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Internet of Things (IoT) Embedded Future Supply Chains for Industry 4.0: An
Assessment from an ERP-based Fashion Apparel and Footwear Industry

Article  in  Journal of Supply Chain Management · January 2017

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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

Internet of Things (IoT) Embedded Future

Supply Chains for Industry 4.0: An
Assessment from an ERP-based Fashion
Apparel and Footwear Industry
M. Aabid A Majeed #1, Thashika D Rupasinghe*2
#
Sheffield Hallam University, United Kingdom
1
[email protected]
*2
Department of Industrial Management, University of Kelaniya, Sri Lanka
2
[email protected]

Abstract— In this competitive business world most of Keywords— Supply Chain Management, Internet of
the supply chains are struggling to sustain Things, Industry 4.0, SAP, ERP. CRM, Fast Fashion
competitively in the global supply chain due to its Supply Chain, Apparel and Footwear, Fashion
increasing complexity in each phase of the supply Management, Inbound Logistics, Outbound Logistics,
chain operations. Many companies are facing Future Factories.
financial difficulties and some have shut down due to
poor supply chain management practices. Companies
have to be smarter by incorporating the necessary 1. Introduction
technologies to be more competitive and sustain in the
global supply chain, that processes can be better
managed and automated where necessary. Most The world is constantly changing and evolving at a
companies fail due to poor integrations of technology rapid rate, this has affected many companies and
in their supply chain. It is important that companies the entirety of their supply chain including all of its
be smarter in order to strive hard to reduce cost, actors. This dynamic nature has put pressure on
improve customer services and to increase return of companies to innovate, collaborate and to redesign
investments throughout the supply chain. While a few
business processes that best fits their business,
industries are taking a major leap; it is vital for other
hence, this calls for incorporation of various
companies to adopt to the changing nature of the
digital supply chains and embrace industry 4.0,
technologies and integrated enterprise solution to
leveraging Internet of Things (IoT). The primary goal manage complex and intricate processes. With the
of this study is to improve inbound and outbound inception of Internet of Things (IoT) it is important
operations to better manage and optimize and to understand how Information and Connectivity
automate operations in an ERP system through the will revolutionize tomorrow’s supply chain in the
use of RFID technology and Business Application context of industry 4.0 [1]. Radio Frequency
Programming Interface (BAPI) technology in SAP®. Identification (RFID) is one of the technologies
The existing ERP system was thoroughly analysed
that offer various benefits in the aspect of
using mixed method approach and was followed-up in
automating various business processes and
assessing how transactions can be better executed in
the system. The time taken to execute various process
integration between various devices in the value
in inbound and outbound operation was measured in chain [2].
two iterations and was analysed to propose a means of
improving inbound and outbound operations with the RFID technology was introduced in the last 1940s
use of technology. The study derives a conceptual however, due the relative high cost per unit
framework to enhance inbound and outbound compared to the widely used bar code, the
operations in ERP for Fashion Apparel and Footwear implementation of this technology took place in the
Industry.
1980 for tracking/ identification purposes and was
limited [3]. By extensively streamlining data
______________________________________________________________
capturing procedures, RFID technology also helps
International Journal of Supply Chain Management
IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) to leverage process accuracy by reducing and
Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/) eliminating conventional error-prone manual
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Int. J Sup. Chain. Mgt Vol. 6
6, No. 1, March 2017

processing, and helps to reduce labour costs and various supply chain complexity business
improve accuracy. RFID enables to capture and connectivity, collaboration, global sourcing
sourci and the
provide real-time
time and current information across use of various advance technology are areas where
the entire supply chain thus improving visibility retailers will have to increase their focus on in
which is crucial in the 21st century. RFID solutions order to be reverent, competitive and to better
can help organizations lower operational costs and manage supply chain complexity in the digital era.
increasee throughput at different stages of the value Retail supply chain consists of the entities –
chain [4]. suppliers, manufacturer, distributor, retailer and
consumer as primary actors this is depicted in the
figure 1 below [6].
2. Literature Review

