To Barnes and Lea-Greenwood (2010) fast fashion is a business strategy which aims toreduce the processes involved in the buying cycle and lead-times so as to get new

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fashion product into stores, in order to satisfy consumer demand at its peak. Thisbusiness model puts significant pressure on rapid delivery, high quality products, andlow prices for each supply chain segment. In the highly competitive retail environment,the availability of a certain product category (or a specific item) is a relevant source ofvalue to customers, since there are huge penalties for being out of stock of the currentseason must-have advertised items (Brun and Castelli, 2008). To respond to customerneeds, time compression and flexibility should be developed over the whole supplychain. Castelli and Brun (2010) also stress the need to align operations of different FSCmembers along the supply chain, enhancing information exchange through the use ofnew communication tools and process coordination practices.

The RFID technology it is now at a stage, where there are potentially largeradvantages from a wider application but barriers still remain. In this line, Ngai et al.(2008) considered that the barriers and critical success factors of RFID adoption areimportant issues that should be addressed in future studies. Curtin et al. (2007) alsopropose a RFID research agenda stressing the need of more studies on the followingareas:

. developing, adopting and implementing RFID;

. using, supporting and evolving RFID; and

. RFID impact.

Additionally, Lee and Ozer (2007) observe that a large gap exists between perceptionand reality of what is generally assumed to be the benefits engendered by the RFIDdeployment in supply chain. However, the majority of the adoption, use, and impact ofRFID studies have been limited to a single focal firm adoption setting and largely in theretailing sector (Wamba and Chatfield, 2009). According to Kappor et al. (2009) andNgai et al. (2008) there is a lack of studies that considers the RFID implementationdrawbacks in a supply chain management in-depth context. Therefore, this paperexplores the deployment of RFID technology in Fashion Supply Chain Management(FSCM) focusing on logistics activities. It investigates the real advantages,disadvantages and barriers perceived by companies belonging to an FSC thatdeploys RFID technology. The main research questions focused in this paper are:

RQ1. How FSC companies implement RFID technology? Which are thearchitectural characteristics?

RQ2. What are the logistics activities in which FSC companies deploy RFID?

RQ3. Which are the main advantages associated with RFID technology?

RQ4. Which are the main barriers and disadvantages associated with RFIDtechnology?

The paper is organized as follows. After the introduction, a brief explanation of RFIDtechnology design is presented. Then the context of RFID in the supply chain isexplored, examining the enhanced application of focused technology in FSC logisticsactivities. The research methodology and the data analysis, looking at some companiesbelonging to the FSC that use RFID, follow. After that, a conceptual model is proposedto illustrate the deployment of this technology in the FSC. Finally, some discussion ispresented and conclusions are drawn.

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2. RFID technology designRFID technology can be described as a wireless identification method, which contributesto improved communication capabilities of electronic information associated withphysical items (Modrak et al., 2010). It is composed by several elements: readers, tags,software, and security programs for the readers (Hingley et al., 2007). Tags can beclassified as either active or passive (Delichatsios et al., 2006; Jones et al., 2006). Activetags use a small battery, a microchip, and a small antenna built into them. The operatingfrequency of radio waves employed also varies. Active tags have a greater read/writerange than passive tags that are shorter range. Low-frequency RFID tags operate at 125to 134 kHz, for US and international use. High-frequency systems use 13.56 MHz.Frequencies of 866 to 960 MHz are used in UHF (ultra-high-frequency) systems, whilemicrowave systems operate at 2.4 to 5.8 GHz (Dipert, 2004).

Antennae are used in tags and readers, having a diverse range of forms andtechnical factors. Their size can vary from under a square centimetre to several squaremeters. Readers could come in four types: handheld, vehicle-mounted andpost-mounted and hybrid (Meyerson, 2007). The first three are dedicated to readingtags, active or passive. The fourth type can switch between active and passive modes.Handheld and hybrid readers are more expensive than the vehicle-mounted andpost-mounted readers. The reader reads all the tags within its read range in rapidsuccession. This automatic process reduces read times. In a field test in the UK, Marks& Spencer tagged 3.5 million bins with RFID tags. While it takes 17.4 minutes to read25 trays with bar codes on 36 dollies, RFID reduces the reading time to just threeminutes, representing an 83 percent reduction in reading time for each tagged dolly(Wilding and Delgado, 2004).

