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Potential analysis of track-and-trace systems in the outbound logistics of a Swedish retailer
MASTER-DEGREE
THESIS WITHIN: Major
NUMBER OF CREDITS: PROGRAMME OF STUDY: International Logistics
& Supply Chain Management AUTHOR: Daniel Goll & Nils-Ole Bolte JÖNKÖPING May 2020
Master thesis
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Master Thesis in Business Administration
Title: Potential analysis of track-and-trace systems in the outbound logistics of a
Swedish retailer
Authors: Daniel Christopher Goll and Nils-Ole Bolte
Tutor: Susanne Hertz
Date: 2020-05-18
Key terms: Outbound logistics, Track-and-trace technologies, Swedish retailer, Process
optimization
Abstract
Supply chain visibility has become a crucial factor for companies in times of globalization
and customer satisfaction. Track-and-trace technologies are important tools in order to enhance
supply chain visibility. This thesis was written in cooperation with a Swedish retailer and
evaluates potential track-and-trace technologies in order to develop a solution to close their
current track-and-trace gap in their outbound logistics. Currently the handover point between
the retailer and the postal service provider is not clearly defined, so that shipments get lost
during the transition. Therefore, a literature review about currently used track-and-trace
technologies was carried out. Several technologies with a wide price and applicability range are
currently used and have been analysed regarding their strength and weaknesses. A qualitative
study in form of interviews was conducted within the Swedish market about how this gap could
possibly be closed. Empirical findings show that the existing track-and-trace technologies do
not provide a best practice solution. Especially in the field of outbound logistics, several factors
and the individual process requirements of a company have to be considered in order to develop
an efficient solution, so that the existing track-and-trace gap can be closed. Each company has
its unique set of challenges, which have to be solved in order to successfully implement a long-
lasting tracking solution. A high dependence from the postal service provider is additionally
given since all process steps need to be aligned to guarantee reliability of the data afterwards.
In the case of the Swedish retailer, an automatized scanning bow with a separated area for
outbound parcels is expected to improve transparency of the handover and lower the total
amount of lost shipments. The breakeven point would be reached within the next years, so that
operational saving could soon be achieved. Due to the global outbreak of COVID-19, as well
as significant problems of the retailer, the practical application could not be tested. It should
therefore be part of further academic studies.
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Table of contents
1. Introduction ................................................................................................. 1
1.2 Background ..................................................................................................................... 1 1.2 Problem discussion .......................................................................................................... 2 1.3 Purpose and research question ...................................................................................... 4
1.4 Scope & Delimitations .................................................................................................... 5 1.5 Outline .............................................................................................................................. 6
2. Literature Review ....................................................................................... 8
2.1 Definition of track-and-trace in logistics ...................................................................... 8
2.2 Technical foundations of track-and-trace systems in logistics ................................... 9 2.3 Basics of position determination .................................................................................. 10 2.4 Auto-ID systems in logistics ......................................................................................... 11 2.5 Outdoor positioning technologies in logistics ............................................................. 12
2.5.1 GPS ........................................................................................................................... 12 2.5.2 GSM .......................................................................................................................... 14
2.6 Indoor positioning technologies in logistics ................................................................ 16 2.6.1 Barcode ..................................................................................................................... 16 2.6.2 RFID ......................................................................................................................... 19
2.6.3 W-LAN ..................................................................................................................... 20 2.6.4 Ultra-Wide Band ....................................................................................................... 22 2.6.5 Bluetooth Low Energy .............................................................................................. 23
2.7 Implementation factors of outbound tracking technologies ..................................... 24
2.8 Empirical model of business process modelling ......................................................... 26 2.9 Basic architecture of tracking networks ..................................................................... 27 2.10 Summary ...................................................................................................................... 28
3. Research methodology .............................................................................. 30
3.1 Structure of Research ................................................................................................... 30 3.2 Research philosophy ..................................................................................................... 30 3.3 Nature of research ......................................................................................................... 31 3.4 Research approach ........................................................................................................ 32
3.5 Research design ............................................................................................................. 33 3.6 Time horizon .................................................................................................................. 33 3.7 Case selection & sampling ............................................................................................ 34 3.8 Data collection ............................................................................................................... 36