2.2 2.1 Supply Chain Management

Council of supply chain management professionals

(CSCMP) defined supply chain as “Supply Chain
Management encompasses the planning and
management of all activities involved in sourcing Figure 1. Testing data- load current (amperes)
and procurement, conversion, and all logistics
Source: Ref. [16]
management activities. Importantly, it also includes
coordination and collaboration with channel
partners, which can be suppliers, intermediaries,
third-party service providers,
ers, and customers. In 2.4 Fashion and Life Style (Apparel
essence, supply chain management integrates
and Footwear) Industry
supply and demand management within and across
companies. Supply Chain Management is an
integrating function with primary responsibility for One of the most profitable markets in the world is
linking major business functions and business the fashion and lifestyle industry and it is defined
processes
ocesses within and across companies into a to be a billion-dollar
dollar industry employing millions
cohesive and high performing business model. It of professions all around the word. Fashion
includes all of the logistics management activities industry is one of the most dynamic supply chains
noted above, as well as manufacturing operations, in the modern world and due to this nature there are
and it drives coordination of processes and new challenges and many opportunities presented.
activities with and across marketing, sales product With the fashion industry going global, consumers
design, and finance and information technology”
technology
all over the world have been affected by this fast
[7].
and constantly evolving industry [8 [8] and this is
disrupting consumer er behaviour in the global
2.3 The Retail Supply Chain
market.

“Retailing is the set of business activities that adds Over the years the fashion industry produces new
value to the products and services sold to products at a rapid rate and this has incorporated
consumers for their personal or family use” [5]. various new business operations for different types
However, in the modern world retailing is not only of products and is making supply chains more
about selling products and services in various retail complex each year. With the removal of trade
outlets
ets but through different channels (Omni- (Omni barriers in various countries the growth of the
channel). Retailers work as an intermediate party internet is growing and consumers use this means
between the manufacturer and the consumers who for purchasing merchandise online, this has
purchase product and services. Due to the dynamic disrupted the fashion industry making it a global
nature in the retail world and unexpected consumer competitive industry.
behaviour retail companies are facing many
different challenges in the present world and with Demand for fashion is increasing and it requires
the evolution of the industry this poses a major quick responses from the supply chains, this
threat to the existing business models. Due to enforces stakeholders to be more quick and
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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

responsive to these demands hence, fashion Finkenzeller discusses and gives a rudimentary idea
industries are diverting their focus from forecasted and introduction to RFID as a technology that can
demands to leveraging real-time data to better be used to automate operations as well as sample
respond to customer needs due to this demanding applications such as container identification for the
nature of customers there is a requirement for chemical industry or in the waste disposal and
fashion retailers to produce the right product at the identifications in the automobile industry [14].
right time, this is due to customers requirement for Which explains even at the time it was mainly
needing unique products in the market and has RFID technology mostly was used for the purpose
forced supply chain to react to these requirement of identification purposes.
really fast [9].
2.6 Introduction to Internet of Things
(IoT)
2.5 Review on RFID
As Internet of Things continues to develop day by
According to Thonemann, after the in day, further development to this is estimated by
implementation of RFID technologies, Wal-Mart related technologies that would take it to the next
and Procter & Gamble simultaneously reduced level concepts such as Cloud computing, Big Data,
inventory level by 70% thereby improving their robotics, Semantic technologies and services will
service levels from 96% to close to 99% which is a help develop this even further and are in a way
considerable amount in terms of revenue. This also dependent. Main objective of IoT is to enable
helped to reduce various administrator expenditures various electronic devices to be connected anytime
by re-designing their supply chain processes [10]. and anywhere in the world with mealy an access
point or service.
Benefits of supply chain management can be
achieved by integrating and the use of “information Internet of Things is known to be the new
technology and the construction of integrated revolution of the Internet. Objects and devices are
supply chain information systems” proves that it is more intelligent and they make themselves
important that supply chain adopts to the latest recognizable and they obtain intelligence by
technologies available to be current in the global making various decisions as per their configured
context [11]. process this is mainly due to the fact that they can
communicate between them with a common
Literature highlights that among the organizations understanding protocol. These objects and devices
which they investigated, those who exploit can access information that has been aggregated by
technology and integrate to their supply chain physical objects, devices and sensors, or they can
operations and redesign their business models be components of an intricate network of services.
where more successful compared to other This transformation is enabled with the emergence
companies [12]. This is evident that technologies of cloud computing capabilities and the transition
that help to redesign and improve business process of the Internet towards IPv6 protocol with an
are vital for any organizations sustainability in the almost unlimited addressing capacity which was
global supply chain. lacking in IPv4.