3. RFID in supply chainIn recent years there have been high investments in the development and improvementof RFID systems because of the important advantages that companies and supplychains can achieve by using RFID rather than bar codes. These advantages derivemainly from innovation in the identification process and also from the elimination needof manual work to scan items. Gaukler and Seifert (2007) explain that economiesobtained from RFID are fundamentally different from bar-coding economies: withbarcodes the label cost is low, but the incremental cost of each scan is high, since ittypically involves human labour and stoppages in the material flow; with RFIDtechnology, the tag and system cost is high, but positive returns are obtained from thecontinuous material flow (Hingley et al., 2007). Also new technology developments arecontributing to enlarge its fields of deployment and consequently its widespreadadoption by companies and supply chains. Examples of these are: integrating RFIDtechnology with EPC (Electronic Product Code) concept through mobile platform(Kwok et al., 2003); developing a knowledge-based Web Services architectureincorporating RFID tags (Sundaram et al., 2010); incorporating business processcontrol and automation into RFID-enabled applications (Zhao et al., 2010); anddeployment of e-kanban replenishment system based on passive high frequencyradio-frequency identification (RFID) technology (Bendavid et al., 2010). According toVisich et al. (2009) the major effects from the RFID implementation are automationaleffects on operational processes followed by informational effects on managerialprocesses.

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RFID systems also produce a high, rigorous and simultaneous capacity of reading(So and Liu, 2006) with potential to replace all scanning activities in the supply chain(Boeck and Wamba, 2008; Veronneau and Roy, 2009). This could become an importantsource of competitive advantage and innovation in the logistics field. It contributes toincreasing the efficiency in material movements. For example, it increases efficiency inloading and unloading of cargo, since warehouse operators do not have to manipulatean optical reader to collect data about the products that are being loaded or unloaded.Moreover, this technology allows information collection from moving objects (Bange,2006), creating visibility in material flows and a better coordination between supplychain entities. To Gaukler and Seifert (2007) the main advantages resulting from thedeployment of RFID in supply chains are savings in labour and time. In addition, morebenefits are derived from increased visibility (Lai et al., 2005). These advantages andothers are presented in Figure 1.

As it can be seen, the application of RFID technology in a supply chain can havemany advantages, namely, optimization efficiency (Hingley et al., 2007; Chen et al.,2010) and speed of processes and improvement of information accuracy (Sarac et al.,2010). However, each member of the supply chain does not benefit equally from RFID.The retailer has the highest cost savings, and the lost sales cost factor has a highimpact on the integrated RFID supply chain ( Jakkhupan et al., 2011). Also, according toSari (2010) when the level of collaboration between supply chain members is moreintensive, the uncertainty in customer demand is lower and when the lead-times alongthe supply chain are longer, the benefits gained from RFID deployment are greater.

On the other hand, RFID system implementation also has some disadvantages(Figure 1). Kapoor et al. (2009) had identified technical issues (e.g. privacy and securityviolations, computer systems bottleneck, and read error) and economic issues (e.g. costand obsolescence) that implementation of RFID in supply chain management mustovercome. Some of the main disadvantages associated with RFID derive from a set ofproblems that rises from its different contexts of deployment. Considering thedeployment of RFID in the supply chain context, one of the problems is related withenormous data volume that could render RFID event-driven supply chains (Ilic et al.,2010). According to these authors unbiased and quantitative understanding of thecharacteristics and extent of these data volume problems is necessary to identify andremove adoption barriers. Another problem could rise from its application in a globalsupply chain environment, where different partners sited in different locations may notallow RFID system to be used, because some supply chain members do not havecompatible network infrastructure in place (Lorchirachoonkul and Mo, 2010).

Beyond these disadvantages, some obstacles or barriers have been identified thatmake it difficult to deploy this innovative technology. RFID technology involvessubstantial investment and the return is only recuperated in a long time period (Kinsellaand Elliott, 2005). If a short-term return-on-investment (ROI) is calculated, it willrepresent a threat to its deployment since, according to Trunick and Williams (2005), thistype of technology has a high level of obsolescence and innovation. The main obstaclesidentified by companies for not using this technology are the high costs and also the lackof standardization and know-how (Albright, 2005). Lai et al. (2005) also refer the need toadjust current business models to new ones with high levels of trust and alliances amongsupply chain members, so that they can share information effectively. The frequentlycited barriers to the widespread adoption of RFID technology are shown in Figure 2.

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Figure 1.RFID advantages and

disadvantages across thesupply chain

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Figure 2.Barriers to RFIDdeployment

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4. RFID in fashion supply chain logistics activitiesThe RFID technology application is growing in various sectors and is being used forvery different purposes. The RFID has been object of academics attention fromwidespread fields of knowledge, namely in:

. warehouses and distribution centres (Meyerson, 2007);

. points of sales (Roussos, 2006);

. security applications in the transport (Kevan, 2004);

. demotic (Kelly and Scott, 2005);

. retailing (Azevedo and Ferreira, 2009b);

. e-business (Want et al., 1999);

. supply chain execution applications (Meyerson, 2007); and

. healthcare (Wu et al., 2011).

