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KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY
COLLEGE OF ARTS AND SOCIAL SCIENCES
KNUST SCHOOL OF BUSINESS
DEPARTMENT OF INFORMATION SYSTEMS AND DECISION SCIENCES
AN RFID APPROACH TO ESTABLISING SUPPLY CHAIN VISBILITY AMONG
RETAIL FIRMS (A CASE STUDY OF MELCOM AND OPOKU TRADING)
2014
ii
AN RFID APPROACH TO ESTABLISING SUPPLY CHAIN VISBILITY AMONG
RETAIL FIRMS (A CASE STUDY OF MELCOM AND OPOKU TRADING)
BY
AMANFU TIMOTHY
BONSU OSEI ABEYIE JUNIOR
OWUSU MICH-SETH
Thesis submitted to the Department of Information Systems and Decision Sciences,
Kwame Nkrumah University of Science and Technology.
In partial fulfillment of the requirements for the award of a Bachelor of Science
Degree in Business Administration
May 2014
iii
DECLARATION
We hereby declare that this dissertation is the result of our own original work and
that no part of it has been presented for another degree in this university or elsewhere.
Candidates’ Names and Signatures
Name Signature
…………………………………………………….. ..…………………
…………………………………………………….. ..…………………
…………………………………………………….. ..…………………
Date: .........................................................................................................
We hereby declare that the preparation and presentation of the thesis were supervised in
accordance with the guidelines on supervision of thesis laid down by Kwame Nkrumah
University of Science and Technology.
Supervisor’s Name:.............................................................................
Supervisor’s Signature: ..................................................................................
Date: ..........................................................................................................
iv
AKNOWLEDGEMENT
We would first like to thank God for strength and wisdom given us to carry out this research.
We would also like to thank our families and friends for their relentless support. Our sincere
appreciation goes to our Supervisor, Mr. E.K. Quansah for his steady assistance throughout
the project and finally to the Management of Melcom, Adum Branch and Opoku Trading for
their cooperation in this research.
v
ABSTRACT
Radio Frequency Identification (RFID), though still an emerging technology has become one
of the major winners of increased operational efficiency and supply chain visibility for top
retail firms around the world. The promises of the RFID technology are boundless in terms of
what it could be used for across all industries.
One of the major problems of supply chain management has been the establishment of
visibility for managers that enables them to have real time information about what is
happening at all levels in the supply chain.
In carrying out this research a qualitative research approach was used. The major source of
secondary data was literature review. Primary data was also collected using research
instruments such as interviews and observation.
The research findings revealed loopholes in supply chain visibility in Ghana’s retail sector. It
was identified through the findings that, companies thought of supply chain technologies as
very expensive and complex to implement. Visibility loopholes led to various opportunities
for the implementation of RFID in the retail sector and supply chains in Ghana generally.
The use of less expensive supply chain technology was recommended for companies that had
a low budget scope. Additionally, an RFID implementation framework was proposed to aid
in the implementation of RFID.
The RFID approach to establishing supply chain visibility is a crucial approach that provides
the supply chain with varying dimensions of value.
Keywords: Supply Chain, Supply Chain Visibility, Radio Frequency Identification (RFID),
Retail industry.
vi
TABLE OF CONTENTS
Abstract…………………………………………………………………………………….... v
CHAPTER ONE – INTRODUCTION...................................................................................1
1.1 Introduction…………………………………………………………………………....1
1.2 Statement of Problem………………………………………………………………….3
1.3 Objectives of the Study……………………………………………………………......3
1.4 Research questions…………………………………………………………………….3
1.5 Scope of Study…………………………………………………………………………4
1.6 Justification……………………………………………………………………………4
1.7 Methodology…………………………………………………………………………..5
1.8 Limitations of the study………………………………………………………………..5
1.9 Organisation of the Study……………………………………………………………...6
CHAPTER TWO – LITERATURE REVIEW.....................................................................7
2.1 Overview of Supply Chains…………………………………………………………….7
2.1.1 Definition of Supply Chain…………………………………………………………8
2.1.2 Supply Chain Network……………………………………………………………...8
2.1.3 Supply Chain Processes…………………………………………………………...10
2.3 Supply Chain Visibility……………………………………………………………….11
2.3.1 Ways of Achieving Supply Chain Visibility……………………………………...12
2.4 Supply Chain Technologies…………………………………………………………...13
2.4.1 Bar Codes……………………………………………………………………….....13
vii
2.5 Radio Frequency Identification Device (RFID)…………………………………........14
2.5.1 Operational Procedure of RFID Technology……………………………………...15
2.5.2 Application of RFID in Supply Chains…………………………………………....17
2.5.3 Application of RFID in Retail…………………………………………………….19
2.6 Benefits of RFID…………………………………………………………………........21
2.6.1 Benefits of RFID in Retail………………………………………………………...23
2.7 Challenges of RFID Adoption………………………………………………………...24
2.8 Implementing RFID in Supply Chain………………………………………………....25
2.8.1 RFID Implementation Framework………………………………………………...25
2.8.2 Key Success Factors of RFID Implementation…………………………………....27
CHAPTER THREE – METHODOLOGY………………………………………………..30
3.1 Introduction…………………………………………………………………………....30
3.2 Research Design………………………………………………………………………30
3.2.1 Qualitative Research……………………………………………………………....30
3.2.2 Quantitative Research……………………………………………………………..31
3.3 Research Strategy……………………………………………………………………..31
3.3.1 Case Study Approach……………………………………………………………...31
3.4 Population and Sampling Technique………………………………………………….32
3.4.1 Population Description……………………………………………………………32
viii
3.4.2 Sampling Description…………………………………………………………......33
3.5 Data Collection Methods……………………………………………………………...33
3.5.1 Primary Data……………………………………………………………………....33
3.5.2 Secondary Data…………………...…………………………………………….....34
3.6 Data Analysis………………………………………………………………………….35
3.7 Organisational Profiles………………………………………………………………..36
3.7.1 Melcom Limited –Adum………………………………………………………….36
3.7.2 Opoku Trading Limited…………………………………………………………...36
CHAPTER FOUR – PRESENTATION OF RESEARCH FINDINGS AND DATA
ANALYSIS..............................................................................................................................38
4.1 Introduction....................................................................................................................38
4.1.1 Interview Participants..............................................................................................38
4.2 Findings.........................................................................................................................39
4.2.1 Establishing Supply Chain Visibility in retail firms using RFID............................39
4.2.1.1Possibilities for Establishment of Visibility with RFID in retail firms.................40
4.2.2 Opportunities for RFID implementation in Ghana’s retail sector...........................41
4.2.3 Barriers to RFID implementation by retail firms.....................................................44
4.2.4 Discussion and Analysis…………………..............................................................46
4.3Proposed RFID implementation Framework.................................................................48
ix
CHAPTER FIVE – SUMMARY, RECOMMENDATIONS AND CONCLUSION........53
5.1 Summary of findings.....................................................................................................53
5.1.1 Establishing Supply Chain Visibility in retail firms using RFID............................53
5.1.2 Opportunities for RFID implementation in Ghana’s retail sector...........................53
5.1.3 Barriers to RFID implementation by retail firms.....................................................54
5.1.4 Proposed RFID implementation Framework...........................................................54
5.2 Recommendations..........................................................................................................54
5.2.1 Recommendations for further research....................................................................56
5.3 Conclusion.....................................................................................................................56
REFERENCES.......................................................................................................................57
APPENDIX A ........................................................................................................................61
x
List of Figures
Figure 1: Supply chain network structure..................................................................................8
Figure 2: Supply ChainProcesses...........................................................................................11
Figure 3: RFID Infrastructure.................................................................................................14
Figure 4: Framework for RFID implementation.....................................................................52
xi
List of Tables
Table 1: Benefits of RFID in Retail Industry...........................................................................23
Table 2: Challenges to RFID Adoption....................................................................................24
Table 3: Interview Participants Data.......................................................................................38
Table 4: Visibility loopholes data for Opoku Trading and Melcom-Adum.............................43
Table 5: RFID implementation Barriers data for Opoku Trading and Melcom-Adum...........45
Table 6: Measuring the Impact of RFID in Visibility in Opoku Trading and Melcom............46
xii
List of Acronyms
RFID-Radio Frequency Identification
SCV-Supply Chain Visibility
TID-Tag Identification
EPC-Electronic Product Code
ROI-Return on Investment
ERP-Enterprise Resource Planning
POS- Point of Sale
FMCG-Fast Moving Consumer Goods
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CHAPTER 1
1.1 Introduction
As it has in all areas of today’s business environment, the application of integrative
information technology has caused a revolution in the concept and practice of supply chain
management. The implementation of information technology has become an absolute
requirement for success in today’s business environment. Several factors are driving this
movement. To begin with, companies have had to turn to computerized applications in order
to deal with the increasingly complex requirements of doing business in a fast-paced global
environment. Customers and suppliers have continued to demand instantaneous response and
full information visibility, in real-time. Third, the rapidly changing contours of dealing with
shrinking life cycles for everything have made the ability to closely link customers,
producers, and suppliers a requirement for competitive survival. Fourth, the integrative power
of the Internet is requiring supply chains to have the ability to rapidly transfer transaction
information and marketplace intelligence from buyer to supplier. And finally, information
technology has become a competitive advantage (David F. Ross, 2011). WalMart’s satellite-
connected systems, American Airline’s Sabre System, Federal Express’s package tracking
systems, and Cisco’s “virtual manufacturing environment” are examples of how technology
automates complex tasks, generates useable information, and networks supply chain elements
tightly together to manage complexity and expand competitive advantage (David F. Ross,
2011).Modern retail industry faces a number of challenges. The introduction of technologies
like barcodes has not eliminated many issues such as out of stock and inventory inaccuracy
issues.
