Potential Effects of Real-time Location System Implementation on Supplier’s Delivery Service

Abstract

Real-time Location Systems (RTLS) have increasingly gained traction in the manufacturing and logistics sectors and are being evaluated for potential benefits that can be derived from them. This study examines how RTLS have been incorporated in supplier processes, and how tracking material movements in real time has affected their delivery service performance. The aim of the study is to gain further understanding of how the implementation of a Real-time Location System can affect delivery service performance. In addition, the advantages and benefits as well as disadvantages and drawbacks from the adoption of a location tracking system are evaluated. The research question that the study seeks to answer is “How can a Real-time Location System be used to improve delivery service?”. The main theory referenced in the study is the Delivery Service Framework of Nils G. Storhagen. This study employs the qualitative research method, and respondents from 3 separate manufacturing supplier companies were interviewed to yield the data on which the research is based. Thematic analysis was used to analyse the data, which concluded that there were only indirect effects on the elements of delivery service elements as a result RTLS implementation. The study found that the system indirectly had positive effects on delivery time as a result of reducing the production lead times for products due to reduced search times. It also found instances where the information flow between supplier and customer was improved, and potential for improving flexibility and customization of customer orders though the use of the system.