The Impact of Rfid and Epc Network on Bullwhip Effect in the Italian Fmcg Supply Chain

Introduction The adoption of RFID technology [1] for products identification is experiencing an increasing diffusion in the logistics pipeline, where RFID systems are expected to have a major impact on the efficiency of the whole supply chain. Commonly quoted benefits of RFID encompass increased processes automation, accuracy, and labour efficiency [2]-[3]. There are several reasons for this diffusion, such as, among others, the capability of RFID tags to provide more information about products than traditional barcodes and to avoid manual operations required to read the barcodes [4]-[7], thus improving automation [8]-[9]. Similarly, exploiting EPC Network for data sharing enables users to find on the internet data related to a specific EPC and to gain access and retrieve those data. Through this real-time data sharing mechanism, companies have broad and plain visibility over logistic flows and can leverage this information both to optimize logistics processes and for supply chain management [10]. As discussed by Prater et al. [3], for the specific case of the grocery retailing, the availability of realtime information throughout the supply chain is regarded as the main benefit of EPC Network, although additional outcomes can be found in increased inventory visibility, stock-out and safety stocks reduction, real-time access and update of current store inventory levels, automated Proof Of Delivery (POD) [11], availability of accurate Points Of Sale (POS) data and finally better control of the whole supply chain [12]. Due to easy data capturing and sharing and real-time visibility they bring in the supply chain, RFID technology and EPC Network provide companies with updated retail data, thus allowing improved sales forecasts [13]. Hence, they are also suggested as viable tools to reduce the overall supply chain inventory waste caused by the bullwhip effect (BE) [14]-[15].