Curtin et al. (2007) technology can also be found in a set of different sectors such as:. automotive;. aviation;. pharmaceutical;. agriculture and forestry;. logistics;. tourism and leisure;. financial;. public sector; and. educational.

The fashion industry also could experience great benefits from RFID deployment(Azevedo and Ferreira, 2009a; Bottani, 2009). The fashion industry is characterized bylabour-intensive and multi-faceted processes with relatively simple technology (Azumaet al., 2009). Moreover, the fashion industry faces a high level of competitiveness andmarket turbulence (Fernie et al., 2010). To Barnes and Lea-Greenwood (2010), fastfashion is about the ability to react to trends and improve response times, and this isclosely linked to the concept of supply chain management and quick response(Birtwistle et al., 2003; Krishnan et al., 2010). The goals of supply chain management inthis kind of industry are delivering the fashion trends at the right time in the rightplace, with increased variety, affordability and customization, thus satisfying bothexisting and potential customers needs (Azuma et al., 2009).

To maintain competitiveness in the global market, fashion manufacturers should,on the one hand, shorten the lead-time of new product delivery, and, on the other,increase responsiveness to market changes, using approaches and tools to automatethe logistics processes and improve information availability (Bottani, 2009). In thiscontext, coordination of activities between actors along the supply chain is crucial.Many fashion manufacturers are pursuing downstream integration through directlyoperated retail networks or partnerships (Castelli and Brun, 2010). Also, fashionproducts are changing and inducing FSC members to introduce some internal changes.

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They must know how to deal with the following product characteristics (Christopheret al., 2004):

. short lifecycles;

. high volatility;

. low predictability; and

. a high level of impulse purchasing.

The deployment of RFID in the FSC enables access to real time item informationanywhere along the network, supporting the objectives of supply chain management inthis challenging context.

Hinkka et al. (2010) also discuss the characteristics of the FSC that make it suitable forRFID utilization. First, the product variety is high and the different products are difficult toseparate by sight (different sizes of the clothes). Another issue in the FSCM is the differentneeds of each supply chain member. Fashion retailers face the challenge of adaptingquickly and frequently to keep up with product changes and buying trends to meetcustomer needs (Bottani, 2009). From manufacturers point-of-view, since the productlifecycle of fashion items is very short, it is vital to ensure that the product is delivered tothe stores as quickly as possible (Bottani, 2009). In this regard, the ability of RFID to trackand trace items can streamline many activities along the supply chain. However, Hinkkaet al. (2010) state that RFID solutions are mainly designed for retailers purposes, eventhough the same tag can be used upstream in the supply chain. If the tag is attached earlyin the manufacturing phase, other supply chain members can use these tags, whichincrease supply chain visibility, and potentially reduces handling errors and confusion.

However, the deployment of RFID technology in FCSM is not limited to innovation initem tracking applications. So and Sun (2010) state that the next step in RFID technologyinnovation in FSCM is to merge RFID tags with other pervasive computing technologiesto achieve ambient intelligence (AmI) in real life. An example of this innovation isreferred to as the magic mirror, which has the ability to read an RFID tag in clothing inthe fitting room and display associated information such as availability and advice onaccessories (Soars, 2009). AmI is developed to enrich people lives and enhance thecustomer experience in shopping and commerce. It involves integrating tinymicroelectronic processors and sensors into everyday objects to make them smart.One of the latest smart AmI applications in retail is the intelligent mix-and-match ofclothing items, to help users choose colours and patterns that most closely resemble thestyle that they would like to portray, while, on the other hand, helping fashion retailers tomanage product items in the stores and inventory in the back store more efficiently.

The deployment of RFID in FSCM is expected to increase the efficiency of existingprocesses. In transportation and warehousing, RFID deployment enables substantialefficiency improvements by reducing labour, and increasing accuracy andperformance. Gaukler and Seifert (2007) discuss the usefulness of RFID in logisticsactivities across the supply chain, by reducing bottlenecks, enabling faster and lesscostly product movement, and improving inventory accuracy.

At the upstream level, Gaukler and Seifert (2007) argue that assembly andmanufacturing are activities that could benefit from RFID, as tags can be used in amanufacturing setting to identify the product that is being assembled, as well as theconstituent parts that are to be assembled into the product, allowing savings in labour

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costs and rework costs (due to fewer assembler errors). The advantages of RFID canalso found in the activities of receiving shipments, and in the picking and packingprocesses (Bensel et al., 2008).