3.8.1 Secondary data collection ......................................................................................... 36 3.8.2 Primary data collection ............................................................................................. 36
3.9 Impact of COVID-19 .................................................................................................... 37 3.10 Data analysis ................................................................................................................ 37
3.11 Research quality .......................................................................................................... 38
4. Empirical findings .................................................................................... 40
4.1 Empirical model of business process modelling ......................................................... 40 4.2 Introduction to Intersport ............................................................................................ 40
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4.3 Current track-and-trace processes of Intersport ....................................................... 41
4.4 Outbound processes of Intersport ............................................................................... 42 4.5 PostNord – The linking logistical service provider .................................................... 43 4.6 Outbound processes of various retailer ...................................................................... 43 4.7 Summary of outbound logistical processes ................................................................. 46
5. Analysis ...................................................................................................... 49
5.1 Evaluation of the examined track-and-trace technologies ........................................ 49 5.2 Potential solutions for Intersport ................................................................................ 53 5.3 Implementation recommendation for Intersport ....................................................... 58
5.4 Proposed solution for analyzed cases .......................................................................... 61
6. Conclusion ................................................................................................. 63
7. Discussion .................................................................................................. 66
7.1 Implications ............................................................................................................... 66
7.1.1 Theoretical implications ........................................................................................... 66 7.1.2 Practical implications ............................................................................................... 66
7.2 Limitations and future research gaps ......................................................................... 67
8. References .................................................................................................. 69
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Figures
Figure 1: Basic Architecture of Tracking Network ................................................................27
Figure 2: BPM of current outbound logistics process ............................................................42
Figure 3: Modelled solution with scanning bow ......................................................................53
Figure 4: BPM of the outbound logistics with a scanning bow ............................................57
Tables
Table 1: Summary of track-and-trace technologies ...............................................................29
Table 2: Information about interview partners .......................................................................35
Table 3: Summary of analysed cases ..........................................................................................48
Table 4: Cost calculation of proposed solutions ......................................................................55
Appendix
Appendix 1: GDPR Thesis Study Consent Form .............................................................. 77
Appendix 2: Coding process example ................................................................................. 80
Appendix 3: Interview questionnaire with Swedish retailer ............................................ 81
Appendix 4: Interview questionnaire with logistics service provider PostNord ............. 83
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1. Introduction
______________________________________________________________________
The first chapter presents the background of the thesis, providing a general
understanding of the topic of tracking and tracing the supply chain context. Following,
the underlying problem is brought up leading up to the purpose and the research
questions of the thesis. Lastly, the scope and delimitations are discussed.
______________________________________________________________________
1.2 Background
In times of globalization, companies are increasingly required to become more flexible
and agile in order to be able to meet the increasing adaptation needs and fluctuations in
demand of customers (Klein & Thomas, 2009). Moreover, outsourcing has become
another trend which requires the involvement of more entities in the supply chain. Lastly,
product life cycles become shorter, which results in a lack of historical data and reducing
organizations forecasting ability. Therefore, the topic of supply chain transparency for
companies has become increasingly important in recent years. Supply chain transparency
is the ability to track a wide variety of goods during transport in order to obtain a clear
overview of the inventory and activities of the individual process steps. It enables
companies to improve their customer service and cost control by managing inventory in
motion, proactively updating status, limiting disruptions and mitigating risk (Gnimpieba,
Nait-Sidi-Moh., Durand & Fortin, 2015). This allows companies to make their supply
chain more agile and transparent to meet the demands that arise (Yao, Wu, Wang & Soc,
2009). Companies increasingly face problems with efficiently tracking and tracing their
products within their logistics supply networks. This can lead to coordination problems
throughout the supply chain and customer dissatisfaction. Increasing supply chain
transparency through appropriate systems enables the identification of the location of the
shipment so that the customer is able to trace the delivery process. Without suitable
systems, companies face enormous challenges as it is almost impossible to ensure the
required supply chain transparency (Baresi, Meroni & Plebani, 2016). Keeping track of
all aspects of the supply chain is a challenge, especially as it can be difficult to control.