Radio Frequency Identification (RFID) is an example of automatic identification technology
which is much more advanced than the barcode technology and can address these issues
2
effectively through reduced manual intervention and thus errors. In this regard, (Bagchi et al.,
2007) have shown that RFID specifically dominates barcodes.
Research has shown that Sales at stores with the RFID systems are 14% higher on average
than the non-RFID stores. In addition, staffing levels are 20% to 30% lower because
employees don’t have to spend time performing manual inventory checks. Finally, stockroom
inventory in RFID enabled stores is down 15% as compared to non-RFID stores (Weier et al,
2009).
Ghana seems to be on track to becoming Africa’s next hotspot for retailers, according to new
research by Euromonitor International. Ghana has been identified as a country with a positive
business environment in which foreign retailers can invest. The Euromonitor research notes
that Ghana’s retail industry achieved 14% growth between 2006 and 2011, which reflects the
strength of fast-moving consumer goods (FMCG) companies in the country.
The retail sector in Ghana is however coupled with several challenges among which are the
challenge of practicing information based supply chains that are built on realtime information
systems.
In Ghana’s retail sector, RFID technology is yet to shoot up. The technology has scarcely
being used and its benefits not yet realised. This could be attributed to lack of information
about the benefits that this technology has to offer in terms of Supply Chain visibility and
also the non existence of a framework for implementing it adapted to the Ghanaian
environment.
This research seeks to tackle this problem by taking a critical look at the opportunities for
RFID implementation in the dominant retail sector of the Ghanaian Supply chain and how it
can be used to achieve increased visibility and increased supply chain performance.
3
1.2 Statement of the problem
Supply chains in Ghana face many problems, from food supply chains to pharmaceutical
supply chain and the retail supply chains as a whole. Food spoilage due to inaccurate Real-
time visibility into product condition during transportation accounts for a high percentage of
Ghana’s post harvest losses. In the Pharmaceutical supple chain there is the need for RFID to
combat counterfeit drugs circulation which has plagued Ghana’s Pharmaceutical supply
chains for a steady while. There is also a very limited amount of Research into the benefits
RFID implementation could offer to supply chains in Ghana in terms of increased visibility
which is a major performance indicator. The absence of useful information to support
decisions in supply chains also contributes to a visual cycle of continuous losses that accrue
to the players in these supply chains and the nation as a whole. This research seeks to
investigate the potential for implementation of RFID technology in Ghana’s retail sector. The
research uses two companies (Melcom Ltd and Opoku Trading Ltd) to investigate this.
1.3 Objectives of the Study
1. To examine how RFID technology can be used to establish supply chain visibility.
2. To identify opportunities for RFID implementation in Ghana’s retail sector.
3. To evaluate the Barriers to RFID implementation in Ghana’s retail sector.
4. To propose a framework for RFID implementation by firms in Ghana’s retail sector.
1.4 Research questions
1. How can RFID be used to establish supply chain visibility?
2. What are the opportunities for RFID implementation in Ghana’s retail sector?
3. What are the Barriers to RFID implementation in Ghana’s retail sector?
4. How can RFID be implemented by retail firms in Ghana?
4
1.5 Scope of Study
In a broader context this research will look at supply chains in Ghana and how RFID can
improve visibility in these supply chains within the Ghanaian context. On a more focused
perspective, the research will limit itself to the retail sector in the Ghanaian supply chain
which happens to be a major stakeholder in the Supply chains that exist in Ghana.
1.6 Justification
This research will provide information about the visibility loopholes and challenges that
currently exist in our case companies. This research will subsequently analyse this data to
determine how these visibility loopholes can be closed using RFID. In the entire retail
industry, this information will be useful to managers and parties in making strategic
decisions.
Secondly, Ghana’s economy stands to benefit from this research. The use of RFID will lead
to increased productivity and massive cost cuts. This is true because retail is a major
contributor to the country’s economy.
Thirdly, this research will provide currently hard-to-come-by information about how the
implementation of RFID can be applied feasibly in Ghanaian retail chains. This research also
contributes to the currently limited scope of knowledge available to Ghanaians on the
benefits RFID has to offer and how its benefits can also be reaped by Ghanaian firms.
5
1.7 Methodology
The research will adopt a qualitative design to answering the research questions that have
been posed. By using a multiple case study approach of two firms we hope to obtain
information that will be applicable to the general retail scene in the Ghanaian supply chain.
The companies that have been picked for the study include Melcom Ghana Ltd, Adum branch
and Poku Trading Ltd, Adum branch. Information will be collected from the case firms using
interviews and an observational approach as well.
1.8 Limitations of the study
The major limitations of this research are time and budget constraints. Due to the time
available for the research to be carried out there are constraints on the amount of information
that can be gathered from primary and secondary sources as well. Financial resources also
serve as a major constraint to this research in that we are unable to access all the funds that
would have been necessary for making all the needed contacts to organisations in the retail
sector of Ghana’s supply chain. This means that the research will have to be capped to fit he
financial resources currently available to us.
Another limitation to the research is access to relevant secondary data that fits the scope of
the research. There is hardly enough information that ports the general findings of RFID to
the Ghanaian context. This means the research will have to rely more on RFID applications in
other countries.
6
1.9 Organisation of the Study
Chapter 1 of this study introduces the problem statement and lists the objectives for research
as well as the questions that this research seeks to answer.
Chapter 2 presents a review of existing literature and relevant research associated with the
problem introduced in Chapter 1.
Chapter 3 presents the methodology and procedures used for data collection an analysis.
Chapter 4 contains an analysis of data and presentation of the results.
Chapter 5 offers a summary and discussion of the research’s findings, framework for
application and recommendations for future research.
7
CHAPTER 2
LITERATURE REVIEW
Introduction
The objective of our literature review is to help us understand how supply chains work, how
information is shared, challenges to information sharing and how RFID has been used to
establish supply chain visibility.
2.1 Overview of Supply Chains
Supply chains play a very important role in modern society; in developed countries and
developing countries alike. Businesses rely on an effective and efficient supply chain network
to deliver products and service value to their customers. A supply chain in simple terms refers
to links among suppliers, producers, distributors and customers. In developing countries like
Ghana supply chains are saddled with several impediments that make it difficult for its
returns to be reaped. Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the ultimate provision of product and service packages
required by end customers. Spans all movement and storage of raw materials, work-in-
process inventory, and finished goods from point of origin to point of consumption
Supply chain management is aimed to sustain long-term performance of individual
companies and the overall supply chain by maximizing customer satisfaction with minimum
costs. Achieving effective and efficient supply chain is not easy. One of the major issues in
the supply chain management is product loss or shrinkage. In order to overcome this problem,
a recent innovation that is seen as a likely alternative to barcodes is Radio Frequency
Identification (Taylor and Russell, 2009). RFID with its superior tracking and identification
capability will be able to identify where losses are occurring and enable effective traceability.
8
2.1.1 Definition of Supply Chain
Sunil Chupra and Peter Meindl (2003) define a supply chain to consist of all parties involved,
directly or indirectly, in fulfilling a customer request.
According to the Council of Supply Chain Management Professionals (CSCMP), a Supply
Chain (SC) is a global network of organizations that cooperate to improve the flows of
material and information between suppliers and customers at the lowest cost and the highest
speed.
From these two definitions the words that could be identified are Parties, Network and Flow.
Parties here refer to individuals and organisations that are involved in the supply chain.
Network also refers the linkages among the parties involved in the supply chain. Flow refers
to the smooth movement of products, services and information among these partners.
2.1.2 Supply Chain Network
One key element of managing the supply chain is to have an explicit knowledge and
understanding of how the supply chain network structure is configured.
Figure 1: Supply chain network structure (Source: Sunil Chopra, Peter Meindl 2003)
9
Members of a Supply Chain Network
The members of a supply chain include all companies or organizations that interact directly
or indirectly with one another. However, to make a very complex network more manageable,
it seems appropriate to distinguish between primary and supporting members.
Primary members: Primary members of a supply chain are all those autonomous companies
or strategic business units who actually perform operational and/or managerial activities in
the business processes designed to produce a specific output for a particular customer or
market. (Sunil Chupra and Peter Meindl, 2003).
Supporting members: In contrast, the supporting members of a supply chain are companies
that simply provide resources, knowledge, utilities, or assets for the primary members of the
supply chain (Sunil Chupra and Peter Meindl, 2003).
Structural Dimensions of the Network
Three structural dimensions of the network are essential when describing, analyzing, and
managing the supply chain.
The Horizontal Structure: The term horizontal structure refers to the number of tiers across
the supply chain. The supply chain may be long, with numerous tiers, or short, with few tiers
(Sunil Chupra and Peter Meindl, 2003).
The Vertical Structure: The vertical structure refers to the number of suppliers/customers
represented within each tier. A company can have a narrow vertical structure, with few
companies at each tier level, or a wide vertical structure, with many suppliers or customers at
each tier level (Sunil Chupra and Peter Meindl, 2003).
10
The Horizontal Position: The third structural dimension is the company's horizontal position
within the supply chain. A company can be positioned at or near the initial source of supply,
at or near to the ultimate customer, or somewhere between these end points of the supply
chain(Sunil Chupra and Peter Meindl, 2003).
