Gino Ferretti

The impact of RFID technology on logistics processes of the fashion industry supply chain

This paper aims at quantitatively assessing the impact of radio frequency identification (RFID) technology and electronic product code (EPC) system on the main processes of the fashion industry supply chain. A fashion supply chain, composed of a distribution centre (DC) and a retail store (RS), is examined. A questionnaire survey and several site visits were performed to collect both quantitative and qualitative data related to current (AS IS) supply chain processes of each player investigated. Starting from data collected, re-engineered (TO BE) procedures were designed, hypothesising the implementation of RFID technology. Grounding on the gap between AS IS and TO BE scenarios, a detailed investment evaluation was performed in order to assess the profitability of RFID and EPC implementation in the fashion supply chain, both for each player and for different supply chain configurations. Results show that RFID and EPC implementation is profitable under several scenarios examined, and that the profitability ...

Experimental evaluation of business impacts of RFID in apparel and retail supply chain

The purpose of this paper is to present and quantify the business benefits that can be achieved through the deployment of Radio frequency identification (RFID) technology in the apparel and fash- ion supply chain. The goal is to provide quantitative results regarding logistics and store processes, as well as different areas and processes that could be affected by RFID, including both operational aspects (e.g. shipping and receiving, inventory counts, etc.) and strategic issues related to garments try-ons, store replenishment, inventory management, customer satisfaction and sales volume. Results presented stem from an experimental campaign carried out in Italy in 2010. We applied RFID UHF gen2 tags to approximately 20,000 garments of the spring/summer and fall/winter 2010 collections, shipped from a distribution centre to a retail store of a major Italian fashion brand. We monitored the flow of goods through the logistics pipeline by means of mobile and fixed RFID readers, and collected the related data. Through proper elaboration of those data, we provided an estimate of the RFID benefits, both at operational and strategic levels. The main findings of our research have to be found in a punctual assessment of savings and increase in sales volume that can be achieved in the apparel supply chain through RFID deployment, with a special focus at the store level. Specifically, RFID is proven to provide benefits at operational levels through increased visibility of materials flows, labour reduction and higher accuracy of the store operations; moreover, it is demonstrated that the greatest contribution of RFID lies in its ability to provide new data, which allows consistently increasing sales and improving customer satisfaction.

Reducing out of stock, shrinkage and overstock through RFID in the fresh food supply chain: Evidence from an Italian retail pilot

Abstract. The paper shows how to leverage RFID technology in fresh fast moving consumer goods(FMCG) industry, and, in particular, to optimally manage stock levels on shelves, shelves replenishment,and shrinkage prevention for fresh perishable products.We deployed a pilot project on a FMCG retail supply chain, encompassing a distribution centre andtwo stores of a major Italian retailer. About 60 products have been RFID tagged at case level. We real timetracked cases of products for 4 months, through the distribution chain all the way to the stores, where theRFID deployment made it possible to punctually monitor shelves stock levels, backroom stock levels andproduct shrinkage.We demonstrate that the out of stock (OOS) problem is just one piece of a broader picture, that is shelvesstock optimization. The higher the stock level on the shelves, the lower the need for shelf replenishment,and thus the likelihood of an OOS. However, the capital holding costs and the risk for product shrinkageincrease. The latter issue is particularly relevant for fresh perishable products. This pilot demonstrates thata retailer could reduce OOS, shrinkage and capital holding costs all together, by means of efficient RFIDdata management. Potential savings for fresh products account approx 1.7% of sale turnover.This study is the first pilot project which assesses the impact of RFID technology on the supply chainof fresh perishable products; a full roll-out of the project is being planned for the next future.Keywords: RFID, out of stock, fresh perishable fast moving consumer goods, pilot study

A quantitative evaluation of the impact of the RFID technology on shelf availability

In this paper, we aim at analyzing and punctually quantifying the benefits of the adoption of Radio Frequency Identification (RFID) technology for a better management of shop floor operations and reduction of out of stocks (OOS). To this extent, we first selected a panel of about 100 products belonging to different consumer packaged goods categories (i.e. dry foods, fresh foods, frozen products, health and beauty care) and then we identified 30 retail stores to be monitored, including both hypermarkets and supermarkets.We audited availabilities by daily mapping the number of items on the shelves at store level. In the case an OOS occurred, a store associate promptly provided the OOS root causes, chosing among 8 possible options. By combining pieces of information related to OOS magnitude, RFID impact on each root cause and customer behaviour in response to OOS, we quantified the potential benefits which could be generated by RFID adoptions, in terms of turnover increase for the retailer as well as for the manufacturer. Results obtained indicate that RFID technologies could be sustainable from an economical point of view for both the retailer and the manufacturer, when they are exploited not only for improving accuracy or efficiency of logistics processes but also for increasing sales through OOS reduction.

Performances of RFID, acousto-magnetic and radio frequency technologies for electronic article surveillance in the apparel industry in Europe: A quantitative study

The purpose of this paper is to explore the potentials of implementing UHF Class 1 Gen 2 RFID technology to support Electronic Article Surveillance (EAS) applications in the apparel supply chain. The study consists of two parts. The first one aims at quantitatively assessing the technical performance achievable by means of RFID technology, and is carried out through an extensive experimental campaign, considering 14 different common stealing patterns, derived both from the literature and from the suggestions received from a panel of experts belonging to 6 major Italian fashion companies. The same tests were performed exploiting two common EAS technologies, such as acousto-magnetic (AM) and radio frequency (RF), so as to provide a quantitative comparison of outcomes for each theft scenario. The second part of the study examines the economic feasibility of replacing traditional AM or RF technologies by RFID technology for antitheft purpose. The assessment is grounded on a real case example, derived from the analysis of three fashion retail stores. Results of the tests show that RFID and AM perform better than RF in most of the scenarios examined, and that both RFID and AM technologies have some strengths and weaknesses. As regards the economic analysis, the business case shows that the investment required for implementing RFID technology for antitheft purpose in a typical fashion retail store is limited, and can be quickly paid back, thus providing an economic justification to this technology. This study represents a good starting point for the apparel industry to look at RFID as a promising technology for EAS applications.

