12 Order Fulfillment Along the Supply Chain

RFID Applications in the Supply Chain Around the Globe

Many potential and actual applications exist in enterprises using RFID (e.g., see RFID Journal). The following are examples of how RFID is used in the supply chain. For a comprehensive review see Reyes (2011) or the RFID Journal (rfi- djournal.com/case-studies).

RFID at Starbucks

As Starbucks expands its range of fresh foods (such as salads, sandwiches, and the like) avail- able at its outlets, the complexity and demands of managing this supply chain increase. Keeping the food fresh depends on keeping it at a steady cool
state and in ensuring timely delivery. Starbucks is requiring its distributors to employ RFID tags to measure the temperature at the delivery trucks. These tags are programmed to record the temper- ature inside the truck every few minutes, and on return to the depot this temperature data can be downloaded and analyzed carefully. If there are unacceptable readings (e.g., the temperature is deemed to have risen too high), efforts are made to determine the cause and remedy the problem. This can then cause a redesign of critical business processes with regard to the transportation and handling of food. As RFID technology matures, it is conceivable, that in the future, the tags them- selves will be able to detect variations in tempera- ture and send a signal to a thermostat to activate

Figure 12.4 RFID at Walmart and its suppliers: the seven-step process (Source: Drawn by E. Turban)

refrigeration fans within the truck. For details, see Xue (2010).

RFID at Deutsche Post (Germany)

Deutsche Post owns six million shipping con- tainers that it uses to hold and transport about
70 million letters and other items that pass through its distribution centers daily. In order to process these crates, Deutsche Post prints in excess of 500 million thick paper labels, all of which are thrown away after a single use. It was environmental concerns, rather than purely eco- nomic ones, that drove Deutsche Post’s RFID initiative.
Deutsche Post uses passive RFID tags with a bi-stable display, meaning that the text displayed remains on-screen after power is removed and does not change until power is restored and the text is rewritten by an RFID interrogator. Tags on the crates must be readable from all angles and in all types of weather, requiring a robust tag.
Furthermore, the tags need to last about five years in order for the application to be finan- cially viable.
Deutsche Post developed a custom tag and RFID reader, and uses specialized software in this innovative application. Several other post offices around the world use RFID (e.g., Canada).

RFID at Atlantic Beef Products (Ontario, Canada)

Cow’s ears are tagged with RFID tags. After a cow is killed, its ear tags are scanned for food traceability. The carcass goes onto two leg hooks, each equipped with an RFID chip. They are synced to each animal’s database record. The RFIDs replace bar codes, which could get con- taminated with E. coli on the slaughter floor. The RFID helps track the movement of each cow and the meat produced at any time. The system won a gold medal from the Canadian IT organization. For details, see Makepolo (2014).

Case 12.3: Stanley Black & Decker’s Collaborative Success with Lowe’s and Home Depot 583