2.1.3 Supply Chain Processes
SCM can be divided into three main activities – purchase, manufacture and transport
(Thomas et al., 1996). Cooper et al. (1997) analyzed the three elements of SCM – supply
chain business processes, supply chain management components, and supply chain network
structure. The Global Supply Chain Forum identified eight key processes that make up core
of supply chain management:
• Customer Relationship Management
• Customer Service Management
• Demand Management
• Order Fulfillment
• Manufacturing Flow Management
• Procurement
• Product Development and Commercialization
• Return Management
The eight key business processes run the length of the supply chain and cut across firms and
functional silos within each firm.
11
Figure 2: Supply Chain Processes (Source: Cooper et al 1997)
Figure 2 shows the entire elements in SCM frame. It displays the details of the whole
processes from purchasing, management, production, and distribution to customers.
The information flow is like an individual system to link the whole supply chain from
supplier and manufacturer to consumer.
2.3 Supply Chain Visibility
A major challenge to supply chains has being the achievement of a direct line of sight. Often
supply chain members can only have access to limited amount of information mostly
restricted to their organizations. This has a negative impact on decision making across the
supply chain ad is a major cause of the distortion of information across the supply chain.
Schoenthaler (2003) defined SCV as: Visibility means that important information is readily
available to those who need it, inside and outside the organization, for monitoring, controlling
and changing supply chain strategy and operations, from service acquisition to delivery.
Bradley (2002) mentioned “. . . visibility as a direct insight into the status of orders, inventory
and shipments across the supply chain.”
12
Another interesting contribution made by Cecere (2005) says that Supply Chain Visibility is
more than simply data, and is focused on process.
The success of a supply chain system depends on the level (and the timeliness) of visibility it
has on the materials from the suppliers to the customers (Joshi 2000). The most important
benefits of such improved information visibility are realized in inventory management and in
asset utilization.
2.3.1 Ways of Achieving Supply Chain Visibility
Supply chain Visibility can be achieved in several ways; these include Supply chain
Technologies and collaboration and building longterm relationships.
Building Long Term Relationships
Supply Chain Visibility can only be established across supply chains when there is the
existence of Trust among its partners. Due to this well established fact a major strategy to
achieving visibility in supply chains is to build long term relationships so that there is room
for trust which serves as the foundation for supply chain visibility systems deployment. (E
Quansah, 2013)
Supply Chain Technologies
Supply chain technologies have become very relevant in achieving supply chain visibility.
The use of Technology such as Radio Frequency Identification Device has been implemented
by some companies who have experienced enhancements in their level of visibility across the
supply chain. (D. Nuertey, 2013)
13
Collaboration
Supply Chain collaboration is the integration of processes within an organization and across
the supply chain. Collaboration has proven to provide members of the supply chain with
enhanced visibility due to the integration of the various processes of the various supply chain
members so that there is a level of standardization in business processes. (D. Nuertey, 2013)
2.4 Supply Chain Technologies
Supply chain technologies play a very important role in information sharing and collaboration
among parties in the supply chain. They involve hardware and software computer systems
that are implemented to aid supply chain visibility and flow.
2.4.1 Bar Codes
A barcode is an optical machine-readable representation of data, which manifests data of the
object property to which it attaches. Bar codes provide a rapid, accurate, and low cost
approach to encode information which can be easily read by inexpensive electronic readers.
The emergence of bar code has improved the efficiency of handling process along the supply
chain and made great contribution to traceability. This automatic, high reading speed, precise
technology provides simpler, more economical and accurate traceability systems (Connolly,
2005; Zhao et al., 2009; Mehrjerdi, 2010).
By implementing bar codes, data can be read automatically thus eliminate the potential errors
from manual data input. Bar codes act as a useful tool for business data collecting,
processing, transmitting, recording, and managing, which can apply and bring benefits in
various fields and industries such as manufacturing, distribution, warehousing, and retail
(Flott, 2002; Connolly, 2005; White et al., 2007).
14
2.5 Radio Frequency Identification Device (RFID)
Radio frequency identification (RFID) is a technology that uses radio waves to automatically
identify objects, often considered the next stage in the barcode evolution (Srivastava, 2004;
Kelepouris et al., 2007). It contains a wireless microchip attached to an in antenna the tag,
and the antenna enables the microchip to transmit the identification information to a reader
then the reader converts the radio waves reflected back from the RFID tag into digital
information. This makes the reading phase swift and fully automated without physical
contacting or sight positioning with the reader (Kelepouris et al., 2007; Abad et al., 2009).
The development of Radio Frequency Identification (RFID) dates back to the early 1920s
with the birth of radar systems. It was further developed for detection of enemy aircraft
during World War II (AIM2001). Starting from the 1980s through the early 2000s, the
technology was deployed in a wide range of applications where wireless non-line-of-sight
data could be used to advantage, such as highway and bridge tolls, livestock identification,
tracking nuclear inventories, and automated vehicle identification systems (Jacob et al.2004).
Figure 3: RFID Infrastructure (Source: Bill Glover et al 2006)
15
2.5.1 Operational Procedure of RFID Technology
Albert Lozano, 2010 presents the operational procedure of RFID as follows.
A Radio Frequency Identification system has three parts:
a. A scanning antenna
b. A transceiver with a decoder to interpret the data
c. A transponder - the RFID tag - that has been programmed with information.
The scanning antenna puts out radio-frequency signals in a relatively short range. The Radio
Frequency radiation does two things:
a. It provides a means of communicating with the transponder (the RFID tag)
b. It provides the RFID tag with the energy to communicate (in the case of passive RFID
tags).
This is an absolutely key part of the technology; RFID tags do not need to contain batteries,
and can therefore remain usable for very long periods of time (maybe decades).
The scanning antennas can be permanently affixed to a surface; handheld antennas are also
available. They can take whatever shape you need; for example, you could build them into a
door frame to accept data from persons or objects passing through.
When an RFID tag passes through the field of the scanning antenna, it detects the activation
signal from the antenna. That "wakes up" the RFID chip, and it transmits the information on
its microchip to be picked up by the scanning antenna.
16
In addition, the RFID tag may be of one of two types. Active RFID tags have their own
power source; the advantage of these tags is that the reader can be much farther away and still
get the signal. Even though some of these devices are built to have up to a 10 year life span,
they have limited life spans. Passive RFID tags, however, do not require batteries, and can be
much smaller and have a virtually unlimited life span.
RFID tags can be read in a wide variety of circumstances, where barcodes or other optically
read technologies are useless. The tag need not be on the surface of the object (and is
therefore not subject to wear).The read time is typically less than 100 milliseconds. Large
numbers of tags can be read at once rather than item by item.
A reader can be either stationary in a fixed state (e.g., mounted above a conveyor belt) or
mobile as in a handheld device or attached to a forklift. The tag is a miniature chip with an
affixed radio antenna. The tag is attached to an item or its packaging. A radio wave signal is
transmitted between a reader and tag to communicate an Electronic Product Code (EPC). The
EPC is used to uniquely identify the pallet, case, or item.
17
2.5.2 Application of RFID in Supply Chains
The various applications of RFID within the supply chain have proven to be very useful and
effective in enhancing various aspects of the supply chain. Within these aspects of supply
chain such as retail, warehousing, inventory management and logistics management are
various processes which have been made efficient through the use of RFID. The applications
of RFID in these diverse areas of supply chain are discussed in this section.
Shipping and Distribution
In this industry, RFID technology enables suppliers to accurately determine the location of a
pallet, to track its journey through the supply chain, and to make instantaneous routing
decisions. At a major trucking and logistics provider company, RFID tags are embedded it
the fleet of 2600 trucks. At the service centre, the tag automatically determines what
loading/unloading activities are needed and assigns an appropriate crew to service the truck
(Intermec, 2004).
Tracking Baggage and Packages
In December 2008, Lisbon’s international airport installed an RFID system to monitor
baggage within the facility from the time the passenger gives a bag to the clerk to the moment
it is placed in the belly of a plane. All transfer bags received at Lisbon airport are tagged with
RFID tags on arrival and tracked only via RFID. Bar coded tagging, with only 80 to 90
percent accuracy rates, has been eliminated completely from the airport’s system for transfer
baggage. Milan’s Malpensa Airport, Italy’s busiest with 24 million passengers passing
through it each year, is the second airport in Europe, and the third worldwide, to implement
comprehensive RFID baggage tracking across the entire baggage handling system from
18
baggage check-in onwards. Air Transport Association (IATA) says that RFID baggage
handling systems are correct nearly 99 percent of the time (RFID News, 2009).
Pharmaceutical
The drug industry uses RFID technology to self-police in the fight against thieves and
counterfeiters. For example, Purdue Pharma, the manufacturer of the popular painkiller OXY
Contin, is using RFID tags to track shipment of its theft-prone drug. Pfizer was planning to
put the radio tags on bottles of its widely counterfeited Viagra drug by the end of 2005. With
RFID tags, pharmacists will be able to identify counterfeit drugs and law enforcement
officers also will be able to quickly check whether bottles they recover have been reported
stolen (Patton, 2005).
Government
This sector is another emerging application area for RFID. Government agencies are using
RFID technology for supply chain management, inventory, security, and military strategies.
The Army uses tags on supply containers for detecting shock and variances in temperature.
These tags have a range set of up to a mile to enhance supply management capabilities. The
Navy on the other hand uses RFID tags for weapon management with a range of less than 6
inches to protect sensitive data. Weaponry data collected by RFID tags reveal anything from
materials to capabilities and mission details (Aitoro, 2005). The Department of Defense is
requiring suppliers to deploy RFID tags on cases and pallets they deliver to the department by
January 2005. The department will use the technology to track packaged meals, chemical and
biological warfare suits, as well as on supplies moving from military distribution centres to
tactical forces (Bacheldor, 2003).