Analysis and optimisation of inventory management policies for perishable food products: a simulation study

In this paper, we analyse three traditional reorder policies, namely economic order interval (EOI), economic order quantity (EOQ) and (S, s), applied to five food products with different shelf-life characteristics; three fresh products with limited shelf-life are considered. An ad hoc simulation model, reproducing a real two-echelon supply chain, was developed under Microsoft ExcelTM to simulate the product flow along the supply chain, according to the three policies. From the simulation, the minimum cost setting is first derived for all policies. Then, additional performance parameters (e.g., the throughput time of items) are computed and compared with the products constraints (e.g., the shelf-life), to assess the real suitability of implementing each policy to the products considered. Because both the supply chain modelled and the products data are derived from a real scenario, our outcomes should be of practical usefulness to inventory managers, to optimise inventory management of perishable products.

The impact of (S,s) policy on supply network performance: a simulation study

This paper builds upon the study by Bottani and Montanari (2011, pp.226-269). Here, the authors presented a simulation model to assess the performance of supply networks, and investigated economic order interval (EOI) and economic order quantity (EOQ) policies under several different operating conditions of the networks, including: the network configuration; the demand behaviour and stochasticity; the lead time stochasticity; the safety stocks coefficient. In this paper, we extend and complete the previous study by investigating the (S,s) policy, i.e., a periodic review policy with re-order points and order-up-to level. To this extent, we start by presenting a model to simulate the (S,s) policy; then, by maintaining the same simulation settings used by the authors and adding the new policy, we investigate 192 scenarios in a 3 × 26 factorial design. We present some selected outcomes from the simulation runs, primarily focused on the comparison of the three reorder policies in terms of their impact on the supply network performance. From those outcomes, we derive interesting guidelines, which allow identifying the most appropriate reorder policy to be adopted in the network as a function of its operating conditions. Findings of this study also provide supply chain managers with an overview of the performance that can be expected when the (S,s) policy is adopted in a supply network.

Investigating the demand propagation in EOQ supply networks using a probabilistic model

In this paper, we introduce a new demand probabilistic approach, named M.DPA.eoq (Montanari Demand Probabilistic Approach in economic order quantity [EOQ] scenario), for predicting the demand seen by an upper tier echelon (e.g. a distribution centre) of a supply network, serving several lower tier echelons operating according to an EOQ reorder policy. The M.DPA.eoq is based on an analytic approach, by which we derive the distribution of the demand seen by the upper tier echelon of the supply network. The approach has been designed to be very simple, so as to gain in pedagogical value. The simplicity and ease of application of this approach are confirmed by the possibility of exploiting general purpose software, such as Microsoft ExcelTM, to implement and validate it. Moreover, the M.DPA.eoq has potential to be directly exploited by practitioners, such as supply network managers, to estimate the distribution of the demand the upper tier echelon will face under a defined network structure. Students and researchers could also benefit from such a model, given its ease of understanding and usage. With the purpose of showing its potential usefulness in real cases, we discuss two practical implications of the M.DPA.eoq, referring to the use of its results for: (1) computing the bullwhip effect of the network; and (2) analysing the impact of each retail store on the variance of the demand seen by the upper tier echelon.

An empirical study on the relationships between maintenance policies and approaches among Italian companies

Purpose – The purpose of this paper is to propose an empirical investigation targeting companies operating in Northern Italy and focusing on some main topics of maintenance. Design/methodology/approach – Through a combined application of factor analysis and cluster analysis, the paper first identified the main approaches implemented by Italian companies with the purpose of preventing failures and reducing their consequences. Then, the paper grouped companies on the basis of such approaches, and derived the profile of each cluster, in terms of both the companys characteristics and some key maintenance elements, including the maintenance policy or the use of advanced techniques to make maintenance interventions more effective. Findings – Results of this study suggest that the approach to maintenance management could be related to the implementation of specific maintenance policies, as well as to other topics, such as the company characteristics, the use of advanced techniques for enhancing maintenance effe...

Modeling and Thermo-Fluid Dynamic Simulation of a Fresh Pasta Pasteurization Process

Abstract This work aims to analyze and predict the thermal pasteurization process for two types of fresh pasta, by means of computational fluid dynamic (CFD) simulation. The types of pasta considered are “ravioli” filled of meat and “orecchiette”, without filling. Thanks to many studies on pasta properties, some parameters, such as thermal conductivity and heat capacity, are previously determined for both products. CFD simulations are, thus, performed using ANSYS CFX code version 14.5 in a transient state (after 150 s for ravioli and after 45 s for orecchiette), to evaluate the pasteurization temperature and the P-value reached on the surface of the orecchiette and at the core of the ravioli, as a function of the process time. The heat exchange takes place in a pasteurization tunnel by means of water vapor at ~371 K. Experimental tests are finally performed to validate the simulation model of heat exchange. Results show a good agreement between the simulated results and the real pasteurization process and confirm the potential usefulness of the simulation model to evaluate the process performance.