The lack of anticipatory demand visibility leads to increased inventory levels at various
points in the supply chain (Sun, 2017). In addition, lack of supply chain visibility can
prevent companies from filtering relevant data in their supply chain. Thus, they cannot
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make intelligent business decisions, anticipate potential challenges, and respond in a less
random manner, as well as create unity throughout the supply chain and improve
collaboration to deliver products in time (Baresi et al., 2016). Increased supply chain
visibility, however, can lead to an improved workflow and increased profits. It enables
companies to lower costs for customers and reduce risks (Do, Anke & Hackenbroich
2006). One of the key benefits is increased agility and flexibility. Increased visibility
allows companies to focus on managing a supply chain and to make the appropriate
changes to increase productivity regardless of circumstances. Increased agility also
results in increased speed. Real-time, data-driven decisions enable business decisions to
be made faster and risks to be minimized. This also enables the company to optimally
meet increasing customer needs and to shift and adapt supply chains accordingly
(Shamsuzzoha, Ehrs, Addo-Tenkorang, Nguyen & Helo, 2013). There are several ways
to increase supply chain transparency. Research has shown that tracking and tracing has
become one of the most important key technologies to meet customer needs and manage
logistics networks efficiently (Lin & Zheng, 2013). According to Jagwani & Kumar,
(2018), the most important technology investments, that should be made in the logistics
industry over the next five years are Big Data and predictive analytics. Track-and-trace
technologies are important enablers to generate big data and to effectively predict and
analyse data in the supply chain. Without an adequate and suitable tracking system,
efficient coordination of the logistical processes within a supply chain would be difficult
to achieve. By implementing this system, it is possible to identify all uneven situations in
the supply chain and make intelligent business decisions based on real-time data (Klein
et al., 2009). In addition, tracking and tracing systems can be used to meet increasing
customer demands regarding delivery status and position tracking of the respective
shipments (Jagwani & Kumar, 2018). Therefore, it can be concluded that tracking and
tracing systems offer a wide range of capabilities and functions to meet the growing
demand for supply chain visibility (Klein et al., 2009).
1.2 Problem discussion
As described shortly in the introduction, the core of the problem is based on the handover
points of the goods in the supply chain. Due to the lack of communication abilities
between different systems, goods can get lost at points of transition once they are already
passed on by one system but not registered within the system of the subsequent handling
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partner. This leads to a permanent break regarding the visibility of each product along the
supply chain. In addition, the cost side must be considered, because tracking gaps and
parcel losses lead to unnecessary costs such as re-scanning, value replacement and
handling costs. Sometimes companies try to overcome these issues by implementing
additional systems, which should fill the gap and bring clarity at the handover points.
When analysing the supply chain, it becomes evident that this might be beneficial for a
single entity, but looking at the coordination between all entities, these steps are
inefficiencies and should be limited (Gnimpieba et al., 2015). Specifically, the field of
outbound logistics is prone to the mentioned coordination problems because it is the
interface between the internal and external environment. Usually an external logistics
service provider takes over the shipments and a clear handover point in terms of data
transfer between the entities is necessary. Unclear data transfer and handover points can
lead to track-and-trace gaps and lack of the overall supply chain visibility. Thus, one of
the central challenges is the lack of the possibility to exchange information and data. If
that is not given, the problem arises that companies cannot visualize their global systems
in real time and provide the required information at any time. In addition, companies can
lose control over the inbound delivery network due to the lack of visibility (Sun,
2017). Therefore, the challenge is to create a tracking system that is beneficial for both
parties. It is important that both sides accept the system as the reference in order to prevent
conflicts about the meaningfulness of the collected data. If one side puts the accuracy of
the system or the collecting procedure in doubt, the data stored is no longer applicable for
argumentative purposes between two parties. A clear proof of handover cannot be longer
achieved (Zhou & Benton, 2007).