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2.5.3 Application of RFID in Retail
The retail industry offers several opportunities for the application of RFID technology. A
white paper released by Allien Technologies Inc, 2008 illustrates these applications to
include Promotional Tracking, In-Store Inventory Management – Items, In-Store Inventory
Management – Items, In-Store Inventory Management – Pallets, Brand Authentication,
Inventory Visibility in the Supply Chain and Asset Tracking.
Promotional Tracking
Track in-store deployment of displays to ensure timely deployment and removal of the
display per the marketing plan; Automatically record deployment of displays as they are
taken on to the store floor and later retired at the box crusher (Allien Technology
Corporation, 2008).
In-Store Inventory Management – Items
RFID-enabled physical inventory; using an RFID-equipped cart with a high-performance
RFID reader, count tagged product simply by moving the cart down each aisle (Allien
Technology Corporation, 2008).
In-Store Inventory Management – Pallets
Tag pallets and pallet-rack slots with Gen 2 tags; Automatically capture the location of
pallets when put away by associating pallet and pallet rack tag numbers in the database;
Provide forklift drivers with accurate locations of pallets of products for quick retrieval
(Allien Technology Corporation, 2008).
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Brand Authentication
The product tag contains both a customer-writable EPC number and a factory-set, unique tag
ID (TID) number; The TID cannot be changed by a would-be counterfeiter, so an item with
the correct pair of numbers is authentic. A quick check against a database using a handheld or
desktop reader can verify authenticity by confirming properly paired numbers; much more
effective than other authentication methods that can be copied – the TID number is factory
set by the tag manufacturer in the IC and is unique (Allien Technology Corporation, 2008).
Inventory Visibility in the Supply Chain
Track packaged goods from factory to retail floor, and produce from farm to grocery cooler;
Product is automatically registered as it passes through RFID-equipped dock doors and
thruways, providing location information; Empty case boxes and RPCs are captured as they
leave the store floor, indicating usage (Allien Technology Corporation, 2008).
Asset Tracking
Track reusable plastic containers (RPCs), pallets, roll cages and other assets as they move
through the supply chain or within a closed loop material handling process; Assets are
automatically registered as they pass through RFID-equipped dock doors and thruways,
providing location information (Allien Technology Corporation, 2008).
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2.6 Benefits of RFID
The use of RFID in supply chains has been very beneficial in achieving its overall aim of
creating value for customers. Keith A. et al, 2002) emphasize on labour reduction as a major
benefit of RFID whiles Albright B, 2010 scores on asset tracking and returnable items.
Albright also opines that product warranties and product recalls management is another key
benefit that RFID offers across board to industries across board.
Labour Reduction
RFID promises to help automate the supply chain to unprecedented levels, leading to labour
reduction throughout the process. The major cost component for typical distribution centres is
labour, accounting for around 50-80% of their total distribution costs. Keith et al, predict that
receiving check-in time could be reduced by 60-93% with RFID technology (Keith, A. et. al.,
2002) Focus on the Supply Chain: Applying Auto-ID within the Distribution Centre, IBM
Business Consulting Services, Auto-ID Centre, Massachusetts Institute of Technology,
2002.). It is also estimated that RFID could yield labour savings of up to 36% in order
picking and a 90% reduction in verification costs for shipping processes. These statistics
demonstrate the significance of labour in supply chains and that even small reductions can
deliver considerable financial savings. Retailers in particular, stand poised to benefit from
RFID, as they can remove the large labour component required to manage stock in their
stores.
Asset Tracking and Returnable Items
A recent Aberdeen Group survey of 200 companies found that more than half of the
companies with RFID systems were using the technology in asset tracking (Albright, B.,
2010). RFID is ideal for identifying items that require routine calibration, inspections, or that
22
need to be checked in or out. RFID can also track an asset’s movement, use, and placement,
helping to improve asset utilization. Shipping companies find it difficult to track containers as
they are continually transported around the world. RFID can help shipping and logistics
organizations accurately track such valuable assets. In addition, RFID systems can log a
container’s history; if a container has been used for the delivery of dangerous items such as
chemicals, RFID tracking can be used to ensure that government requirements and
regulations are adhered to. Many products require special reusable containers or packaging
for transportation purposes as they move along the supply chain. (Albright B., 2010).
Traceable Warranties and Product Recalls
Product recalls can be attributed as a costly source of loss in the supply chain. This is often
because it is extremely difficult for organizations to “pinpoint only the specific faulty
instances of a product which often leads to the destruction of perfectly good products”
(VeriSign, 2012). The level of information included on a units packaging can be the
difference between making a mass recall, requiring extensive advertising and large quantities
of possibly non-faulty product being recalled, or a highly specific and personalized tracking
of customers who have purchased the faulty products. RFID and the Electronic Product Code
(EPC) can uniquely identify every individual item in the supply chain, allowing
manufacturers to obtain instant access to information that allows them to issue targeted
recalls of only affected products. Subsequently, suppliers can maintain a strong and trusted
brand name. Tagged items that require repair and are covered by a warranty can be
authenticated, ensuring that the warranty period of the product has not expired. The item can
also be monitored as the product moves back up the supply chain to the manufacturer or
authorized repairer, allowing customers to receive detailed information on where their item is
in the process. (Albright B., 2010).
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2.6.1 Benefits of RFID in Retail
There are several benefits of RFID implementation to the retail industry. According to M.
Bhattacharya et al 2007, they include Increased Sales, Operational efficiency, Improved
Visibility, Reduced Cost, Improved security, improved customer service and improved
information accuracy.
Table 1: Benefits of RFID in Retail industry (Source: M. Bhattacharya et al 2007).
Better management of inventory Reduced out of stock ,Reduced inventory,
Reduced Shrinkage
Improved Security Security against theft/fraud, Improved supply
chain security
Operational efficiency/Improved
throughput
Accuracy, speed and efficiency of
process/improved supply chain velocity;
Improved efficiency of Store operations;
Improved labour productivity; Streamlined
process achievement
Improved Visibility Real-time visibility, Improved visibility of
orders and inventory.
Reduced Cost Reduced labour requirements/costs, Reduced
overall cost
Better information accuracy Improved packing and shipment accuracy,
Business intelligence.
Improved Customer service levels Increased customer loyalty.
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2.7 Challenges to RFID Adoption
Despite the promising applications of RFID in SCM, a number of challenges have hampered
the adoption of RFID. N.C. Wu et al, 2006 classified these challenges to be technology
challenges, standard challenges, patent challenges, cost challenges, infrastructure challenges,
return on investment (ROI) challenges, and barcode to RFID migration challenges.
Table 2: Challenges to RFID Adoption (Source: N. C. Wu et al. 2006).
Technology Challenges Material effects on antenna power Pattern: Radio waves
will be reflected and refracted differently by the different
materials to which a tag is attached.
RFID readability can be affected by the relative position
and orientation of the tag antenna and the reader antenna,
because antenna orientation affects its power pattern
(Finkenzeller, 2003)
Simultaneous transmitted radio signals may cause collision
interference to the receiver. In order for a reader to
communicate with multiple tags, some techniques of
collision-resolution protocol must be employed
Standard challenges Lack of a unified RFID standard
Lack of consistent UHF spectrum allocation for RFID
Cost challenges High costs of chip, inlay, assembly and licensing.
Successful operation of an RFID system will have to incur
considerable system design,
customization and configuration costs.
Patent challenges The royalty payments for IPs involved in this standard are
still unclear.
Infrastructure challenges RFID infrastructure available to track every tagged item
from the beginning to the end of the supply chain is really
a challenge
ROI challenges It is difficult to calculate the true returns based on limited
benefit information from pilot projects in segmented RFID
system installations.
Barcode to RFID migration
challenges
The migration from barcodes to the RFID system will not
only increase demands on system capabilities and
compatibilities but also increase costs on maintenance and
operation of both systems.
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2.8 Implementing RFID in Supply Chain
The implementation successful of RFID comes with a robust implementation framework and
the adherence to best practices in the industry. This section of the literature review discuses
and implementation framework proposed by Roberti (2003) and key success factors for its
implementation.
2.8.1 RFID Implementation Framework
An implementation framework for RFID is proposed by Roberti (2003).This framework can
be adapted to design an implementation framework for RFID which will be useful to retail
firms in Ghana.
Make the Return on Investment (ROI) Case for RFID
The process of developing a Return on Investment (ROI) case for RFID implementation
needs to be framed within an organization’s business context. For many organizations, RFID
usage is now being mandated by a powerful customer. For example, Wal-Mart has
announced that it will ask selected major suppliers to use RFID at the pallet and case levels
by the year 2005 (Roberti, 2003).
Choose the Right RFID Technology
A critical decision is the choice of the type of RFID technology the firm will adopt (Roberti
(2003). Key decision makers will have to take into account the needs of the following three
constituencies in making their RFID technology choice: the needs of their corporate
environment, the needs of their valued trading partners, and the needs of the industry to
which the firm belongs. A failsafe choice is the selection of the technology that has the
26
greatest adoption potential in the marketplace: not only does this encourage the observance of
industry standards, but also, the economic impact of wide technological adoption favors
lowering RFID hardware and software component prices.