Stadtler introduces the concept of “House of SCM” The Internet of Things provides solutions based on
which states that coordination of information the integration of various information technologies,
throughout the supply chain is one of the which includes hardware and software used to
fundamental building blocks [13]. According to his store, retrieve, and process information and
study he stresses on the fact that information and communications technology which includes
communication technology is essential in the electronic systems used for communication
modern supply chain to efficiently manage and between individuals or groups of devices. The rapid
automate various tasks in the supply chain to better development and convergence of information and
streamline the supply chain with reliable and communications technology is taking place at three
efficient data. layers of technology innovation: the cloud, data and
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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

communication pipes/networks, and device [15], as

presented in Figure 2 below. The future factory concept is mainly oriented
towards ensuring and enabling the availability of
all relevant information for processing in real time
this will be feasible through the connectivity that
will be present between all elements that are in the
value chain. The interaction between humans,
objects and various other system dynamics, it is
possible that the value chain can evolve to be real
time, hence, this can help to adjust for different
business aims such as to reduce cost, optimize
resource consumption and high availability.

Manufacturers, plant workers and customers will

have to understand and accept the future supply
Figure 2. Factors driving the convergence and chain to be an increasingly complex one, which
contribution to the integration and transformation will include numerous processes, machinery and
of cloud. Source: Ref. [17] components which will operate in an integrated
manner. This will require different operating
concepts to optimize and bring synergy between
2.7 Future factory concept with IoT
human and machine to increase efficiency and
reduce time-to-market. This will ensure
manufacturers to compete in a way that it will
With the development and industry revolution
reduce their operational cost and maximize
taking place production will take place much more
resource utilization.
differently. Physical beings and machines will be
more connected and will communicate with each
The global smart factory market is expected to total
other. In future factories humans will have to work
nearly USD 67 billion by 2020, increasing at a
with a complex world of processes, networks of
compound annual growth rate of 6% from 2014 to
processes, machines, sensors, robotics and devices.
2020 [16]. Communication, automation, robotics
This system will require different operating
and virtual simulation will change the product
concepts for a better human-machine relation
sector as we know it today. Vendors such as SAP
operation. In the future quick, intelligent and self-
plans to accelerate innovation in its IoT solution
adoptive manufacturing processes will be the
portfolio, increase sales and marketing, scale
measurement of success and a competitive
service, support and co-innovation, and grow its
advantage.
ecosystem of partners and start-ups in the IoT
market, which is estimated to reach €250 billion by
At present, majority of manufacturing and
2020 [17].
production facilities are configuring systems that
will make devices and machines adaptive, fully
integrated, and analytical and more efficient
operating in a manner similar to real beings. These 2.8 Industry 4.0 and the revolution
new manufacturing systems and devices will be the
new industrial revolution, called factory of the According to platform industry 4.0 the term
future. This model will be the new era of smart “Industry 4.0” stands for the, forth industry
manufacturing which will be based on fully revolution. It is also understood as a new level of
automation and which will involve an increase use organization and control over various supply chain
of technology in the manufacturing process. In the industries and their product life cycle, as it is more
future factory model the convergence of optimized towards individualized customer needs.
mechanical equipment and systems with the digital The cycles begin from the point where the idea is
era will be strong. Accumulation of data will be at generated, order generation through to the
a rapid rate and a proper analytical system will development and manufacturing of the product and
need to be set in place for processing these data. finally deliver for the end consumer. Also it
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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

