The value of RFID in transportation : from greater operational efficiency to collaborative transportation management

Abstract

This paper assesses the value of Radio Frequency Identification (RFID) in the transportation forecasting, planning, and execution processes for truckload (TL) and less than truckload (LTL) services. The results show that the value of RFID in transportation highly varies according to the sub-process and the player which are considered. The value in forecasting and planning is high for consignees and TL carriers, but low for shippers. For the execution process, the value is high for consignees, moderate for shippers, low for TL carriers and potentially high for LTL carriers. Fundamentally, the common value that RFID can bring to each player is labor cost reduction, obtained by automation of dock and clerical activities, and better service in tracking and reconciling, thanks to accurate and up-to-date information. The potential for dramatic improvement in transportation through RFID exists. Achieving such improvement will be possible only if information sharing rules, such as those espoused by Collaborative Transportation Management (CTM), and well formalized procedures are implemented. RFID can give to CTM invaluable "raw material", while CTM can enable the transportation players to fully take advantage of this material.