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1.1 Business Problem: (Citation Ham18 /L 1033)

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1 INTRODUCTION

With the rapid growth and innovations in Information Technology and market
demand, new challenges in warehouse management has been emerged (Guiffrida et
al., 2007). Warehousing is a critical supply chain management tool[ CITATION
Ham18 \l 1033 ]. The purpose of warehouse management is to provide goods in the
right vicinity, the right time and the right amount, with minimal waste of time and
expense. Radio Frequency Identification (RFID) is a system that aims to reduce time,
price and growth customer service (Avlijaš et al., 2014). RFID technology can assist a
huge range of groups and individuals at some stage to realize full-size productivity
profits and efficiencies. Since the impact of RFID varies from industry to industry,
sector by sector (Sabbaghi and Vaidyanathan, 2008) this study is going examine the
warehouse operations of MAC consolidation centre, Sri Lanka.

1.1 Business problem


MAC engage in an undeniable cargo and coordination arrangements supplier offering
differed administrations from the ocean and airship cargo sending and solidification,
customs financier, esteem included administrations, Multi-Country Consolidations
(MCC) and transhipment, entrepot, street haulage, venture logistics, 4PL warehousing
appropriation, and etc [ CITATION dai17 \l 2057 ]. MAC uses its abundant expertise to
provide personalized approaches to any hurdles and minute requirements that may
arise [ CITATION MAC20 \l 1033 ].

Re-Export Country Import Country


Export Country
(MAC Warehouse) (UK)

FIGURE 1: BASIC WAREHOUSE PROCESS OF MAC

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MAC uses internal LIMA system in warehouse processes. LIMA system has major
issues such as long time lenghts, empty storage position not in real time, poor
accuracy of inventory, human errors and system breakdowns. Performance in
warehouse operations must be increased and error rates reduced to maintain
effectiveness of the process. Following process describe how RFID technology uses
in the warehouse process. Therefore, It is important to study the impact of RFID on
warehouse operations of MAC consolidation centre.

1.2 Research question


RFID technology promises to increase process accuracy, productivity and speed,
reduce storage, manage and distribution costs and boost sales by reducing stock-outs
(Avlijaš et al., 2014). In this context research question arise as “What is the impact of
RFID on warehouse operations efficiency of MAC?”

1.3 Research aim


Arranged on a key East-West exchange course and set near Indian Peninsular and the
main markets in Asia-Pacific and African locales, Sri Lanka has the basic locational
bit of leeway to turn into the key coordinations center in South Asia. MAC Supply
Chain Solutions (Pvt.) Ltd, as a sussidiary of MAC Holdings (MACholdings, 2020),
lounched its activities by getting this advantage.

This study aims to explore the impact of Radio Frequency Identification (RFID) on
Warehouse operations of MAC. While having this competitive advantage it is
important to improve efficiency of warehouse operations. RFID could help MAC to
reduce the process handling time, increase the accuracy by reading barcodes, proper
unloding and uploding of inventory and clear documentary process of warehouse.

1.4 Research objectives


1. To evaluate the impact of RFID technology on effectiveness of Warehouse
Operations of MAC consolidation center.

2. To access the benefits of RFID enabled warehouse management system.

3. To formulate recommendations to MAC warehouse management to increase


the process efficiency in terms of RFID technology.

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1.5 Research rational
The fundamental reason for conducting the study is the major issues and challenges
arise with the current warehose management system which cause the low productivity
and efficiency of the process. This required a advanced technological application to
address these challenges. If the company unable to take another step to reduce time
took for thefprocess, track the store space on time and lack accuracy in information
regarding inventory will make them to loss their best opportunities to grow in the
industry. To gain the competitive advantage more from the warehouse location and
current re-export leadership it is necessary to go with developed technology of RFID,
which support to minimize time consumption and human errors. Most importantly
system is visible and accurate in every activity. This gives warehouse to be efficient
and productive in their operations.

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