To implement such a system, trust between the involved parties must be developed. The
sharing of data is a crucial step as this allows the handling partners within the supply
chain a more detailed view into processes. However, it ultimately leads to an improved
overall performance of the supply chain. It also manifests the cooperation between the
involved companies, since substituting an involved company requires time and effort in
order to replace them with a relatable company. It also contains the investment of
financial resources of the parties to develop such an aligned system, which further
emphasizes the commitment of the companies to the individual supply chain and its future
well-being (Kocoglu, Imamoglu, Ince & Keskin, 2011). Consequently, the problem is a
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multicomplex issue with several factors that must be regarded when implementing a
track-and-trace technology. If implemented correctly, it decreases duplication of work,
handling costs and increases transparency and safety for the goods at the point of
transition. It also enables a better ad-hoc planning once sudden problems occur. All these
benefits require the willingness of all related parties to cooperate. These issues lead to the
focus of this study, which is put on a specific retailing company in the Swedish market
regarding their outbound logistics processes. They are affected by the previously
mentioned problems and require an in-depth research in order to develop a custom-made
solution.
1.3 Purpose and research question
The individuality of the requirements within a company as well as in the respective supply
chain shows that track-and-trace systems cannot be implemented in a generalized way.
The literature to date has focused largely on possible track-and-trace systems specifically
for indoor and outdoor localisation. The field of outbound logistics is rarely considered,
specifically in this context. Given the gap identified in the literature, research with
specific emphasis on track-and-trace technologies in the outbound logistics is rarely
conducted. Furthermore, this study aims to solve current track-and-trace challenges of a
Swedish retailer. Hence, the general purpose of this thesis is as follows:
“To evaluate the most important track-and-trace technologies in the field of
outbound logistics and how they can effectively be implemented into a Swedish
retailing company, in order to overcome current challenges.”
To reach the purpose, three research questions were created to close the existing research
gap. The first part of fulfilling the purpose is to examine the current trends and
technologies of track-and-trace in the field of outbound logistics. Thus, the first research
question of this thesis is:
RQ1: What are current trends and techniques for track-and-trace in the supply
chain context of outbound logistics?
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The first research question is supposed to be answered within an extensive study of the
existing literature. Given the required informational background about track-and-trace
technologies, it is important to examine which factors and parameters have to be
considered when implementing a track-and-trace solution. Thus, the second research
question of this thesis is:
RQ2: Which factors have to be considered when implementing track-and-trace
technologies in the outbound logistics of Swedish retailer?
Given this informational background it has to be evaluated how these technologies can
be implemented into the individual context of the outbound logistics of a Swedish
retailing company. Thus, the third research question of this thesis is:
RQ3: How can track-and-trace technologies be effectively implemented into the
outbound logistics of a Swedish retailer in order to overcome individual
challenges?
To answer the second and third research question and to fulfil the purpose, interviews
with representatives of Swedish retailing companies will be conducted. The respective
outcome will be reflected on a specific case of a Swedish sporting goods retailer, in order
to develop a custom-made solution. Furthermore, the gathered data will be used to
develop solution recommendations for each interview partner. It therefore shows the
individuality and complexity of implementing a track-and-trace system within the
outbound logistics of a cross functional operating company.
1.4 Scope & Delimitations
The scope of this Master thesis represents the possibilities of track-and-trace in the
outbound logistic in general, and further practically applied to a Swedish retailer.
Therefore, all commonly used tracking methods of the industry will be looked at and
evaluated regarding their performance. The researchers are going to analyse the
possibilities of each method and compare it to what is requested in its usability. This study
only focuses on retailing companies in the Swedish market, because this thesis is written
in cooperation with Intersport Sweden. Due to the specific track-and-trace problem in
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relation to the logistics service provider, only other retailing companies who also use the
same logistics service provider can be regarded. This study aims to investigate the
processes of different Swedish retailing companies in order to understand their track-and-
trace challenges and to apply their experiences to the main case example of this thesis.
Companies from other countries can be excluded due to the unique processes and possible
different hardware. In the practical example, the researchers are generating a custom-
made solution for the Swedish retailer, where some aspects might be expandable to
related companies. For some requirements, a less accurate but inexpensive and easy-to-
install solution might be applicable. For other products, an accurate and worldwide real-
time tracking might be the requirement. This said, the Master thesis hopes to untangle the
currently available product portfolio and to give insights about the technologies available.