Anticipate RFID Technical Problems
Firms need to anticipate a number of technical problems still facing the use of RFID
technology (Roberti, 2003). One of the challenges is that of false reads as a result of radio
waves being easily distorted, deflected, absorbed, and interfered with. Radio frequency portal
readers can still be “distracted” by metallic objects within their field of detection. For
instance, a portal reader could be distracted by a metal buckle worn by a storage clerk,
resulting in the RF signal being reflected in multiple directions and thus causing the reader to
pick up tag information from products two or three bays away.
Manage the IT Infrastructure Issues Data Management Concerns: The use of RFID
technology presents a number of data collection and usage issues for which IT managers
should be prepared. First, considering the volume of product data that will be incoming, there
is the issue of redesigning product/item master file data structures so that they are consistent
across the firm and its value chain participants (Roberti, 2003). Firms that have tracked
pallets and cases with RFID tags report at least a 30 percent increase in data that needed to be
processed.
Integration with Back-End Applications: Backend integration issues are also not
insignificant. At this time, software products designed to integrate RFID data with enterprise
wide applications are few and new in the market (Roberti, 2003). Firms are left practically on
their own to find ways to make RFID data interface with related business applications such as
accounts receivable, inventory management, and the like.
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Leverage Pilot Project Learning Experiences
A simple pilot project can be used to test different types of tags and readers, understand how
RFID works in the firm’s unique environment, observe required business process changes,
perform rudimentary back-end integration tasks, and upgrade directly affected hardware and
software infrastructure elements (Roberti, 2003). In deciding where to deploy pilot projects
using RFID, the advice is to choose those business processes where the most benefits can be
garnered within the shortest period of time in exchange for the initial pilot project investment
outlays that will need to be made (Roberti, 2004).
Implementation
A systematic and holistic framework for the implementation of RFID systems has been
proposed above. Specific issues that need to be considered before and during the
implementation of RFID include factors such as scoping, privacy and security ,lack of
standards, interference issues, cost control as well as motivation for adoption(Roberti, 2003).
2.8.2 Key Success Factors of RFID Implementation
Several studies have identified factors that contribute to the success or failure of a large
system development project. For example, Vatanasombut and Gary (1999) identified 51
success factors that contribute to the success/failure of data warehousing projects. Sammon
and Finnegan (2000) recommend ten-commandments of data warehousing success. DeLone
and McLean have reviewed the definitions and classified six major categories of an
information systems success and the corresponding measures. A multidimensional measuring
model was used to distinguish between the different success categories (DeLone & McLean
1992, 2003). Other researchers have provided lists of critical success factors (Watson and
Haley, 1997; Wixon and Watson, 2001).
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Technological Dimension
To succeed in deploying RFID systems, the organization needs to select the appropriate
hardware and software that it purchases or develops. Selecting suitable hardware devices for
the system will reduce the chance of system collision and interference (Ngai et al., 2010).
Since prototype testing is used to assess the availability performance of the system, it is
important that effective and reliable testing be conducted so as to expose potential problems
in the new process (Saygin et al., 2007). Since RFID is an evolving technology; it would be
very helpful if an expert or technician in that field could support the deployment of the
system (Ngai et al., 2010).
Managerial Dimension
As an RFID system could be implemented in a variety of areas in an organization, complex
objectives and visions may give rise to confusion. A clear vision can keep a project in focus
in order to align with the organization’s business goals. RFID implementation typically
constitutes a huge project, involving a lot of stakeholders. Introducing it into a business also
involves huge amounts of money. Good project management skills will streamline integration
across the stakeholders and achieve better project cost control. As the standards of RFID
technology are not yet established, a certain degree of risk exists when the technology is
deployed in an organization. The project team should have good risk management skills to
deal with various types of problems and issues that may arise during the implementation
process. Contingency plans should be developed and tested in advance so that unforeseen
incidents that may emerge can be addressed promptly and efficiently (Bhattacharya et al.,
2008).
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Social Dimension
During the process of developing the RFID system, the success of the project is determined to
a significant extent by the level of teamwork within the whole organization. During the
analysis stage, data on the current system needs to be collected; members of frontline staff
should be interviewed or onsite observations be conducted (Saygin, 2007).As a lot of people
are involved in the development process, communication is very important for information
transfers within an organization. During the stage of continuous improvement, feedback and
comments are given by the frontline users, and their opinions should be effectively
communicated to the management level so that proper adjustments are made in a responsive
manner (Ngai et al., 2010).As a new technology, implementing adequate and suitable training
could provide front‐line staff with precise knowledge about the system and break the myths
discussed among them. Gaining support across the organization could ensure that the system
is operating in the desired way.
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CHAPTER 3
METHODOLOGY
3.1 Introduction
The collection of data in carrying out any research is imperative to the success of the
research. A positive approach to collecting data for any research will enhance the validity of
the overall research work (Cuu, 2003). This chapter contains a discussion of the overall
strategy adopted to effectively and efficiently collect data and the analysis plan used for the
research.
3.2 Research Design
Burns and Groves (2003) define a research design as a blueprint for conducting a study with
maximum control over factors that may interfere with the validity of the findings. Hakim
(2000) compares a researcher designing a research project with an architect designing a
building. Decisions that are taken involve your being clear about the different quantitative
and qualitative data collection techniques.
3.2.1 Qualitative Research
Qualitative research is empirical research where the data are not in the form of numbers.
(Punch, 1998) Qualitative research is multimethod in focus, involving an interpretive,
naturalistic approach to its subject matter. This means that qualitative researchers study
things in their natural settings, attempting to make sense of, or interpret, phenomena in terms
of the meanings people bring to them. Qualitative research involves the studied use and
collection of a variety of empirical materials - case study, personal experience, introspective,
31
life story, interview, observational, historical, interactional, and visual texts - that describe
routine and problematic moments and meanings in individuals' lives. Accordingly, qualitative
researchers deploy a wide range of interconnected methods, hoping always to get a better fix
on the subject matter at hand. (Denzin and Lincoln, 1994)
3.2.2 Quantitative Research
Quantitative methods emphasise on objective measurements and numerical analysis of data
collected through polls, questionnaires or surveys. Quantitative research focuses on gathering
numerical data and generalizing it across groups of people (Babbie Earl, 2010).
Our research design is a qualitative research design; the subject matter of our research was
interpreted and analysed based on the knowledge from our research subjects as well as the
observations we make whiles carrying out the research. However, objectiveness of the
research was maintained at a very high standard.
3.3 Research Strategy
A research strategy is a plan of action that gives direction to your efforts, enabling you to
conduct research systematically rather than haphazardly (Saunders et al, 2009).
3.3.1 Case Study Approach
The case study approach is an empirical inquiry that investigates a contemporary
phenomenon within its real life context especially when the boundaries between the
phenomenon and context cannot be drawn clearly. The broad dimensions of a case study
approach are: single case study and multiple case study approach. The single case study
32
approach studies a case in its totality (holistically).Thus this approach studies units or
processes within a single case. On the other hand, multiple case studies and compares cases
in their totality (holistically). The multiple case studies various units within identifiable cases
(Saunders et al, 2009).
Our research strategy adopted a multiple case study approach precisely. The multiple case
study approach was appropriate for our research since we identified more than one case
which formed the basis for our analysis and from which we intended to arrive at our research
outcome.
3.4 Population and Sampling Technique
In carrying out a research it is necessary to identify the boundaries of the data to be obtained.
This is done through the identification of the population and sample of the research (Saunders
et al, 2009).
3.4.1 Population Description
The population refers to the total area of a research study (Saunders et al, 2009). The
population of our research is retail shops in Ghana. However due to how the large number of
retail shops in Ghana there is the need for us to obtain a sample from this population which
was done based on the sampling technique we adopted.
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3.4.2 Sampling Description
The sample represents a smaller section of the population. There are various types of
sampling techniques: Probability Sampling, Purposive sampling and No-rule sampling
(Barreiro et al, 2001) .The sampling technique that was used for this research is the Purposive
sampling. This technique is one in which the person who is selecting the sample tries to make
the sample representative, depending on his opinion or purpose, thus making the
representation subjective(Barreiro et al, 2001).
Following this technique, our sample from the population of retail shops in Ghana were
Melcom-Adum and Opoku Trading. Purposive sampling was chosen because of the purpose
of our research. Choosing these two companies would enable us to understand the general
retail situation in Ghana, especially because of the large sizes of these retail shops and the
high level of prominence they have achieved in the Ghanaian retail sector.
3.5 Data Collection Methods
Data collection methods are various ways of collecting information for a research work. Data
collected may be primary data or secondary data (Saunders et al, 2009).
3.5.1 Primary Data
Primary data refers to data collected by the researcher conducting the research (Saunders et
al, 2009). Primary data for our research was collected by using data collection instruments;
mainly interviews and observation. Among the various primary data collection techniques
were:
34
Observation
Observation entails the systematic noting and recording of events, behaviours; artefacts
(objects) in the social setting chosen for study (Saunders et al, 2009). Observation is one of
the techniques we adopted in collecting primary data. We identified and noted the various
businesses processes of our research subjects and the structure of their internal supply chain.
Interviews
According to Kahn and Cannell (1957), interviewing is a conversation with a purpose
(Saunders et al, 2009). We adopted this technique as our major source of collecting primary
data. We interviewed various managers in the focus organizations from operational to
strategic in order to ensure validity and consistency of the primary data collected. The
interviews were chosen due to their ability to help us achieve immediate feedback from the
respondents. The interviews were carried out at the premises of the respondents namely at:
Opoku Trading Premises, Adum, Kumasi and Melcom Limited, Adum, Kumasi. The
respondents for the interview were the general managers and supply chain managers of both
firms. The total number of interviewees was four: two from each of the retail firms. An
interview guide was used to ensure effectiveness of interviews.