In retailing, improvements in on-shelf availability of goods are expected. This isachieved by redesigning the shelf replenishment process, creating transparency on theactual inventory in store so as to improve inventory control (Bensel et al., 2008). Moonand Ngai (2008) argue that the use of RFID technology in retail can streamlinestocktaking operations, strengthen customer relationships, facilitate promotionalactivities and allow retailers to allocate resources more effectively.

However, these advantages are dependent on the level in the supply chain whereRFID tags are attached and the places where tracking can start. Hinkka et al. (2010)propose a framework to analyze the following tracking options in supply chains:

. in the retailers facilities;

. leaving the distribution centre (DC);

. arriving at the DC; and

. in the manufacturing phase.

These tracking options will determine the logistics activities and entities involved inthe deployment of RFID. RFID deployment impacts different activities in each stage ofthe supply chain:

. production;

. transportation and warehousing;

. point-of-sale; and

. in cross-company processes.

Figure 3 indicates the processes across the supply chain where RFID deployment isinvolved.

5. Research methodologyThe main objective of this research is to explore the deployment of RFID technology inFSCM, namely:

. How FSC companies implement RFID technology? Which are the architecturalcharacteristics?

. What are the logistics activities in which FSC companies deploy RFID?

. Which are the main advantages associated with RFID technology?

. Which are the main barriers and disadvantages associated with RFIDtechnology?

This study is focused on RFID deployment in companies belonging to FSC, because theworld of fashion is facing new challenges associated with different competitiveparadigms, the increase in the number of pieces and the reduction in the lot size, whichare obliging them to introduce innovative processes and technologies to improveresponsiveness and agility (Azuma et al., 2009). In this context, the RFID technologyhas being the answer found by many companies to face this unfriendly environment.

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Figure 3.RFID deployment inlogistics activities acrossthe fashion supply chain

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An inductive theory building approach, where theory emerges from empiricalobservations, was used (Spens and Kovacs, 2006; Golicic et al., 2005; Eisenhardt andGraebner, 2007). According to Golicic et al. (2005) the qualitative path begins with thedata collection; next the phenomenon is describe from the point of view of informants;and finally ends with building a substantive theory from the descriptive data,identifying the main variables and relationships among them. This approach wasselected to identify the main architectural characteristics, advantages, disadvantagesand barriers of RFID technology in FSC.

In order to build a theory and exploring RFID deployment in FSC, secondaryanalysis of published information from media news was used. Content analysis wasused as a research technique for making inference by systematic and objectivelyidentifying special characteristics or messages in a text (Krippendorff, 2003; Stockdaleand Standing, 2002; Harwood and Garry, 2003; Spens and Kovacs, 2006). In a first stepit is defined the scope of the data for analysis, typically text based-communications.The unit of analysis (such as word, sentence or theme) is defined and the data isclassified according to objective rules. The choice of documents that provide the sourcedata for a content analysis depends on their availability, accessibility and relevance(Krippendorff, 2003; Stockdale and Standing, 2002; Harwood and Garry, 2003; Spensand Kovacs, 2006).

The use of secondary data from media news had been used in several studies inRFID context, e.g. Visich et al. (2009) and Smart et al. (2010). However, as stated byDahlin et al. (2006) the large amount of data requires systematic filtering andorganization of data. The structured content analysis of media news was chosen as amethod for this study; since it offers the possibility to investigate implicit assumptions(latent content) alongside explicit statements (manifest content) in a text (Krippendorff,2003).

The data for this research study was gathered from analysis of secondary datausing published material from a broad range of sources including newspapers,conference proceedings, industry reports, white papers, press releases and books.Electronic searches of journal databases including Emerald, EBSCO, Proquest, andScience Direct were also undertaken. In addition, some specialized magazines on RFIDwere used, including RFID Journal and Logistics Today.

The selection criterion to a company be part of the study was: to belong to FSC, inparticular to be a manufacturer/supplier, distributor/logistics provider or a retailer; andto be recognized as a successful case in the RFID technology implementation. Inaddition the references should contain information related to the RFID architecturalcharacteristics, logistics activities, advantages, disadvantages and barriers. Therewere no restrictions on the company size, country or brands. Therefore, study resultswill be limited in the sense that specific organizational contingency variables are notcontrolled. The final sample is constituted by six companies. The sample comprisestwo companies belonging to the second tier (manufacturers/suppliers), other belongingto the first tier (distributor/logistics providers) and three focal companies (fashionretailers). As representative manufacturing companies, the Lawsgroup, and GerryWeber were analyzed. Jobstl Warehousing and Fashion Company were chosen toexemplify a logistics provider. The chosen fashion retailers are the Charles VogeleGroup, Throttleman and Kaufhof. Table I presents the profiles of these companies.

