Returns Management for Time-sensitive Products: What is the Value of RFID and Sensor Technologies?
This contribution concerns itself with the value of RFID and sensor technologies to reverse logistics processes. Our research is motivated by the question, to what extent the accuracy of information on product quality delivered by such technologies impacts the total recovered value companies obtain from returned goods in an industry with time-sensitive products. For this purpose, we first present a case study to examine the returns management process at a manufacturer of high-tech consumer electronics. We then develop an analytical model to study the monetary benefits in a scenario with RFID-enabled product disposition. Our results first show that RFID allows for a redesign of the return process which performs more efficiently regarding total recovered value depending on technology costs (i.e. tag costs) and capabilities (i.e. sufficient sensor-delivered parameters to rightly infer the product quality). Second, our results indicate that maximum benefits can be drawn with lower accuracy but early decision on the disposition option.
Condea, Cosmin; Thiesse, Frederic G.; and Fleisch, Elgar, "Returns Management for Time-sensitive Products: What is the Value of RFID and Sensor Technologies?" (2009). AMCIS 2009 Proceedings. 634.