A number of factors in today's business environment have turned management focus toward supply chain management. Increased global competition, rising costs, and rapid technological change have created greater pressure on organizations who wish to remain competitive to improve efficiency and cut costs. Improving efficiency and cutting costs at all stages of supply chain management is viewed as critical to remain competitive. From the military to retailers and automobile manufacturers, organizations are achieving competitive advantage by improving efficiency and lowering costs associated with supply chain management.
Many organizations are focusing on the supply chain as a means of improving efficiency and lowering costs. Vander Vorst, Van Dijk, and Beulens (2001) argue many firms are striving for supply chain managements systems that exhibit "leagility," the "combination of agility and leanness" (p. 2). Many firms have streamlined and automated outbound operations. However, inbound operations have not experienced such improvements. As Gonzales (2002) explains, "Companies are turning their attention to their inbound shipments and realizing that plenty of money is being left on the table" (p. 1).
Inbound logistics is an important part of the supply chain for the organization. This is true in terms of capacity for reducing costs and improving efficiency, as well as for the ability to increase tracking and shipping data in ways that help provide economies-of-scale and lead to competitive advantage. Automakers, Best Buy, Wickes, and Wal-Mart are but a few firms using inbound logistics management technologies to streamline operation and processing in order to reduce costs and increase efficiencies. Wal-Mart and other firms have adopted Radio Frequency Identifications (RFID) tags on all products, while requiring all 22,000 of its suppliers to be "RFID compliant" (All, 2004, p. 43). RFID tags are a new...