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As the references given in Table I indicate, all six companies have already beenpublished in detail. The study focuses on companies that are based in differentcontinents and countries. This makes it possible to a better understanding of RFIDdeployment in the FSC around the world. Also, all the companies studied have morethan 150 employees and have adopted an internationalization strategy, with some ofthem having stores, plants and warehouses in several countries.

As regards the sample analysis, only the information contained in the selected newswas used, therefore the results are biased by the available information. This meansthat this study does not cover all the possibilities for RFID systems in FSC. It coversonly the systems described in the sample. However, the aim of the research was to becomprehensive, not exhaustive. The objective is not to offer further insight into thesingle companies experience but to bring them together to get a wider picture and learnfrom the cross-case analyses (Seuring, 2009).

6. Model developmentThis section illustrates RFID deployment in FSCM. To achieve this, secondary datafrom sample of six companies belonging to different nodes in FSCs is analyzed. Thecompanies experience with RFID system is explored to identify the main architecturalcharacteristics of RFID system used, together with advantages, disadvantages, andbarriers.

6.1 RFID design in the FSCAs pointed out in Section 2, there are many different designs of RFID systems. A briefdescription of the main features of the RFID systems deployed by the case studies canbe found in Table II.

As can be seen in Table II, the architectural characteristics of RFID deployed by thecase studies companies are quite different. They use different frequencies; the locationof interrogators also differs from workstation (Lawsgroup), containers ( JobstlWarehousing & Fashion), stores (Charles Vogele Group) and distribution centres(Throttleman).

6.2 RFID deployment in FSC logistics activitiesIn the world of fashion retailing, the initial process of a collection increasingly plays astrategic role in shaping events that eventually determine invoicing. When the numberof pieces increases, it is critical that companies find new forms to become theirprocesses more agile and avoid delays in the reception of pieces in warehouses andremove bottlenecks in the launching phase of a collection. The deployment of RFIDmakes possible a better synchronization among supply chain members. In the researchcase studies several factors are highlighted as main enablers for RFID deployment,including the improvement of product quality and logistics efficiency, and informationquality (Gerry Weber), as well as the replacement of manual data-capture processes(Lawsgroup).

RFID technology has been deployed in different ways in various contexts. Inrelation to the FSC that is the focus of this research, it has been used in differentlogistics activities (Table III): shipping, tracking of raw materials, semi-finishedcomponents and finished apparel, collecting the finished goods, handling, trackingcontainers, tracking products from plant to store, and receiving, monitoring, and

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Company RFID design

Manufacturers/suppliers

Lawsgroup High-frequency tagsInterrogators are located at each workstation to read thesmart cards, and also scan a smart card assigned to eachworker as an ID badgeIT department developed the RFID system in-house andhas integrated it with its Enterprise Resource Planning(ERP) system

Gerry Weber All sites involved, including the stores, are equipped withmobile or stationary RFID readersReusable tags which combine UHF EPC gen 2 transponderwith EAS (Electronic Article Surveillance) functionality areused to track the merchandise into the stores where the tagwill be removed at the check-outRFID is used to track all tagged objects on their way to twodedicated department stores via a distribution center

Distributor/logistics provider

JobstlWarehousing& Fashion

A hybrid solution that uses automated real-time locatingsystem to monitor data in local areas such as warehousesand customer sites, and semiautomatic wide area on theroad event notification to ensure complete, closed-loopsupply chain visibilityThe solution consists of active RFID tag transmittersattached to every container in the fleet, magnetic exciterspositioned at client dock doors, and a local infrastructure ofwireless sensors covering more than 20,000 square meters

Fashion retailers Charles VogeleGroup

Checkpoints RFID readers are installed on shelves at thestores (to track which items are available in the store front),as well as in fitting room (to monitor how many itemscustomers bring in with them, and how many arepurchased)

Throttleman The garments with the RFID tags attached are packed inboxes and shipped from the manufacturer in India to theDistribution Center (DC) in PortugalWhen the boxed garments arrive at the DC they are placedon a conveyor and sent through the tunnel interrogator thatcaptures the tag ID numbers with an accuracy of 99.9percent, and sends that data through a wired LANconnection to the retailers software system. The softwarethen matches those numbers with the advance shippingnotice, confirming that the correct items have been receivedThrottleman uses the Smart labels in 80 percent of itscollection

Kaufhof A high frequency system for RFID at the unit and itemlevel was selectedA combination of the standardized European ArticleNumber (EAN) and proprietary product codes is usedThe frequency range of 13.56 MHz is used for logistic unitsand itemsCredit card sized RFID transponders and readers were usedat a reading range of approximately 1.5 meters

Table II.RFID design in theresearched companies

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Table III.RFID deployment infashion supply chain

logistics activities

Contribution ofRFID technology

143

sorting of merchandise. Although the tagging process can happen in different phases(production and transportation), most of the companies refer the tagging process atproduction. Also, the tags are read mainly at the distribution centres and stores.

