The impact of Auto‐ID on logistics performance

Abstract

PurposeThe purpose of this paper is to examine how logistics performance is affected by the use of different identification technologies and practices for utilising the tracking data.Design/methodology/approachThe paper uses the survey method. The survey instrument is developed in co‐operation with an expert group consisting of both researchers and industry representatives. The data are analysed using multivariate techniques and hypothesis testing.FindingsThis paper indicates better logistics performance for companies using radio frequency identification (RFID) technology, while no significant differences can be seen for companies using Auto‐ID in general. In terms of registration, best‐in‐class firms have more identification points along their supply chains compared to other firms. Best‐in‐class firms also seem to have more extensive sharing of tracking data with supply chain partners, both upstream and downstream, and in terms of frequency and scope, which contributes to superior logistical performance.Research limitations/implicationsTo provide a more robust scientific justification of the survey results, in‐depth case studies should be carried out. Further studies are needed to verify the links between RFID and logistics performance.Practical implicationsThe findings may enable managers to estimate the potential of using identification technologies and learn of practices which may enable their organisations to improve logistics performance.Originality/valueThis paper presents empirical links between different identification technologies, attributes of the tracking system, use and sharing of tracking data and logistical improvements.