It therefore is an analysis about the current technologies as well as an advisory how track-
and-trace could help to overcome individual challenges of each regarded Swedish
retailing company. It should also raise awareness about what kind of benefits a
successfully implemented track-and-trace system can have for a company. Overall, the
researchers are looking at the system from an usability and not from an IT
perspective. Thus, this thesis comes along with certain delimitations. First, the thesis has
a business background and is looking into IT details of the implementation only briefly.
The business focus mainly considers a potential cost analysis for the main case example
to effectively implement track-and-trace technologies in their outbound logistics.
Furthermore, this study focuses more on the outbound logistics processes and less on the
technical IT specifications for implementing track-and-trace systems. This thesis only
investigates track-and-trace of outbound logistic and not the possibilities of track-and-
trace in general. Additionally, the researchers only look at it as a business tool and do not
take other applications of the technique into account. For example, track-and-trace is
widely used in the observation of the behaviour of wild animals, as their movements can
be tracked. The example of one specific Swedish retailer is looked at in detail, whereas
the reality can be different for other companies. Lastly, the overall impact of COVID-19
must be acknowledged since it effected the overall conduction of the study negatively.
1.5 Outline
Within this section, an overview about the structure of the thesis is provided.
The introduction gives a first overview about the background of the studied topics and
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what challenges are present. The problem discussion follows respectively, which ends up
with the purpose as well as the research questions of this thesis. Next, the scope as well
as the delimitations of the thesis are presented. The second chapter covers the research
methodology, where philosophy, approach as well as the strategy are going to be
introduced. It also provides insights about how the data was collected, analysed and how
the research quality was ensured. Chapter three looks at how track-and-trace is viewed
within the academic literature. Therefore, a literature review about the possibilities of a
variety of methods is presented. Empirical findings as well as the practical
application for this business case example are provided in chapter four and five. The aim
with the example is to show how a practical implementation could be conducted and what
points are important to be considered. Chapter six completes the paper with a conclusion
and a presentation of the managerial implications. It also provides further limitations as
well as gaps which can be part of future research.
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2. Literature Review
______________________________________________________________________
This chapter provides an overview of the literature in the research area of track-and-
trace technologies in outbound logistics. Thus, a more comprehensive although general
understanding of the topic of this thesis is given, so that it acts as a foundation for the
empirical study.
______________________________________________________________________
2.1 Definition of track-and-trace in logistics
Track-and-trace refers to IT-supported systems for determining the processing or delivery
status of an object within a physical supply chain of a production or logistics company
(Hassan, Ali, Aktas & Alkayid, 2015). According to Oliveira, Noguez, Costa, Barbosa
and Prado (2013), the core task of a track-and-trace system is to create end-to-end
transparency within a logistics chain so that customers, business partners and the logistics
company itself can see the exact production or delivery status at any time. With reference
to Shamsuzzoha et al. (2013), a track-and-trace system is essential for managing
integrated logistics networks and improving customer services. In the literature, different
authors define real-time tracking and tracing in different ways. According to Baresi et al.
(2016), traceability has two characteristics: first, the attribute that makes it possible to
determine the current location of a shipment, and second the registration and tracking of
parts, processes and materials used in production by product identification numbers. Lin
et al. (2013) define traceability as the ability to trace the whole supply chain processes
backwards after delivering the materials and products. Furthermore, the wordings product
tracking and product tracing have to be distinguished. According to Shamsuzzoha et al.
(2013) product tracking refers to the location of a product due to its value and risk of loss.
On the other hand, product tracing refers to the product and transportation history to
identify the source of a quality issues. Furthermore, Främling and Nyman (2009) divide
track-and-tracing into a forward and a backward part. Forward tracking is defined as the
determination of the location of products along the supply chain process, whereas
backward tracing refers to the identification of defective or lost articles in the logistics
network. A track-and-trace system is not only limited to the level of manufacturers, but
also to the entire supply chain networks. Supply chain networks can be seen as an
integrative approach to coordinate the handling and control of materials and goods from
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the origin to the end consumer (Baresi et al., 2016). For Shamsuzzoha et al. (2013) proper
track-and-trace of all the necessary information from the supply networks is necessary for
efficient and effective management. Thus, the respective supply chain partners have to
collaborate closely together and define the track-and-trace requirements to enable a
supply chain visibility. Klein et al. (2009) divide the respective stakeholders into two
groups: suppliers and industrial/end customers. On the one hand, supplier and industrial
customers require track-and-trace approaches from a business-to-business perspective.
