Exploring the use of RFID in SCOR-based Supply Chain within ERP environment: A case study for stamps distribution

Abstract

Proper supply chain management (SCM) provides material control on product information and financial flows. A model used in many industrial sectors that allows to manage the supply chain and evaluate its redesign, is the SCOR (Supply Chain Operations Reference). This research proposes a framework that integrates the SCOR model in the Enterprise resource planning (ERP) system, for a Supply Chain based on RFID (Radio Frequency Identification). The methodology is presented through a case study on the new distribution of Italian postal stamps on the Italian. Through the AS-IS situation we explain the operation of the supply chain in each unit and define the information that could be collected through RFID. The RFID-enabled supply chain based on the SCOR framework involves shorter delivery times and greater product traceability, as accurate real-time information has been shared between partners. Each process of the SCOR model is analyzed and customized with respect to the RFID application, with a deep analysis of the improvements that can be achieved thanks to this technology. The SCOR model also involves a selection of performance measurement indicators used to monitor and manage the supply chain. The adoption of the RFID-based SCOR model, together with the definition of standardized Key Performance Indicators (KPIs), enabled rapid implementation of ERP software. The case study also produced some best practices such as stamp tracking and a specific warehouse layout configuration that resulted in better performance in operations management.