Thesis: Integrating Technological Advantage into Value Chain

Sample Thesis Paper

While it has become necessary for organization to give a degree of relevance to value chain management that is quite extreme in nature, it has become just as imperative for them to exercise technology to add further value to their value chain. Recently, organizations such as “Federal Express, Dell, Proctor and Gamble, the US….

Department of Defence and the European retailer Metro Group have begun to use RFID technology in their supply chain systems”. The use of RFID technology allows them to identify where each part of the final product stands in the value chain at any given time. Radio Frequency Identification Technology, or RFID technology as it is otherwise known as, is the modern day form of the bar code. The difference is that while the bar code was developed to assist the last member of the value chain in its interaction with the consumer, RFID technology assists the members of the value chain in coordinating with each other. RFID tags are placed on every component of the end product when they are nearing the assembly stage. It enables the assembler to engage in item-level identification of product parts. The essence of the use of RFID technology is to ensure that when a new part comes in from a supplier to whom the production of the part had been outsourced, its entry into the internal value chain is seamless.

Since RFID technology tags can be read from a distance and do not necessarily have to fall within the line of sight, Dell’s personnel dealing with the inflow of parts can ensure that the incoming shipments are rapidly sorted and sent to their respective assembly lines without spending any time in cataloguing them or recording other details. RFID technology may appear to be nothing more than a passive component of Dell’s value chain management strategy but is one that has an organization wide scope in application and therefore it would be incoherent for the research if it was not given relevance.

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