6.3 RFID advantages in FSCMWith reference to the advantages associated with RFID technology, as can be seen inTable IV, the one recognized by almost all the companies is internal inventory control.That is they have fewer stock outs. This advantage is highlighted by all themanufacturing companies and fashion retailers. This same advantage can be found inFigure 1, but by a different name Decreased stock levels, Decreased stock outsand Improved inventory management. The logistics provider ( Jobstl Warehousingand Fashion) does not refer this benefit, probably because it is not one of its majorconcerns, but is a preoccupation of their customers. Another advantage that deserves aspecial attention is the cost saving. This was identified by companies in the threefashion supply chain levels:

(1) manufacturers;

(2) logistics providers; and

(3) fashion retailers.

In spite of the high cost of investment required and some doubts about the ROI, RFIDtechnology makes it possible to achieve considerable cost savings. The JobstlWarehousing and Fashion Company estimate that it makes a 20 percent cost saving asa result of increased container utilization after the deployment of RFID (WhereNetCorp., 2007).

Others advantages mentioned by the case study companies are reduction inlead-time and increased visibility. The case of Throttleman Company illustrates thelead-time reduction. The Portuguese fashion retailer has reduced the time items spendin the supply chain by seven to five days. A quick identification of products as theyarrive from the manufacturer in India ensures that the right items are rapidly shippedto stores in Portugal and Spain. After the implementation of this solution, theperformance of the reception lead-time was improved. Before this, the average value forthis indicator was 4.97 days, while after RFID deployment it reached an improvedvalue of less than 24 hours (Azevedo and Ferreira, 2009a).

Also, increased visibility was attributed to the deployment of RFID by logisticsproviders, especially the one associated to inventory (Figure 1). The reduction inlead-times was identified in the literature, but only indirectly, as represented by thevariable Quicker collection of data. Although in this research only one logisticsprovider is analyzed, that company was the one that identified most advantagesassociated with RFID deployment.

6.4 RFID disadvantages and barriers to deployment in FSCMOver and above the set of advantages associated with RFID technology, a number ofdisadvantages and barriers have also been pointed out (Table V). The maindisadvantage attributed to RFID technology is its cost. This is composed by the costassociated with the infrastructure and software system and, also, the unit cost of tags.In the case of Throttleman, the investment in the entire RFID project was relativelylow, not amounting to even six digits. However, the major cost was that associated

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fashion supply chainmanagement

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Table V.Disadvantages andbarriers to RFIDtechnology deployment infashion supply chainmanagement

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with the tags, since it costs four times as much as traditional bar codes (Azevedo andFerreira, 2009b). The fashion manufacturer Gerry Weber also identified the systemcost as a disadvantage. The cost of tags is recognized as an important disadvantage byGerry Weber, Kaufhof, and the Throttleman company.

These disadvantages associated with RFID technology are the reasons why morecompanies are not using it. However, there are also some barriers that make its morewidespread use difficult. Among the barriers identified in Table V, integration withcurrent processes and change management are identified by more than one company.In almost all cases, the introduction of this technology requires process reengineeringin order to reach the maximum potential and efficiency of the technology. This is notalways welcomed by companies, and especially not by their employees.

6.5 Model proposalAfter the analysis of the six companies experience with RFID technology, a model isproposed in an attempt to illustrate some peculiarities of this technology deployment inFSC (Figure 4).

As can be seen in the model, designed from the exploratory analysis of the casestudies, the FSC logistics activities where RFID is currently used are shippingoperations, tracking of raw materials, semi-finished components and finishedgarments, collection of finished goods, handling processes, tracking containers,tracking products from factory to store, receiving operations, monitoring, and sortingof merchandise. Also, the process of tagging is in most cases developed at productionand tag reading occurs at distribution centres or at stores.

Figure 4.Conceptual model forRFID deployment infashion supply chain

management

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The main barrier identified to the deployment of RFID is the integration with currentprocesses. The costs associated with the technology are the main disadvantagehighlighted by the analyzed companies. Apart from this disadvantage, it is interestingto note that the opportunity for cutting costs is also an important advantage pointedout by companies. In addition, they also recognize that improvements in internalinventory control, reduction in lead-times and increase in visibility across the wholeFSC are also important advantages.