ensures the recycling and all post delivery services. 3. Data Collection Process
The basis for the fourth industry revolution is to
ensure the availability of current information in real In order to better understand users existing
time by integrating and connection all parties knowledge on the subject matter few interview
involved in the value chain. In industry 4.0 it is questionnaires were formulated related with RIFD.
vital to derive the optimal value- added flow at any The data gathered was then analysed so that the
time in the process. The connection between question regarding the SAP process could be
formulated and data regarding how exiting manual
people, things and various networks of systems
operations in the ERP system. Once the direct
creates a dynamic, organized, and optimized and
interviewing was completed data was gathered for
value adding streams across all companies in the different processes in the inbound and outbound
supply chain in real time. Below figure 3 depicts operations executed in the SAP ERP environment.
the progression and the distinct pivotal stages of the Information such as average time spent on the
evolution of the industrial automation. process to complete, no of screens to iteration/
steps taken to perform the operation, Average
documents created per day and complexity was
captured. The data that was gathered at this point
was done by myself through observation on how
they perform each task. Below table summarizes
data captured during 10 observations made.

3.2 Sampling and Response Rate

A survey was conducted with a sample size of 30

SAP consultants who are experienced in both areas
technical and functional and 10 SAP users who
Figure 3. Industry revolution works in the Apparel and Footwear industries
directly involved in executing operations in the
Source: Ref. [18] SAP ERP environment. Using this sample size, a
questionnaire based data collection and 15 direct
During the first industry revolution humans used observations data on using the SAP ERP system to
mechanization, water power and steam power for execute transactions were gathered for analysis. In
manufacturing. Following the second revolution order to increase the response rate of the survey
questionnaire was printed on paper and distributed
where mass production took place there were
among the individuals while direct observation was
assembly lines in the manufacturing plants and
also self-administered. There was an 86% response
electricity was the primary requirement for the rate from in house SAP consultants and 40%
operations. In the third revolution computerize response rate from external SAP Users giving us a
automation evolved and some of the process in the total of 30 valid samples to work with.
manufacturing flow was automated with
technology. The fourth industry revolution was the
inception of cyber physical systems. The 3.3 Questionnaire Method
information and communication technology in the
production and manufacturing space in the past was In order to understand the users existing knowledge
widely adopted too, however, at present with the on RFID and to obtain a general idea about the
importance of using RFID in the retail supply chain
emergence and adaptation of sophisticated systems
following questionnaire was conducted and data
is obscuring the boundaries between the real world
was gathered accordingly. In order validate various
and the digital world which is known as the cyber- areas the questionnaire was broken down in to
physical production systems (CPPSs). several sections as mentioned in the below table 1:
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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

No Question Answer
RFID Knowledge section
1 Do you have any idea what an RFID is? Yes 30
No 0
2 From your understanding can RFID be a Yes 18
technology diver for the future of supply
No 2
chains?
Maybe 10
3 In your opinion can RFID replace Yes 24
technologies such as barcode?
No 0
Maybe 6
4 Have you implemented any SAP solutions Yes 0
for companies who use RFID for efficient
process optimization? No 30

Compelling reasons to implement RFID in a retail environment

5
Product Improve stock Improve Inventory Improve Improve Automate Real-Time
Visibility out Management Demand Inventory Processes Information
Visibility Shrinkage
23 22 22 17 25 27 30

Key Drivers for implementing RFID

6
Benefits Security External Forces Improved cost per tag

24 2 1 3

Using RFID with SAP ERP for AFS/ FMS

7 Do you have knowledge about the SAP BAPI Yes 30

technology? No 0

8 Will RFID help as a means to capture data Yes 21

and send the BAPI and automate processes?
No 0

Maybe 9
9 What would you say about the process time Low 0
improvement with RFID integration for data
Medium 8
capturing?
Significant 22

