Monitoring on-shelf availability,out-of-stock and product freshness through RFID in the fresh food supply chain

Abstract

This paper presents the result of the RFID logistics pilot III (RLP3) project, which has dealt with the deployment of the radio frequency identification (RFID) technology and the development of an IT infrastructure for the management of the real-time data collected in a fresh food supply chain. More specifically, we report the benefits achievable in that supply chain, with a particular focus on the processes of inventory management at the retail store (both in the backroom and in the store area), shelf replenishment from the backroom and store area activities. The supply chain considered during the RLP3 consists of two distribution centres and three retail stores; the project targeted 145 fresh food items, belonging to the dairy and cold cuts categories.

The real-time management of data relating to product history, through a specific dashboard, emerged as a promising tool to improve significantly some specific inefficiencies of the retail store, such as product traceability, amount of sales and démarque, out-of-stock occurrence, on-shelf availability and product freshness.