3.5.2 Secondary Data
Secondary data refers to information that is collected by individuals other than the researcher
carrying out the research (Saunders et al, 2009). Secondary data for our research was
obtained through our literature review, which is one of the major sources of secondary data.
35
3.6 Data Analysis
A thematic analysis is one that looks across all the data to identify the common issues that
recur, and identify the main themes that summarise all the views have been collected (Judith
Green et al, 2007). This is the most common method for descriptive qualitative projects and
the method that was used in analysing data obtained in this research.
Notes that were taken during the interviews were analysed to extract themes that were present
in the responses of our interviewees. These initially identified themes were coded in order to
obtain a common structure for sorting out the data. The codes that were used for sorting the
data in our research included idle times and processing times tracking during shipment,
product quality checking among products in warehouse or on shelves, product shelf- life
determination, wrongly placed products detection, visibility-enhancing technologies in use. In
analysing data obtained in conjunction to barriers of RFID adoption, the following codes
were applied number of IT personnel, ideology about complexity of IT infrastructure,
ideology about cost of IT infrastructure, willingness to replace labour with automated
systems, internet availability, internet speed and reliability.
Triangulation was used for increasing the validity of our findings. Triangulation is a method
used to increase the validity of qualitative research findings, through comparing findings
from those different sources (Judith Green et al, 2007). The interview reports were
triangulated in analysing data obtained in this research to ensure that valid conclusions were
being drawn.
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3.7 Organisational Profiles
Our focus organizations for the research were Melcom Limited –Adum and Opoku Trading
Limited.
3.7.1 Melcom Limited –Adum
Melcom Adum is a branch of Melcom Limited, established in 1989.Opened around 2002; the
branch has being operating for about 15 years and is one of the top retail firms in Kumasi.
The retail firm is located in the heart of Adum, a major business district in Kumasi.
Electronics, Groceries, Kitchenware, Clothing and Stationary form some of the basic line of
products that the retail firm deals in. Some of its major suppliers include Samsung, Akai,
Hitachi, Master Chef, Century Plastics, Unilever and Nestle. The branch has about 40
workers both on the shop floors and working in the warehouse attached to it. Melcom Adum
has a wide customer base and could be said to be one of the highest earning retail firms in
Kumasi. Information Systems that are currently in use include Barcode and Enterprise
Resource System.
3.7.2 Opoku Trading Limited
Opoku Trading Limited is a major retail shop in Kumasi. It was established around 1999 and
has been one of the oldest still existing retail firms in Kumasi. Initially operating at a sole
location, it has recently begun to establish branches such as the KNUST branch recently
opened. The retail firm is located in Adum, a major business district in Kumasi. It deals
majorly in household provisions and acts as a discount shop where goods can be bough at the
lowest prices. Its major Suppliers include PZ, FC Johnsons, Unilever, Nestle, and other major
suppliers of household provisions. It has about 25 workers both on the shop floor and in the
37
Warehouse attached to it. Opoku Trading could be considered as the next retail shop next to
Melcom in terms of customer base. Information Systems that are currently in use include
Barcode and POS systems. It has recently began to diversify into wholesaling of goods.
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CHAPTER FOUR
PRESENTATION OF RESEARCH FINDINGS AND DATA ANALYSIS
4.1 Introduction
The data collection for this study was done in April 2014.The retail firms that were used for
this study are Opoku Trading Company Ltd and Melcom-Adum. The General Managers and
Supply Chain Managers were interviewed for both companies. This was done in accordance
with the research objectives and questions raised in chapter one.
4.1.1 Interview Participants
Table 3 shows the retail firms used for the study as well as the number and categories of
participants that were interviewed. The General Manager and Supply Chain Managers of
each firm were interviewed
Table 3: Interview Participants Data
Participants Opoku Trading Melcom-Adum
General Manager 1 1
Supply Chain Manager 1 1
Total 2 2
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4.2 Findings
The outcome of our data collection will be clearly outlined in this section in line with the
research objectives of the research.
4.2.1 Establishing Supply Chain Visibility in retail firms using RFID
Radio Frequency Technology (RFID) can be used to establish Supply Chain Visibility in
retail firms. Our literature review provided us with useful secondary data in establishing this
fact. RFID applications in retail supply chains in establishing supply chain visibility include:
Establishing Inventory Visibility in the Supply Chain
RFID can be used to track packaged goods from factory to retail floor, and produce from
farm to grocery cooler; Product is automatically registered as it passes through RFID-
equipped dock doors and thruways, providing location information; Empty case boxes and
RPCs are captured as they leave the store floor, indicating usage (Allien Technology
Corporation, 2008).
Establishing In-Store Operations Visibility
RFID-enabled physical inventory using an RFID-equipped cart with a high-performance
RFID reader can be used to count tagged product simply by moving the cart down each aisle
this information is immediately visible at the client system (ATC, 2008).The location of
pallets can automatically be captured to provide forklift drivers with accurate locations of
pallets of products for quick retrieval.
Establishing Product Brand Visibility
RFID can be used to establish visibility in product brands as they pass through the supply
chain. The product tag contains both a customer-writable EPC number and a factory-set,
unique tag ID (TID) number; The TID cannot be changed by a would-be counterfeiter, so an
item with the correct pair of numbers is authentic. A quick check against a database using a
40
handheld or desktop reader can verify authenticity by confirming properly paired numbers
(ATC, 2008).
Establishing Visibility in Asset Tracking
RFID can be used to track reusable plastic containers (RPCs), pallets, roll cages and other
assets as they move through the supply chain or within a closed loop material handling
process; Assets are automatically registered as they pass through RFID-equipped dock doors
and thruways, providing location information in realtime to retail vendors.(ATC, 2008).
4.2.1.1 Possibilities for Establishment of Visibility with RFID identified in retail firms
Establishing Supply Chain Visibility using RFID requires the identification of visibility
loopholes in the Supply Chain of the firm in question and patching these loop holes using
RFID capabilities. Several loopholes were identified in the firms that prove that their supply
chains were ridden with gaps that reduce flow and visibility of information. Though not all
Supply Chain visibility problems can be solved using RFID Technology, our findings
revealed that retail firms’ major Supply Chain visibility challenges could be handled to a
great extent by correctly applying RFID.
Another condition revealed that, for supply chain visibility to be established with RFID,
factors that may preventing the adoption of the technology needs to be within control of the
firms. The barriers to RFID adoption that were identified were within the control of the firms
and present a suitable condition for RFID to be applied to achieve supply chain visibility. The
case of RFID’s capability to be utilized in establishing Supply Chains is therefore made, in
that the findings presented the conditions necessary for this to be possible. The literature
review was used as a major tool in achieving this objective. The Summary of the items in the
literature review that make a case for use of RFID in establishing supply chain visibility are
as follows.
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4.2.2 Opportunities for RFID Implementation in Ghana’s Retail sector
In identifying the opportunities for RFID implementation in Ghana’s retail sector, we realized
that an approach towards finding visibility loopholes in the retail sector would invariably
translate into opportunities for the implementation of RFID in Ghana’s retail sector.
Supply Chain Visibility Loopholes
In both Opoku Trading and Melcom, the determination of overall stock levels was done by
counting manually through a stock taking process carried out at the end of everyday’s
operations. This meant that it was impossible to track stock levels in the middle of the day
when stocks had not yet been taken. Stock taking was done for stocks in the warehouse as
well as on the sales floor (on the shelves).A statement made by Mr. Boamah, general
manager at Opoku trading reflected this.
“The key activity at the end of each day’s work at Opoku Trading is counting our
stocks in order to balance our books. The counting is done multiple times by two
workers and the figures must all tally. This is a tedious task but it must be done since
it is the only way to check for accuracy of our stock levels.”
Out of Stock situations were prevented at both firms by using a computer aided methods. By
entering each purchase that was made as well as sales and measuring it against daily updated
inventory levels it was possible for the computer software to detect stock-outs for a particular
product and raise an alert.
At both retail firms purchase order fulfillments were detected and recorded manually. At
Opoku trading this was done through registering fulfillment of an order with the operations
officer and then the quantity and amount involved were entered into Purchases ledger as well
42
as into the computer software. Melcom followed a similar process except that records of
purchase order fulfillment records were solely kept using their ERP software.
Due to discounted prices offered at both stores, it was possible to attract bulk orders coming
in form individuals or businesses. Such orders had to be prepared for dispatch or pick-up and
this included ensuring that the right specifications of the orders were met. To ensure this the
operations manager or a worker is assigned to check for the accuracy of the orders to prevent
returns or incomplete order fulfillments.
Both firms being retailers relied on timely delivery of goods by their suppliers or third-party
carriers who they worked with. Occasional breakdowns will mean stock-outs, lost sales and
customer disappointments. However because there were no technologies to check in real-time
the state of goods that were being shipped to them, they had to be prepared to have such
lapses ones in a while.
At both retail firms the responses showed that there was no way of checking for product-
shelve life or to immediately detect misplaced products and their locations. Tracking of the
number of days that each product had spent on the shelves was quite difficult due to daily
replenishment and the unavailability of technology to individually identify each product unit
while on shelves. It was also impossible to detect misplaced products until stock taking
revealed inconsistent records and even in such cases it was not possible to find the exact
locations of these products. Table 4 below shows various visibility loopholes identified for
the retail firms.
