Use of RFID at Nike

A study of Nike's RFID technology benefit analysis

Master thesis (2021)

Authors

S.D. Walaskar Technology, Policy and Management

Contributors

M.W. Ludema Transport and Logistics - TPM (mentor)
U. Pesch (graduation committee member)
Lorant Tavasszy (graduation committee member)
Eric Lagrand (mentor)
Ken Brauckmiller (graduation committee member)
Faculty
Technology, Policy and Management, Technology, Policy and Management
Copyright: © 2021 Sukanya Walaskar
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Published Date

05-02-2021

Language

English

Reuse Rights

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Faculty

Technology, Policy and Management

Abstract

This report presents an analysis of a new technology integration, namely Radio Frequency Identification technology (RFID) within Nike’s supply chain processes. This analysis considers a metrics relevant to operational efficiency in terms of costs savings, reduction in labour hours and increase in revenue through sales. These metrics are benchmarked using cross sectoral data from other retail stores such as Macy and analytics obtained from Accenture. Once identified, similar parameters are estimated for Nike internal operations building on the company’s own pilot test run data. The mathematical calculation showed that using RFID technology will reduce the labour costs associated to inventory counting by 75\% and the sales generated through revenue will increase by almost 4\%. The increase in sales is compared using three different strategies. According to the research, for the complete integration of RFID technology at Nike, it might take three or more/fewer years. But this research empirically provides three different penetration strategies showing that Nike will benefit with the use of RFID technology.