The use of RFID and web 2.0 technologies to improve inventory management in South African enterprises

Abstract

Cost-effective inventory management includes balancing the cost of inventory with its profit. Most business owners fail to recognize the value of the cost of carrying inventory, which include not only the direct cost of storage, insurance and taxes but also the cost of money tied up in inventory. Running inventory using paper-based systems, Excel files and traditional enterprise software is a costly and resource-intensive approach that may not even address the appropriate issues for most businesses. It is with this in mind that this research proposes taking advantage of the Internet of Things (IoT) and Web 2.0 tools in the management of inventory. IoT promotes the communication of things/object through sensors. On the other hand Web 2.0 tools promote the communication of people through their phones or desktop computers. The collaboration of these two technologies could improve inventory management. A comprehensive literature survey is conducted on inventory management functionalities. IoT and Web 2.0 technologies are then mapped to the identified inventory management functionalities. As a result the research proposes inventory management architecture. The paper looks at the architecture of a system that fully integrates the technical advantages of Radio Frequency Identification (RFID) and IoT, in collaboration with web 2.0 tool, Twitter, for loss prevention and as an enabler for locating misplaced stock, anti-counterfeiting of stock, etc. The system will focus on South African Enterprises as a developing country in Africa.