Abstract
In recent years the print industry has been facing constant and increasing competition from the double onslaught of the Internet and the proliferation of television channels. In order to survive as a viable industry, print enterprises must streamline and exploit up-to-date economizing measures. A key cost element in the print industry is paper, representing between 20% and 30% of total printing expenditures. Thus, any improvement in the operational efficiency of paper reel management has the potential of yielding considerable cost savings. It is in this context that we analyze the effect of enhancing the available paper reel supply chain information through the use of semi passive Radio Frequency IDentification (RFID) technology. Focusing on the printing house, we develop both simulation models and formulas that forecast savings from having better information. Thereafter we implemented the system and compared the forecasts to actual savings. Using standard economic evaluation techniques we unequivocally show the economic imperative of introducing semi passive RFID technology. Even though this study was carried out in a specific printing house, we argue that its implications are far wider, affecting other industries.
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