RFID and Labor Management Systems Selection in the Logistics Industry

Cheryl A. Tibus (Mercer University, USA) and Linda L. Brennan (Mercer University, USA)
Copyright: © 2010 |Pages: 49
EISBN13: 9781609607050|DOI: 10.4018/jcit.2010010103
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Abstract

Faced with increasing competitive pressures, a logistics company in the United States sought to reduce its cost structure by implementing two information systems. The Labor Management System (LMS) was specifically designed to improve warehouse worker efficiency and the Radio Frequency Identification (RFID) system tracked the movement of products, pallets, and shipment. This case presents an overview of the logistics industry, background on the business need to consider new systems, and the requirements of the company in its system selection. Details of the technologies considered are included. The reader is then faced with the challenge of analyzing the options, and making a recommendation for systems selection. After analyzing this case study, the reader should be able to: • Define logistics functions, supply chain management, and third party logistics (3PL) services • Describe LMS and RFID systems • Identify the expected costs and benefits of the proposed technologies • Develop a multi-factor evaluation for vendor selection • Make a recommendation based on the evaluation, financial data, and other considerations.
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