10 How long does it take to create a sales order 1Min 0

(fixing and correcting errors if any)? 2Min 0
3Min 18
5Min > 22
11 Roughly how many transactions would you 10 0
execute pertaining to IBD and OBD n a 20 0
production system a day (imaging you are a
30 0
SAP user for your organization)?
40 8
More 22
12 If you were told to create 100 sales orders Yes 0
will it have a constant time for each sales
order creation? No 30

13 Can processes in an IBD or OBD cycle be Yes 21

automated?
No 0
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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

Not Aware 9
14 In order to be more efficient in creating and Yes 30
performing transactions does experience
matter? No 0

15 How would you rate SAP transaction Low 0

complexity
Medium 18
Significant 12
16 From the following operations what would Inbound 5
you weight mostly to have RFID automate Outbound 7
various sub tasks? Both 18
None 0
17 How important do you think real time data is Low 0
to improve process efficiency?
Medium 2
Significant 28

Table 1. Questionnaire
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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

3.4 Direct Observation Method

Table 2. ERP Process 1

Process – Run 1 Average time SAP Possibility for Automation by Apparel and No of screens Average Complexity
spent on the Process automation with other means Footwear to iterate/ document
process (Sec) RFID Specific Steps created/ day

Outbound Operation Customer Purchase orders 0 - - X X - 40 0

Purchase requisitions 32 X - X X 5 2
Sales Order Creation 100 X - X X 14 2
Allocation Run 30 X - X X 6 2
Picking 25 X X X X 7 2
Packing 20 X X X X 6 2
Outbound Delivery Creation 20 X X X X 4 2
Shipment Consolidation 25 X X X X 6 2
Send ASN 10 X X X X 2 2
Post-Goods-Issue 10 X X X X 3 2
Billing 25 X X X X 9 2
296

Inbound Operation Purchase order 50 X x x X 4 25 2

Inbound delivery 20 X x x X 5 2
Goods receipt 20 X x x X 2 2
Transfer order 15 X x x X 7 2
Transfer order confirmation 10 X x x X 5 2
Incoming invoice 30 X - x X 5 2
Payment 100 X - x X 8 2
245
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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

Process - Run 2 Average time spent on the No of screens to No of errors

process (Sec) iterate/ Steps occurred

Outbound Operation Customer Purchase orders 0 - -

Purchase requisitions 40 5 6
Sales Order Creation 131 14 10
Allocation Run 35 6 2
Picking 30 7 3
Packing 25 6 3
Outbound Delivery Creation 21 4 2
Shipment Consolidation 30 6 2
Send ASN 15 2 0
Post-Goods-Issue 15 3 0
Billing 40 9 3
381

Inbound Operation Purchase order 60 4 5

Inbound delivery 30 5 2
Goods receipt 25 2 1
Transfer order 20 7 0
Transfer order confirmation 15 5 0
Incoming invoice 40 5 4
Payment 109 8 3
300

Table 3. ERP Process 2

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4. Results and Data Analysis

4.2 Quantitative Data Analysis

Average time taken for each process in outbound operation

Figure 4. Average Time Taken for Each Outbound Process

If we compare each outbound process in each of the efficacy however, is directly dependent on
the two direct observations done in process run 1 people how accurate information is entered to the
and process run 2 as per figure 4 we can clearly system in a timely manner. While the above was
identify that there are variations on the time taken tested for only 2 scenarios the reality is that the
to execute each process. While executing various number of transactions executed is more than this.
transactions
ions in an ERP system, it is known that From this it is evident that there is a direct impact
time is a concerning factor when there is a complex on the efficiency of executing transactions on an
supply chain to manage especially daily ERP environment. Average time taken for each
transactions needs to be entered so that data is process in inbound operation.
consistent and current throughout the enterprise,

