Mobile RFID - A Case from Volvo on Innovation in SCM

Utilization of Radio Frequency Identification (RFID) is often presented as improving supply chain management even though there are still few in-depth studies that support the hype. In this work, the feasibility of a mobile RFID solution in the automotive business-to-business of Volvo has been studied. Currently, due to costs of fixed infrastructure installations, many RFID solutions can only be financially justified in a setup with high volumes and high value items. In this setup, an innovative mobile RFID solution, utilizing cellular networks with data package communication (GSM/GPRS), web technology and integration has been evaluated. This is done from the perspectives of operational reliability, usability and productivity. The empirical evidences come from more than 3.000 readings that together with qualitative research explore a unique context of mobility in which existing infrastructure is leveraged. The advantages and disadvantages of the solution are summarized into a business case feasibility. Recommendations include design constrains and development strategies.