Minimizing product shrinkage across the supply chain using radio frequency identification: A case study on a major Australian retailer

Nicholas Huber, Katina Michael

Research output: Chapter in Book/Report/Conference proceedingConference contribution

10 Scopus citations

Abstract

This paper identifies the contributing factors of product shrinkage and investigates the current state of anti-theft technology as part of the loss prevention strategy for a major Australian retailer. Using a case study approach a total of eleven interviews were conducted with employees of the retailer to identify factors contributing to product shrinkage and ways to overcome these through the use of radio frequency identification (RFID) technology. Known sources of product shrinkage included: warehouse discrepancies, internal and external theft, product recalls, shop return fraud, extortion, human and system error, poor stock control, poor rotation of stock misplaced product items, lost products, product spoilage and damage. Each of the retailer's stores, in the chain of approximately 700, loses about 350000 Australian dollars to product shrinkage every six months. This paper argues that RFID would act as a partial solution toward the minimization of the retailer's product shrinkage and provide greater visibility throughout the supply chain.

Original languageEnglish (US)
Title of host publicationConference Proceedings - 6th International Conference on the Management of Mobile Business, ICMB 2007
PublisherIEEE Computer Society
Pages45-52
Number of pages8
ISBN (Print)0769528031, 9780769528038
DOIs
StatePublished - 2007
Event6th International Conference on the Management of Mobile Business, ICMB 2007 - Toronto, ON, Canada
Duration: Jul 9 2007Jul 11 2007

Publication series

NameConference Proceedings - 6th International Conference on the Management of Mobile Business, ICMB 2007

Conference

Conference6th International Conference on the Management of Mobile Business, ICMB 2007
CountryCanada
CityToronto, ON
Period7/9/077/11/07

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Electrical and Electronic Engineering
  • Communication

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