Assessing the Impact of RFID on Return Center Logistics

30 Pages Posted: 2 Sep 2006

See all articles by Nishtha Langer

Nishtha Langer

Lally School of Management, RPI

Chris Forman

Cornell University - Charles H. Dyson School of Applied Economics and Management

Sunder Kekre

Carnegie Mellon University

Alan Andrew Scheller-Wolf

Carnegie Mellon University

Date Written: June 2006

Abstract

RFID technology is being widely embraced in the supply chain, by manufacturers, retailers, and logistics firms. Although its advocates include retail giants like Wal-Mart, not everyone is enthusiastic about its benefits. It is not clear whether RFID is a boon or a curse to the supply chain: the growing market size of this technology may just be an issue of compliance.

With a view to establishing the real benefits of RFID, we conducted a field study with GENCO, a third party logistics company that deployed RFID at one of its outbound logistics operations with a goal to reducing customer claims. Our analysis found that the RFID implementation had a significant impact on the outbound process: The intensity of claims incidence fell substantially after RFID deployment. After controlling for other factors in our model, we confirm that RFID was a key factor that contributed to the positive outcomes at this return center. The current study underscores the potential of RFID for today's businesses.

Keywords: RFID, business value, process level analysis, reverse logistics, supply chain

Suggested Citation

Langer, Nishtha and Forman, Chris and Kekre, Sunder and Scheller-Wolf, Alan Andrew, Assessing the Impact of RFID on Return Center Logistics (June 2006). Available at SSRN: https://ssrn.com/abstract=927931 or http://dx.doi.org/10.2139/ssrn.927931

Nishtha Langer

Lally School of Management, RPI ( email )

110 8th St
Troy, NY NY 12180
United States
+1 (518) 2764414 (Phone)
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Chris Forman

Cornell University - Charles H. Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

Sunder Kekre (Contact Author)

Carnegie Mellon University ( email )

Pittsburgh, PA 15213-3890
United States

Alan Andrew Scheller-Wolf

Carnegie Mellon University ( email )

Pittsburgh, PA 15213-3890
United States

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