Stock visibility for retail using an RFID robot

Abstract

Purpose - The combination of the latest advancements in Information and Communication Technolo- gies (ICT) with the latest developments in AutoID technologies, especially Radio Frequency Identification (RFID), brings the possibility of high-resolution, item-level visibility of the entire supply chain. In the particular case of retail, visibility of both the stock count and item location in the shop oor is crucial not only for an effective management of the retail supply chain, but also for physical retail stores to compete with on-line retailers. We propose an autonomous robot that can perform stock-taking using RFID for item level identification much more accurately and efficiently than the traditional method of using human operators with RFID handheld readers. Design/methodology/approach - This work follows the design science methodology. The article highlights a required improvement for an RFID inventory robot. The design hypothesis leads to a novel algorithm. Then the cycle of development and evaluation is iterated several times. Finally, conclusions are derived and a new basis for further development is provided. Findings - An autonomous robot for stock-taking is proven feasible. By applying a proper navigation strategy, coupled to the stream of identifications, the accuracy, precision, consistency and time to complete stock-taking are significantly better than doing the same task manually. Research limitations/implications - The main limitation of this work is the unavailability of data to analyse the actual impact on the correction of Inventory Record Inaccuracy (IRI) and its subsequent implications for supply chain management. Nonetheless, it is shown that figures of actual stock-tacking procedures can be significantly improved. Originality/value - This paper discloses the potential of deploying an inventory robot in the supply chain. The robot is called to be a key source of inventory data conforming item-level, high-resolution supply chain management and omnichannel retail. Theoretical/scientific contribution - The paper shows that a fully automated inventory process with an accuracy above 99% is possible combining RFID and autonomous robot technologies. Managerial contribution - This paper shows the managers of traditional retail chains how they can obtain in a cost-effective way a high resolution visibility of the stock in the retail oor. This visibility is necessary in order to both manage the supply chain more efficiently, and to implement the omnichannel processes necessary to remain competitive with respect to on-line retailers.