Figure 5. Average Time Taken for Each Inbound Process

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Int. J Sup. Chain. Mgt Vol. 6
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If we compare the inbound process it shows the The firstt process however, took place in a smooth
similar type of variance on the time taken for each and less stressful scenario where users were told to
process run. The data gathered through observation ensure the data was properly inserted during the
as per the above table 2 and table 3 shows that for execution of the transaction and it was just once.
each transaction executed there is a considerable Then later the users were told there were many
time taken to complete the process. While this inbound and outputtput process to be completed for
scenario considers to be on a small organization various sales orders and purchases orders, this
where there is limited amount of inbound and however, was on a stressful scenario and the users
outbound documents created a day, however, if we were told to run each process again for the
consider a large enterprise where there are different subsequent new documents. As expected there was
companies running on the same ERP system this a significant increase in the time
me for each process
number increases drastically. In order to process run as per the above analysis. Compared to the first
such bulk transactions, the company have to run where each process was executed while
employee many resources just for data entry ensuring there was no errors in the documents
purposes, this increase the cost the company has to created however, the number of errors increased in
bare. the second observations:

Figure 6. Errors Detected for Outbound Process

This was the same for the inbound operations as become more complex the necessity to automate
well. While the no of errors increased the time the less value adding operations is vital especially
taken to finish one transaction also increased as a when industry is moving towards
ds a digital era.
result of the errors made during this phase due to
fatigue and lack of concentration. So if we look at a
scenario
nario where there is limited resources in an 4.3 Quantitative Data Analysis
organization to process many documents (with
minimum resource minimum cost) the efficiency Main drivers for the utilization of RFID
will reduce resulting in various other delays which technology
could have a significant impact on the supply chain
as a whole resulting
ting on negatively on the profits for In order to understand the mind-setset of the users
the organization. If we take a scenario where the with regards to implementing RFID for supply
enterprise employees many resource to distribute chain the following data was acquired. As per the
these operations, then it will incur more cost to the below pie chart it’s evident that most of the users
organization not only for employees’ payments but are having a fundamental knowledge on the
also for increased
sed number of users the licensing benefits of RFID.
cost to use the ERP system will also be more.
When the organization grows and when operations
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Int. J Sup. Chain. Mgt Vol. 6
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Compelling
ing Reasons to Implement RFID in a
Retail Environment

While there are many benefits that we can obtain

from an RFID enabled supply chain it was
understood that getting real-time
time information was
weighted to be more importance among rest this we
can observe in figure 8 below. In order to execute
various business transactions and to get information
Figure 7. Drivers for RFID Implementation real time will be a vital aspect in the future of
supply chains hence, most agreed that RFID to
obtain real-time
time information will be an
If we analyze figure 7 it is evident that majority of advantageous aspect and mostt compelling reason to
the users are aware of the benefits of the RFID implement RFID in a retail supply chain.
implementations. With 80% agreeing on the
benefits that a supply chain can acquire from this
technology we can understand that it is without
doubt this technology will help in numerous ways
especially in the context of an ERP system.

Figure 8. Compelling Reasons to Implement RFID in a Retail Environment

Challenges for RFID Implementation cost of implementing is the highest concern when
integrating this technology for existing and future
Implementing RFID into a supply chain will not be supply chains. Without a proper framework and
easy due to various complexities and challenges in global standards set in place implementing RFID
figure 8 we can note that among the questioned will be costly despite its benefits.
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Int. J Sup. Chain. Mgt Vol. 6
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Challenges for RFID Implementation

Cost of Implementation
Privacy Concerns
QUESTION

Security Concerns
Technical Issues
No Global Standards

0 5 10 15 20 25 30

AGREED COUNT

Figure 9. Challenges for RFID Implementation

transactions in an ERP system can be executed.
Use SAP BAPI Technology in Conjunction with This is where SAP BAPI technology will be most
RFID for Process Automation helpful so that various operations can be automated
to improve efficiency in an enterprise system to
RFID will be used as a primary technology to improve overall profitability. Figure 10 depicts that
gather information at different points in the value a majority
ity of the users agreed on the fact that BAPI
chain. However, the gathered information needs to technology can be used to automate transactions in
be identified appropriately so that different a SAP ERP environment.

