Chapter 5: B2B Strategies

1.      Become familiar with RFID technology and its potential uses in Harley- Davidson’s supply chain using the information presented in this chapter and information you obtain through the Online Companion links, your favorite search engine, and your library. In about 400 words, evaluate the advantages and disadvantages for Harley- Davidson of replacing its bar codes and scanners technology with RFID.

HARLEY DAVIDSON—RFID Evaluation

Radio Frequency Identification Devices (RFIDs) are small chips used to track inventory through radio transmissions and are powered by radio signals similar to that of a cell phone. This technology is fairly new, but quiet advanced in comparison to bar codes. Unlike bar codes, RFIDs do not have to be visible for scanning. They can be scanned through boxes, over product materials, and from far ranges.

Using RFID technology can greatly benefit Harley Davidson. RFIDs can track inventory much faster and in real-time due to its scanning capabilities. This helps to manage inventory by making sure that items are stocked accordingly. It also improves processing time in terms of ordering needed supplies. Last, since RFIDs have read and write capabilities unlike barcodes, mistakes are less likely and maintaining accuracy is consistent.

However, RFIDs do have its flaws. Since its technology is just beginning to rise in popularity, the cost of implementing RFID in a company like Harley Davidson would be high. Harley Davidson would need to support not only their own massive inventory, but also deal with hundreds of suppliers in providing RFIDs and scanners.  There is also the issue of reliability. Since scanning capabilities rely on radio signals, just as a cellphone could lose signal, so can an RFID. Also, in terms of signals, there is always the possibility of security. Implementing a secure network could be costly.

3.      Develop and present a timetable for the adoption of RFID technology with specific recommendations on where Harley- Davidson should first implement it. For example, RFID tags could be installed in motorcycles as they leave final assembly, in various parts before they are shipped from suppliers, or in subassemblies as they are created at various Harley- Davidson manufacturing operations. Justify the time delays you propose in the adoption of RFID at each stage of the supply chain.

I recommend that Harley Davidson first implement the RFID technology with its Franklin Distribution Center in Wisconsin. This center is responsible for more than 22,000 parts and 36,000 locations. By implementing the technology with this center first, it not only familiarizes Harley Davidson’s main distribution center, but it also allows them to educate the 36,000 locations that they manage.  I would estimate the training to be completed within 1-3 years. Delays could be due to the amount of locations needing training as well as transition time needed from the familiarity of bar codes to RFIDs. During the same time, I recommend that the Harley Davidson Dealer Systems located in Ohio work with the Franklin Distribution Center for training and inventory success. With H-D Dealer Systems responsible for providing technical tools, training, and support to U.S. dealers, expanding the technology within the Harley Davidson chain would be much quicker.  After training and implementing the RFIDs within the two centers, I recommend that the RFIDs be distributed to the five Harley Davidson U.S. Operations facilities. Here, RFIDs can be placed during final assembly.  The transition to the new assembly procedure could pose delays, but I estimate that within 2 years, RFID procedures will be established making the implementation of RFIDs with Harley Davidson total from 3-5 years. 

Source: www.harley-davidson.com