43
Table 4: Visibility loopholes data for Opoku Trading and Melcom-Adum
Criteria Opoku Trading GM SM Melcom-Adum GM SM
Stock Levels Determination
By counting manually By counting manually
Out-of-Stock prevention and
control
By using a Computer
Software and
manual monitoring.
By using integrated
(ERP) Software.
Purchase orders fulfillments
detection and recording.
Through confirmation with
Operations Manager on
arrival and recording into
books and PC
Through confirmation
with General Manager
on arrival and
recording into system
Tracking of individual stock
levels of goods on the shelves.
By manually counting By manually counting
Sales Orders due for dispatch
inspection.
One worker is assigned to
checking
for their accuracy
The operations
manager is responsible
for ensuring their
accuracy
Idle times and processing times
tracking during shipment.
They only get concerned
when goods get delayed by
more than three days.
They work closely
with carriers and rely
on them to deliver at
most times.
Product Quality checking among
products in warehouse or on
shelves.
It is checked manually by
store Operations officer.
They are checked in
the stores manually by
the warehouse
manager and
on the shelves by
sectional heads.
Product shelf- life
determination.
This is not checked. This is monitored by
sectional heads but no
proper way to
document
them.
Wrongly placed products
detection
There is no way to detect
this unless counting reveals
it
There is no way to
detect this unless
counting reveals it
Visibility-enhancing
Technologies in use
Barcodes ERP, Barcode
Visibility-enhancing Technology
considerations
None None
GM-General Manager, SM-Supply Chain Manager
44
4.2.3 Barriers to RFID implementation by retail firms
Several barriers to RFID adoption/implementation identified in Opoku Trading and Melcom-
Adum. The number of IT personnel was a clear limitation for Opoku Trading as they had
only one IT personnel. This will not be enough to support the implementation of RFID.
Responses Obtained from Opoku Trading showed that their ideology about IT infrastructure
was that it was complex and a hectic to implement. Mr. Boamah General Manager of Opoku
trading gave a general perspective of the firm’s strategic view of IT. In response to a question
he said
“We have had several failed and successful attempts to deploy various IT technologies,
and we understand the challenges that come with it. IT implementation is a very
complex endeavour and therefore careful consideration must be given before deciding
to embark upon it.”
Such a mentality will be an obstacle towards implementation of hardcore technologies like
RFID. Melcom on the other hand did not view technology in this light; according to
responses obtained, they were more comfortable with implementing technologies than their
co-retailers. This will make it easier to sell an RFID idea to them.
On Cost involved in automation of processes using technologies, both Opoku Trading and
Melcom Managers attested to the fact that it was a costly venture to undertake. Such
statements were made in reference to previous technologies that had been implemented.
The reluctance to partially substitute labour for technology was unpopular with Opoku
Trading where one of their main business focuses was to help especially disabled people by
providing them with jobs. Melcom on the other hand though sensitive about cutting down on
labour costs through IT admitted that their core concern as a business is to make profit and
45
lower costs to the customer; hence they were willing to go for a technology that may reduce
their use of labour.
Both Opoku Trading and Melcom-Adum have an internet service subscription. At Opoku
Trading the speed of the internet was assessed to be approximately 120kb/s since it takes
about 1 hour 20 minutes to download a movie and Melcom about 200kb/s since it takes about
50 minutes to download a movie. For Opoku Trading the internet reliability was fairly low
whereas Melcom has higher internet service reliability. Table 5 below provides data on the
barriers to RFID adoption/implementation identified in Opoku Trading and Melcom-Adum.
Table 5: RFID implementation Barriers data for Opoku Trading and Melcom-Adum
Criteria Opoku Trading Melcom-Adum
GM SM GM SM
Number of IT personnel 1 1 3 3
Ideology about Complexity of IT
infrastructure
Complex Very Complex Not
Complex
Not
Complex
Ideology about Cost of IT infrastructure Costly Very Costly Very Costly Very Costly
Willingness to replace labour with
automated systems
No No Yes Yes
Internet Availability Yes Yes Yes Yes
Internet Speed Average
120kb/s
Average
120kb/s
Average
200kb/s
Average
200kb/s
Internet Reliability Fairly
Reliable
Fairly Reliable Very
Reliable
Very
Reliable
GM-General Manager, SM-Supply Chain Manager
46
4.2.4 Discussion & Analysis
The findings revealed that Opoku Trading and Melcom-Adum have shortcomings in their
internal and external supply chain visibility. These Visibility loopholes can be juxtaposed
against RFID capabilities to determine the extent of impact that RFID will have on enhancing
their supply chain visibility. The extent of RFID impact on visibility is determined by the
percentage of loopholes that RFID can have an impact on and the extent to which RFID can
curb each identified loophole.
Stock level determination can be done using RFID Technology. This can be done by tagging
items on the retail store floor and using antennas to provide constant real time inventory
count. RFID impact on determining inventory levels is very strong due to the provision of
real time information on inventory levels at all times.
RFID enabled physical inventory can also be used to prevent stockout situations by providing
constant information on inventory in between manual stock counts. This is particularly useful
because inventory with high turnover rate (Fast moving Consumer Goods) have been known
to lead to stock outs when manual stock level determinations are used in between periods.
From the table it can be depicted that RFID has a strong impact on preventing stock-outs due
to its ability to accurately report on inventory levels at all times without having to rely on
annual counting or user initiated scanning with barcodes.
Purchase order fulfillments can be automatically detected using RFID by providing RFID
thruways or alleys where incoming purchased items can be tagged and details of their
quantities and specifications can automatically be scanned and entered into system. From the
table it can be depicted that RFID has an average impact on the visibility it can achieve when
applied in to purchase order fulfillments. This is because it will require the collaboration of
suppliers to tag items.
47
RFID enabled shelves(Smart Shelves) can be used to provide real time information on the
quantities of products in the shelves in order to provide accurate information about products
which are on the shelves and their life span on the shelves. This is very useful to retail stores
where large parts of inventory are kept on shelves. From the Table it can be depicted that the
impact of RFID is strong due to the ability of smart shelves to broadcast accurate data on
products contained in them.
Sales orders that are due for dispatch have to be inspected accurately in order to prevent
inaccurate order fulfillments and the associated cost of returns. By using RFID packed orders
can be ran through an RFID equipped alley-way were all the products contained in it can be
matched against that specified by the customer. From Table 6 it can be depicted that RFID
impact on handling sales orders due for dispatch is Average since it will still require some
human intervention.
RFID can be used with geographically positioning system to ensure that the shippers conform
to best practices in terms of idle times and processing times while transporting goods. By
Using RFID real time data can be provided on the exact location of the product at every point
in time and whether the vehicle is moving or has stopped. By placing RFID tags at various
parts of the shop floor and in the various sections, misplaced products either on the shop floor
or warehouse can easily be detected as each antenna will be programmed with specific units
of a product that must be found in a location. The Table shows that the impact of RFID on
ensuring conformity to shipping standards is average due to its dependence on geographic
positioning systems. Table 6 below shows the impact of various RFID capabilities on
identified visibility loopholes in establishing supply chain visibility.
48
Table 6: Measuring the Impact of RFID on Visibility in Opoku Trading and Melcom-
Adum
Criteria RFID
Applicable
(Yes/No)
RFID Application Weighted
Impact of
RFID
Stock Levels Determination
Yes RFID-enabled physical inventory
Out-of-Stock prevention and control
Yes RFID-enabled physical inventory
Purchase orders fulfillments detection
and recording.
Yes RFID-enabled physical inventory
Tracking of individual stock levels of
goods on the shelves.
Yes RFID-enabled shelves
Sales Orders due for dispatch
inspection (Right product, Right
quantity, Right quality, Right time,
Right documentation)
Yes Tag pallets and pallet-racks.
Idle times and processing times
tracking during shipment.
Yes An active RFID tag could be used
with a real-time location system
Product Quality checking among
products in warehouse or on shelves.
No Not fully developed
Product shelf- life determination.
Yes RFID-enabled physical inventory
RFID-enabled shelves
Wrongly placed products detection.
Yes RFID-enabled physical inventory,
4.3 Proposed RFID implementation Framework
The Framework for an effective RFID implementation is paramount to the success of
establishing supply chain visibility both in the internal and external supply chain of retail
firms. The proposed implementation framework seeks to build on key success factors that
Low Average High
49
have been identified for successful implementation and also strike a balance with respect to
the Ghanaian context focusing on the barriers and challenges that have been identified.
Phase 1: Make a Business Case
In making a business case for RFID implementation, the pivotal factor of Return on
Investment has been generally identified and must be analysed by the company that seeks to
implement RFID. In using this proposed framework, management of Retail shops in Ghana
would have to consider holistically, the issue of Returns for the investment they are making
in RFID. Research carried out by Thomas Pisellohas shown that RFID implementation has
provided significant returns such as; Cost Reduction, Improved operating Efficiency and
Strategic Advantage. The process of developing a Return on Investment case for RFID
implementation needs to be framed within an organization’s business context (Roberti,
2003). Thus, companies would have to identify what their specific goals are and how
important RFID can be in reaping both financial returns and returns related to
operational efficiency.
Companies can use a cost-benefit analysis module which would help in matching the
cost of investing in an RFID implementation against the short and long term benefits
that are most likely to accrue to the company’s advantage. In making a business case,
these major issues must be considered:
a. Cost of RFID technology
b. Cost of implementation
c. Level of operational efficiency after implementation.
d. Level of Strategic advantage after implementation
e. Level of Cost cuts after implementation.