Figure 10. Use SAP BAPI Technology in Conjunction with RFID for Process Automation
significant in a smaller operation however, in a
Time concerning factor in Executing Transactions large organization this number increases and then it
in an ERP Environment. While ERP systems has could cause a significant impact on the efficacy of
their benefits such as centralizing an enterprise the process and can cost in terms of money or a
operation in one system it also has concerning huge amount of backlogs to clear. Thi This was also
factors such as complexity to execute certain validated during direct observation method where
transactions specially
lly when there is 100 of SAP ERP transactions were executed pertaining to
transactions that needs to be executed. From the inbound and outbound operations. It was also
questionnaire complied if we look at question 10 in evident that when we have more transactions to
the above table 4 if we take the process of a sales execute it was understood that not all can have the
order creation process on average it takes close to samee time question 12 in table 4 clearly shows that
5mins per transactions. This is could be less there was a 100% agreement on the fact that each
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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

transaction executed can have different duration supply chain is one of the most volatile industries
however, with the help of SAP BAPI technology and with time things get even complicated specially
this can be handled and ‘n’ number of transactions when there are many retails to supply for. Process
could be executed at a higher speed. like order fulfillment and purchase order
management can be improved with the use of
ERP applications need to leverage the smart technologies such as IoT and RFID.
devices and technology so that it also can be
smarter. Current implementations of SAP ERP for Traditional ERP will have to make a major leap in
the apparel and footwear industry does not have order to cater for the future of smart devices and
this capability where RFID technology is machineries. With the increasing usage of IoT
incorporated into it. With manual entry to the ERP machinery, sensors and devices ERP should
system there are various issues such as time provide necessary interfaces to enable a strong link
consuming, prone to human errors, lead times and between these smart objects. Manufacturing flow
gaps. With the use of EDI various operations that process can be further improved with the use of
cannot be automated with RFID can be automated. such technology enabling a maximum utilization on
In order to trigger an EDI, we can use RFID tags in the floor. Using these technologies companies can
conjunction with EDI technology which presents a capture data whenever merchandise leaves or enters
more flexible and viable scenario to integrate RFID the facility and use the smart data necessary
to the system. processing can be done in order to identify what
should be executed in the next step and transfer
4.4 Proposed Improvement for ERP these data to the ERP.
System with the Use of RFID in
Conjunction with BAPI Technology While RFID is of great importance for data
capturing and communications in order to automate
While many companies are investing and moving various transactions in a SAP ERP system we need
towards a smarter digital supply chain it is vital that to utilize Business Application Programming
existing ERP users look into options of digitizing Interface technology provided by the vendor.
their supply chain as well. This will be a Below figure 9 depicts a detail framework on the
competitive advantage in the time to come as proposed solutions for better inbound and outbound
reducing lead times, processing time will be vital process automation in an ERP environment.
for fast fashion industries specially when there are
unexpected demands to cater for. Fast fashion

Figure 11. Conceptual Framework for Process automation through RFID and BAPPI

Validity of the proposed framework

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Int. J Sup. Chain. Mgt Vol. 6, No. 1, March 2017

The framework that is depicted above in figure 11 6. Conclusions

is designed in conjunction with “The IoT Reference
Model” depicted in figure 6 above where each layer The Time has come for RFID to be adopted by
is explained and how each layer communicates almost all of the supply chain manufactures and it
with one another. The IoT reference model is important that the cost of RFID tags come lower
in cost as it should be more affordable if item level
proposed by Cisco is a sold underlying framework
tagging to be ubiquitous in fashion stores. In order
and is something that can be considered for the for companies to sustain their business in the digital
context of industry 4.0 and integrating the exiting era and industry 4.0 it is vital that they restructure
three tier architecture of the ERP landscape is their IT landscape to incorporate technologies
credible for the proposed framework in order to discussed in this study as it is vital if they want to
address the question in hand. Using this technology compete with the major players in the market
providing the best of services to their customer and
only thing that needs to be taken into considerable
increase consumer shopping experience to fit the
is the network and processing delay. With a digital era.
powerful IT infrastructure, we can consider them to
be very less considerate while technology has References
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