Enhancing the Use of Radio-Frequency Identification Technology (RFID) to Optimise Operational Costs and System Efficiency in Outbound Logistics

In the literature, there are two groups of research contributing to the adoption of RFID. One is related to the technical aspects, such as enhanced security tags, increased tracking range, and authentication protocols. The other is associated with the applications, which provide greater contribution to potential adoption. This area of research explores RFID applications in manufacturing, inbound/outbound logistics, warehousing, and many more. However, a crucial aspect of research which is not currently being investigated is the exploration of extensive use of real-time RFID data to improve and add substantial values to the business operations, e.g. optimising distribution routes/network responding to dynamic changing environment. This area of research is vital as it will result in greater operational costs to be reduced and system efficiency to be enhanced, and leads to a more promising investment to achieving higher returns. This area of investigation forms the key aim of this proposal and contributes to the justification required for decisions for RFID adoption. The findings of the proposed research will also highlight to the RFID implementers that the technology is not merely for track and trace purposes, but is used as a way to achieve improved economic competitiveness. This research proposal is to investigate how distribution network in outbound logistics can be efficiently modelled, reconfigured, integrated, and optimised dynamically in response to changes in the market, the production and at any stage in the supply chain. To facilitate this research work, it is proposed to adopt the concept of multi-agent systems and intelligently integrate with RFID technology. The central part of this research is to develop a dynamic integrated agent-based control system to enable distribution routes to be dynamically modelled. In response to changes, alternative route configurations can be generated and evaluated by the optimisation strategy/methodology developed (i.e. operational level optimisation). In addition, a global level optimisation across the supply chain sectors will also take place simultaneously to ensure a smooth, efficient flow of operations in the supply chain. This will enhance the responsiveness of the supply chain operations coping with dynamic changes efficiently and cost-effectively. With the optimised distribution network it will help to reduce CO2 emissions and as a result, promoting greener supply chain to support the UK government's Carbon Reduction Strategy for Transport (introduced in July 2009). Two industrial partners (Carton Edge and ATMS), the Centre of RF Applications and Testing at University of Hong Kong Science and Technology, and the RFID vendor IdentifyRFID, each with its expertise and interests in RFID, will support this research. These partners will play a significant role in this project, contributing to the project trials and output dissemination. They are able to provide resources to support the development and validate the methodology proposed. The end product of this research will then be used to assess the company's operations and they will receive a thorough assessment of the operational performance, as well as an evaluation of ways to maximise flexibility, agility, and efficiency of the operations to achieve economic competitiveness. The research will also identify how RFID-enabled operations can help them to add value to their customer services. ATMS, which develops RFID-enabled logistics software, has shown interests in exploiting the potential take-up of the end product of this research to a commercial exposure. Last but not least, invitations for workshops and academic visits to other research centres/institutions will play an important role for raising research awareness and for research collaboration. It is envisaged that the strengthened connection through this research will serve as a strong ground for partnership in the future research grants.

The immediate beneficiaries will be the eight organisations that are part of the interest group of Aston RFID Advanced Research. Four partners are directly involved in this project; from the private sector are Carton Edge (food packaging), ATMS (logistics software vendor) and IdentifyRFID (RFID vendor), and from the academic institution is the Centre of RF Applications and Testing at Hong Kong Uni. of Science and Technology. Each partner with their expertise and resources will contribute to the project specifications, trials, and disseminating as well as marketing the project output. Their contribution will be made at different stages throughout the project lifecycle. Each partner will benefit from the research depending on their involvement. Carton Edge will be involved in the early stages of the project, whereby their key operations will be studied and modelled and relevant information will be gathered and used throughout the research. In return, the research finding will enable them to understand how RFID data can help them to reduce their operating costs by identifying ways to enhance their operational performance. Simulating the developed model with their operational data, they are able to assess their operations and evaluate ways to maximise agility and efficiency of greener operations to achieve economic competitiveness. This research finding will also be extended to other industrial partners within our interest group. ATMS is a logistics software vendor that will provide technical support/expertise to this research in software simulation. ATMS will benefit from the development of RFID-enabled simulation modules in the proposed research, which may lead to creating a new feature/package in their product capable of optimising logistics operations. The research finding will also be of interest to RFID vendors once the industrial applicability is demonstrated. As a PhD project sponsor, the NHS Purchasing and Supply Agency (and other agencies within the NHS network) will also benefit from our research findings, contributing to their ongoing e-Enablement Programme. The research findings may generate new insight how other health agencies may also adopt RFID to achieve greater benefits, not only to ensure patient safety, but to improve the efficiency of pharmaceutical/hospital equipment supply chain. UK/EU governing bodies would also benefit from this research especially in standard development for commercial RFID applications. Last but not least, this research output will bring benefits to the environment and society. By achieving optimised distribution network, CO2 emissions can be reduced and as a result, it will bring less damage to the environment. There are currently ongoing engagements with the partners through PhD and KTP projects, regional university-company collaborative funding (e.g. INDEX), consultancy, student projects, and seminars, which will enhance their involvement. It is envisaged that, with this partnership, there will be a greater opportunity of this research making impact to a wider audience/intermediary organisations, i.e. from the partners' business network. A report for each project milestone, regular emails interaction and meetings, as well as workshops will take place at different project stages for progress discussion, problem identification and valuable inputs. To extent the impact globally, it is planned for dissemination through journal publications, conferences, and involvement in world-wide RFID events (e.g. RFID World), as well as publications in popular RFID media websites. Plans have been proposed for continuous collaborations after the end of the project. There are anticipated issues to be explored, such as risk analysis (e.g., disruption to their operations, potential technical barriers for implementation) and cost implication. This area of research can be performed through a few potential channels, such as TSB funding, student projects, consultancy, or INDEX.