Service performance improvement by using RFID-enabled goods traceability data: a case study

Abstract

This paper presents a case study where service performance of a retailer can be improved not by directly measuring the service performance and solving problem; but by measuring a substitute performance indicator that corresponds to the service performance and solving the problem. As a substitute indicator, we choose a correlation coefficient between sold item distribution and sales floor inventory distribution. Since measuring service performance continuously in stores has lots of difficulties because of the nature of services, the services of the retailer have been difficult to improve. However, since the move of goods inside a store is captured easily by using automated data capturing (ADC) technologies, the service performance could be continuously improved if the goods traceability data is used for this purpose. In this study, we show the effectiveness of our approach with a radio frequency identification (RFID) application in a men's business shirt store of a department store.