7. Discussion and conclusionsRFID technology is an innovative technology that has been widely adopted because ofthe huge potential it offers companies, when considered both individually and as partof an integrated supply chain. The drive toward RFID deployment is being reinforcedby compulsion from large retailers such as Wal-Mart and Target, and the Departmentof Defence of many countries, who require all suppliers to implement this innovativetechnology.

RFID technology has received considerable attention from academics andpractitioners because of its potential for innovation in diverse processes such asmanufacturing, transportation, distribution, information systems, store operations,and sales. The increased use of RFID has been praised by different kinds of companies,but especially by fashion retailers, because of the advantages arising from its use. Thefashion industry has unique requirements since retailers are locked in a battle movingkey fashions from the design table to the store shelves as quickly as possible. In thiscontext RFID technology offers logistics advantages to meet this challenge.

Both the theoretical analysis and the secondary data analysis show that thedeployment of RFID in FSCM, despite the potential advantages, must overcome thebarrier of integration with existing systems. Moreover, the cost of RFID systems, inparticular the tag cost, must be reduced to a more acceptable level, so item leveltagging can become a reality. The advantages result mainly from the innovation inprocesses, leading to efficiency and effectiveness improvements in logistics activities.All activities concerned with item movement and tracking (packing, shipping,handling processes, receiving operations, and inventory replenishment) are directlyaffected by the deployment of RFID technology in the FCS.

There are several academic and managerial areas where this study makes animportant contribution. It provides an empirical investigation on the deployment ofRFID in FSCM, examining different companies at different SC levels and in differentgeographical locations. The main theoretical contribution of this model is to exploreRFID technology deployment in the FSCM from the strategic point of view since itenhances the contribution of RFID to Fashion sector reach key competitive priorities,such as:

. faster logistics activities;

. greater quality of products;

. cheaper products; and

. higher responsiveness to new customers needs.

So, this model is different from the ones suggested by Wamba and Chatfield (2009) andChuang and Shaw (2007). The first one develops a contingency model for creating

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value from RFID supply chain projects in logistics and manufacturing environmentsfocusing on IT-enabled business transformation, leadership and organizationallearning fields and focusing on third-party logistics service firms seven-layer supplychain RFID projects. Otherwise, Chuang and Shaw (2007) suggest a functional RFIDintegration model, considering business unit RFID integration and inter-companyRFID integration to improve functional process efficiency and effectiveness exploringdifferent types of supply chain like kitchen manufacturer (Kitchen World), IT provider(HP) and retailer (Metro Group). Also, the model suggested in this study is supportedon the most relevant RFID literature with a special focus in the FSC but considering thereal life experience of fast fashion supply chain users and technology providers.

Moreover, the advantages and disadvantages associated with RFID deploymentacross the FSC, the main barriers to its introduction, and the FSC logistics activities inwhich RFID is most commonly deployed are identified and examined. This representsan important contribution for companies in this industry, so that they can gain aninsight into the deployment of RFID through the studied companies. It also provides abasis on which new companies that are thinking on introducing this technology canplan to overcome the barriers of this technology, maximizing its advantages andminimizing its disadvantages.

Despite the proposed model had been develop in the FSC context, the results are alsoconcordant to the ones found by other researchers in dissimilar contexts, for examplein healthcare sector. In FSC the main logistics activities in which the RFID is deployedare related to items tracking. Studies on healthcare sector (e.g. Wu et al., 2011) alsopoint out the advantages of item tracking, but in this case instead of fabrics andgarment, the items are patients, bold-bags, equipment and staff and medicationtherapy. In the healthcare sector the RFID main disadvantages are also related with thesystem cost and the difficulties in the interoperability with other IT systems representa barrier (Vanany and Shaharoun, 2008). Therefore, the proposed model could beapplied to other sectors since all of them are doing an effort to adapt to the newscompetitive priorities: low cost, quality, delivery speed and flexibility (Chi et al., 2009).The main RFID advantages identified in the proposed model, internal inventorycontrol and cost savings are important enablers to help different kind of companiesand respective supply chains reach these competitive priorities: the inventory controlhelps companies and supply chain to avoid inventory stock outs and minimizing costsassociated with capital invested in it. Also inventory control could contribute to avoidnon-quality products through more selective suppliers sourcing (Sana, 2011). Also, thelogistics activities identified as using RFID technology gives companies and supplychain insights on the kind of operational processes that could be improved thanks to it.

After the development of this study, it is suggested that future research shouldempirically test the validity of the proposed conceptual model derived from the casestudies. In addition, future studies should collect large samples of empirical data on theFSC to provide a more extensive analysis of the RFID deployment in this kind ofsupply chain.

