Today, the implementation of RFID systems is a work in progress. Over the past few years, many companies have planned implementation efforts. As has been the case with previous technology innovations, many managers appear to think that older business rules do not apply. Instead they search for a ‘secret code’ that they believe will allow them to put the new-technology initiative on a faster track.
Experience, however, shows that such secret codes are nowhere to be found. Instead, the most successful RFID implementation programmes use sound project-management techniques in conjunction with reliable operations-management practices. The techniques themselves are tried and true – and not at all unique to RFID technology.
Develop a clear strategy with top management support: Like any project that promises to add business value, an RFID implementation calls for a clear strategy that enjoys the consistent commitment and support of senior management.
It’s important that managers select projects that meet criteria that support company objectives and provide a positive financial outcome. Management therefore needs to examine the business drivers for and against RFID – incIuding the financial analysis and qualitative issues at hand. Business drivers that favour RFID adoption include meeting customer mandates, exchanging information for inventory, improving business processes, and reducing demand uncertainty.
Implement RFID as a project: Once management has fully bought into the strategy, the RFID implementation must be approached as a project with a beginning, middle and end. This approach requires careful planning in terms of time, resources, costs, communication, and related projects – especially at the pilot stage. A successful implementation calls for project-management practices, including contingency planning, scheduling, contract management, resource management, cost control, performance and quality management, and project documentation.
A well-executed RFID pilot is critical to the overall success of the implementation. Even though pilot programmes almost always start small in terms of number of cartons or pallets that are tagged and suppliers and locations that are involved, they still need to be designed around the right applications.
Managers should carefully select the products, SKUs, attributes and locations used for the pilot.
Manage a gradual rollout: After successfully completing the pilot, the RFID programme should be rolled out to include all products. Again, careful planning and implementation are of paramount importance. Yet at the same time, the company needs to remain flexible as the rollout proceeds.
Should a pilot programme fail, it is imperative that another one be launched based on the feedback from the unsuccessful attempt. Marketplace pressures and other demands should not force the company to rollout the technology without successes at the pilot stage. It is important to note that the implementation is more likely to succeed if RFID projects are contained within the organisation and if they include technology requirements with proven RFID capabilities.
Continually improve procedures: Most of the publicised RFID implementations utilise the ‘slap-and-ship’ approach, whereby the tag is manually ‘slapped’ onto the carton or pallet just prior to leaving the warehouse. The key to a successful RFID programme, however, is to identify the areas where RFID can do the most to help streamline current processes. A typical starting point is to see how RFID could improve inventory flows across the extended supply chain, using value-mapping techniques before implementing the technology – not after.
Work on negotiation and build trust among flexible partners: The negotiation processes among supply chain partners should be fair and flexible. It should address the needs of all parties, optimise the entire RFID system, and create a ‘win-win’ solution for all. Partners should use project-management best practices for negotiation including separating the people from the problem, focusing on interests rather than positions, seeking alternatives for mutual gain, and insisting on objective criteria.
Utilise a cross-functional team: The best implementation results come from leveraging cross-functional teams that comprise personnel who have strong technical skills, are politically sensitive, have a strong problem and goal orientation, and are available and motivated to work on the project. The teams should include RFID suppliers, middleware experts, and staff from operations, logistics, purchasing and information systems. They must then be moulded into a cohesive team, united by a common vision.
Fully develop the technology throughout the supply chain: Many RFlD projects have only implemented tagging from the DC to the retailer. However, manage¬ment should fully implement the technology for the entire supply chain system, which includes hardware and software – RFID tags, electronic seals, chips, printers, antennae, readers, data aggregation, filtering systems, middleware, tracking devices, network support and information system infrastructure at the platform, network and application layers. The goal for full integration is to create an information system that can handle all incoming RFID data and transform it into meaningful transactions in real time. To do this, the integration needs to align information technology considerations with organisational and business processes.
Project management approach needed: If there is to be one key lesson that comes out of recent studies, it is that RFID implementation is truly a project. And as such it invokes the planning, organising, directing and controlling of company resources to complete specific goals and objectives over a stated period.