50
Thomas Pisello argues in his research that after all these considerations have been
made a company can almost be sure that cost reduction, strategic advantage and
operational efficiency will increase and companies that invest in RFID implementation
will have a short payback period for their investment whiles reaping the added benefits
of RFID.
Phase 2: Selection of Right RFID Technology
The success of an RFID implementation depends a lot on choosing the right RFID
technology. In the selection of the right RFID technology, companies in Ghana would
have to consider the various frequency standards. Currently in Ghana, the national
communication association does not allow ultra-high frequencies. This means RFID
tags and readers must be within the range allowed in Ghana.
One other factor in selecting the right technology is the general acceptance and
interoperability with other parties especially suppliers of the focal firm that is
implementing RFID. In order to ensure wide adoption by other trading partners, the
selection of RFID technology must have considerations of economic impact across the
value chain (Roberti, 2003). RFID technology selected by the focal company
implementing the RFID technology must be such that other trading partners can easily
adopt the technology and integrate with the company.
Phase 3: Manage Human Resource and Information Technology Infrastructure
This stage of the implementation framework is very crucial since human resource and
information technology form a major part of the implementation of RFID technology.
In managing human resource, companies are to identify the skill set needed to see
through the RFID implementation from beginning to end as well as the aftermath of the
51
implementation. In many cases, consultants are contracted to do the actual
implementation. However, continuity is very essential in an RFID implementation.
Thus employees of the company must be trained in the usage of RFID, if operational
excellence is to be achieved through its use. Training of employees can be done by the
consultants who are specially contracted to do the implementation.
RFID technology requires other it infrastructure which are needed to ensure efficiency
of the technology. Companies need to have up-to-date computer systems that can be
easily synchronized with the RFID technology. As part of Information Technology,
software used by companies must be compatible with RFID technology so that data
issues can be easily dealt with. The need to manage It infrastructure and software is
essential because if properly managed data migration and recording can be easily
achieved.
Phase 4: Anticipate RFID Technical Challenges
This stage of the implementation framework considers the possibility of RFID challenges,
more especially technical challenges. Companies implementing RFID must be prepared for
certain technical issues that may arise especially in the early stages of the aftermath of the
implementation. Among the technical challenges is false read due to radio waves being
easily distorted, absorbed, deflected, and interfered with (Roberti, 2003). These
technical issues do not in any way suggest that RFID technology is prone to many
problems. It is important to note, that this stage helps companies to be prepared for any
such challenges and not to suggest that these challenges no matter what will occur.
52
Phase 5: Conduct Pilot Project
This implementation framework proposes a pilot project in order to ensure smoothness in the
implementation of the RFID technology. The pilot project suggests that actual usage of the
RFID technology begins in a particular functional department of the company. At this stage
also different tags and readers can be tested to help monitor compatibility issues (Roberti,
2003). The functional department selected as the pilot department has to be one of the
departments that is core to the retail activities of the company so that the outcome of the pilot
project can be properly measured and analysed. The success achieved in that functional
department will invariably translate into the usage of the technology in other departments.
The advantage of the pilot project is that, data concerns are well managed and integration
with existing systems becomes easier and more efficient.
Figure 4: Framework for RFID implementation (Authors Construct, 2014)
Phase 1:
Make a Business
Case
Phase 2:
Selection of Right RFID Technology
Phase 3:
Manage Human
Resource and IT
Phase 4:
Anticipate RFID
Challenges
Phase 5:
Conduct Pilot Project
53
CHAPTER 5
SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Summary of Findings
The findings of this thesis have been summarised below to cover the objectives that were put
forward at the beginning of the research. These areas include establishing supply chain
visibility in retail firms using RFID, opportunities for RFID implementation in Ghana’s retail
sector, barriers to RFID implementation by retail firms and the proposed RFID
implementation framework.
5.1.1 Establishing Supply Chain Visibility in retail firms using RFID
Our findings revealed that establishing supply chain visibility in the retail firms with RRFID
is possible through establishing inventory visibility, establishing in-store operations visibility,
establishing product brand visibility and establishing visibility in asset tracking.
Possibilities for RFID implementations were also identified in the two conditions that were
met, the ability of RFID to plug identified loopholes and the possibility of implementation
framework to address barriers to adoption.
5.1.2 Opportunities for RFID implementation in Ghana’s retail sector
Opportunities for RFID Implementation that were identified in both retail firms (Melcom and
Opoku Trading) include manual stock level determination, manual detection and recording of
purchase order fulfillments, manual determination of order fulfillment accuracy, Inability to
track stock levels on the shelves and their shelf life and inability to track wrongly placed
products on the shop floor or in the warehouse.
54
5.1.3 Barriers to RFID implementation by retail firms
For the two retail firms Opoku Trading and Melcom our findings also revealed the major
barriers to RFID adoption to be understaffing of IT personnel, ideologies that IT
infrastructure and implementation is complex and costly, unwillingness to replace labour
with automated systems, low internet speed and unreliability of internet speed as well as high
cost of internet bandwidth.
5.1.4 Proposed RFID implementation Framework
Our findings also provided a solid background for a framework by which RFID can be
implemented in the bid to increase Supply Chain visibility in the retail industry. The
processes of the framework are ordered as making a business case for RFID, selection of
right RFID technology, manage human resource and IT, anticipate RFID Challenges, conduct
pilot project.
5.2 Recommendations
In carrying out this research, we realised an opportunity to design and propose an RFID
implementation framework for retail companies in Ghana. This section of this chapter, which
is our recommendation, will discuss a proposed RFID implementation framework.
In this section, we have outlined certain very important recommendations that will be useful
to retail shops in Ghana as they seek to enhance supply chain visibility.
The Proposed RFID framework that has been discussed in chapter 4 can be used by retail
shops in Ghana. The framework considers very important factors related to the retail sector in
Ghana which have been incorporated in the design of the framework. It is our prior
55
recommendation then that, a critical look is given to the framework by retail shops in Ghana
so that RFID implementation can experience the success these retail shops expect.
Additionally, some retail shops feel that because they are in their developing stages, a move
to adopt an RFID approach may have huge financial consequences. For such retail
companies, we recommend that they use supply chain technologies which are within their
budget scope. It is worthy to note that the RFID technology has been a build up of already
existing technologies. In that respect it would not be out of place if retail shops in a Ghana
can use less expensive technologies to enhance supply chain visibility.
Retail companies in Ghana can use bar codes which provide many advantages in relation to
supply chain visibility. The ability of barcodes to provide relevant information on products
makes it a very useful technology with immense benefits. The use of barcodes by companies
in the initial stages of business's development will offer them (retail companies) value for
money whiles providing enhanced supply chain visibility.
In addition, we recommend that retail companies in Ghana have well structured
documentation on their technology needs, as well as a plan for the adoption of new
technologies in the future. The purpose of this document is to help give focus to technology
requirements of these retail companies. This document will help give IT personnel
fundamental knowledge of what the company's expectations are with regard to the kind of
technology that can help enhance supply chain visibility. It will be necessary for this
document to be reviewed at reasonable intervals so that updates on new technology can be
incorporated.
56
5.2.1 Recommendations for further research
This research treated its objectives by using firms that are in the retail industry; it is our
recommendation that future research may be conducted using RFID-enabled firms like
Armajaro and other firms who also use this technology in order to further establish the
findings of this research. We further recommend that an action research be carried out to test
the framework that has being proposed in this research. RFID standards present a
fundamental challenge to the use of RFID in Ghana and we recommend that a research be
carried out to find out how standards can be stipulated in a manner that supports business
operation of RFID technology.
5.3 Conclusion
Supply Chain visibility has proven generally to improve supply chain performance. In recent
times, the advent of new technology such as RFID has enhanced visibility which has
invariably translated into desirable levels of excellence in operations. The RFID approach to
enhancing visibility has without a doubt become a mainstay in supply chains. The Retail
sector in Ghana which is a major contributor of the economy can certainly experience
tremendous upsurges in operational excellence as visibility is increased through the adoption
of RFID. The RFID approach may seem to have major economic concerns but its benefits
which can help transform the face of the retail sector in Ghana cannot be undermined. A
critical analysis of RFID, which has been encapsulated in this thesis, must be looked at by
various parties of the retail supply chain in order to ensure a multiplicity of retail sector
growth.
57
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APPENDIX A
INTERVIEW GUIDE
The following questions will be asked during the interview with the Supply Chain managers
of Opoku Trading and Melcom Ghana Ltd.
Section A: Stock Level Determination
1. How are Stock levels determined currently?
2. How do you recognize Out-of-Stock situations?
3. How are purchase order fulfillments detected and recorded?
Section B: Stock Tracking
4. How do you track individual stock levels of goods on the shelves?
5. How do you Inspect multiple Sales Orders due for dispatch. (Right product, Right quantity
Right quality, Right time, Right documentation)
6. How do you track Idle times and processing times during shipment of Goods to or from
you?
7. How do you check for product Quality deficiencies among products you have in store or
on the shelves?
8. How do you track for how long products have been on the shelves or in the warehouse?
9. How do you find misplaced products either in the wrong place on the shelves or in the
warehouse?
62
Section C: Technology Considerations
10. What are the current technologies that are being implemented to improve visibility in
your supply chain?
11. What are the current technologies being considered to solve your supply chain visibility
problems?
12. How many personnel do you have currently working in IT in your firm?
13. Do you think IT implementation is hard and too costly?
14. Would you consider a solution that may require you to lay off workers? Are you ready to
handle the emotional pressure required?
15. Do you have access to high speed internet? How fast is your current internet? How long
would it take you to download a standard movie on your current ISP?