The study of RFID technology presents a promising potential for research toaddress a host of issues that need more research in order to foster its diffusion andfacilitate its large-scale adoption and implementation within fast moving fashionsupply chains. There are various theoretical and managerial issues to be studied,which derived from this study, such as:

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. As one main barrier identified by the researched organizations is the integrationwith current process. This issue was also proposed by Curtin et al. (2007) as akey issue in the RFID research agenda. Therefore, it will be interesting to suggesta new model joining the approach followed in this study with the one suggestedby Chuang and Shaw (2007) in order to enlarge the scope of this study andconsider also the business unit RFID integration and inter-company RFIDintegration factors in RFID deployment among the FSC organizations.

. Another barrier identified is the change management. It represents a hot-topicfor future researches to analyze the patters and dynamic of RFID adoption withinthe companies (Curtin et al., 2007).

. Since, one of the main disadvantage pointed out by case studies is the costassociated with RFID technology implementation, considering that the costcomponent is related also with the infrastructure and the software system, it willbe useful to study the influence on costs from using Cloud Computingarchitecture to collection and use data from many different supply chain partnerssited all over the world. In particular, to investigate if a cloud computingarchitecture solution will decrease the real cost of RFID technology andovercome the main barrier to its widespread deployment.

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Further reading

Atkinson, W. (2004), We-based RFID hype or glimpse of the future, Apparel, Vol. 54 No. 6,pp. 24-8.

Baars, H., Gille, D. and Struker, J. (2009), Evaluation of RFID applications for logistics:a framework for identifying, forecasting and assessing benefits, European Journal ofInformation Systems, Vol. 18 No. 6, pp. 578-91.

Bear, Stearns and Co. (2003), Bear, Supply-chain technology: track(ing) to the future, EquityResearch Report, available at: www.bearstearns.com/bscportal/pdfs/research/supplychain/technology_rfid.pdf

Borck, J. (2006), Tuning in to RFID, InfoWorld, Vol. 28 No. 16, pp. 31-6.

Butcher, T. (2007), Radio frequency identification: an enabler of agile supply chaindecision-making, International Journal of Agile Systems and Management, Vol. 2 No. 3,pp. 305-20.

Gunther, O. and Spiekermann, S. (2005), RFID and the perception of control: the consumersview, Communications of the ACM, Vol. 48 No. 9, pp. 73-6.

Jilovec, N. (2004), EDI, UCCnet and RFID Synchronizing the Supply Chain, 29th Street Press,Loveland, CO.

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Miragliotta, G., Perego, A. and Tumino, A. (2009), A quantitative model for the introduction ofRFID in the fast moving consumer goods supply chain: are there any profits?,International Journal of Operations & Production Management, Vol. 29 No. 10, pp. 1049-82.

Murphy-Hoye, M., Lee, H.L. and Rice, J.B. (2005), A real-world look at RFID, Supply ChainManagement Review, Vol. 9 No. 5, pp. 18-29.

Smith, A. (2005), Exploring radio frequency identification technology and its impact on businesssystems, Information Management & Computer Security, Vol. 3 No. 1, pp. 16-28.

Soon, C.-B. and Gutierrez, J. (2008), Effects of the RFID mandate on supply chain management,Journal of Theoretical and Applied Electronic Commerce Research, Vol. 3 No. 1, pp. 81-91.

Veeramani, D., Tang, J. and Gutierrez, A. (2008), A framework for assessing the value of RFIDimplementation by Tier-one suppliers to major retailers, Journal of Theoretical andApplied Electronic Commerce Research, Vol. 3 No. 1, pp. 55-70.

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About the authorsSusana Garrido Azevedo (PhD in Management) is Assistant Professor of Logistics andManagement at University of Beira Interior (UBI) Portugal. Her research interests includelogistics, ICT in logistics (RFID) and supply chain management. She has published in severalinternational journals and has published books in the areas of operations management, logisticsand competitiveness. She has also served as reviewer for many journals and internationalconferences. She has published in a number of international journals and is Associate Editor ofThe International Journal of Management Science and Information Technology (IJMSIT). SusanaGarrido Azevedo is the corresponding author and can be contacted at: sazevedo@ubi.pt

Helena Carvalho (MSc in Industrial Engineering) is a Teaching Assistant of IndustrialEngineering at Faculdade de Ciencias e Tecnologia, Universidade Nova de Lisboa, Portugal. Sheis currently developing her PhD thesis in the domain of lean-and-resilient manufacturingsystems and has a special interest in the area of supply chain management, lean, agile, green andresilient management paradigms, and system modelling. She has made a number ofpresentations in international conferences and published in proceedings related to these topics.She has also published in several international journals and is an International Review BoardMember of the International Journal of Green Computing (IJGC).

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