On the other hand, end-customers place track-and-trace requirements from a business-to-
customer perspective, where e.g. the involved parties differ significantly
2.2 Technical foundations of track-and-trace systems in logistics
Track-and-trace systems can be implemented via terrestrial systems and satellite-based
systems. Terrestrial systems are all systems that are based and implemented on earth,
whereas satellite-based systems require corresponding hardware in space (Pavkovic,
Berbakov, Ulianov & Hyde, 2016). According to Klein et al. (2009) the tracking of
shipments is usually carried out via terrestrial systems. For this purpose, shipments (e.g.
packages) are provided with machine-readable labels. Based on the order data, the
destination or delivery date can be assigned to a shipment. Automatic sorting stations can
read these labels and thus guide the shipment to its destination. Each time a scanner
hardware reads a label or transponder, the information is sent to a central database. The
data of the central database is prepared according to the requirements and made available
to the respective interest groups via internet portal, ERP system or e-mail (Kothris, Beach,
Allen & Karlsson, 2001). For the tracking of larger loading units, which also cover longer
distances (e.g. trucks), mainly satellite-based systems such as GPS are used. A connection
to the company headquarters is established via the mobile phone network and thus the
exact position of a loading unit is displayed (Kothris et al., 2001). According
to Deslandes, Tronc and Luc-Beylot (2010), the fundamental difference between
terrestrial and satellite-based systems is the number of status messages for determining
the position of objects. Terrestrial systems only issue status messages when individual
defined process steps are completed. Such systems are referred to as process step-related
or discrete track-and-trace. Discrete track-and-trace requires a line structure in which the
objects to be tracked pass through individual process steps one after the other. Along this
value-added chain, the exact location of an object can be determined for each step in the
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dispatch or production process via e.g. RFID, barcode or 2D code (Kandel, Klumpp &
Keusgen, 2011). In contrast, satellite-based systems identify objects continuously in real
time, which is known as continuous track-and-trace systems (Kothris et al., 2001).
2.3 Basics of position determination
For the determination of the position of an object, the literature offers a variety of
procedures. The variety of different systems of position determination can be derived
from the number of different system requirements for a position determination system
(Lee & Ferreira, 2002). Trilateration and triangulation are the main principles for the
determination of a position. With an increasing distance, a transmitted signal loses its
strength. A receiver realizes where each signal source is located in the area. If the receiver
can receive signals from at least three sources, the signal strength makes it possible to
determine the location of an object (Zhang, Xia, Yang, Yao & Zhao, 2010). According to
Lee, Woo, Park and Kim (2014), trilateration is a technique that uses distance
measurements to determine the respective position. This requires at least two known
reference points on a two-dimensional map. Three known reference points are required
for an accurate position determination. In addition, knowledge of the respective distances
between a reference point and the searched point is essential. Lee et al. (2002) and Lee et
al. (2014) mention that the distance can be revealed by means of a signal sent from the
reference point to the searched point. For this purpose, the difference between the
transmitting time and receiving time is determined. Afterwards, the distance is obtained
by relating this to the signal speed. The searched point is therefore located on a circle
around the reference point, which is called a standing line. The trilateration with a
reference point does not result in a unique point. To improve the determination of the
searched point, a second reference point is required. The result is two circular stand lines
that intersect at two points. Logically, the desired point is located at one of these two
intersections (Zhang et al., 2010). To determine which of the two points is the actual
location, further information must be obtained. In practice it is often possible to exclude
one of the two points. If this is not the case, a third reference point is required. The
intersection of all three reference points is the position searched for (Lee et al., 2014). The
second method for determining a position is triangulation (Lee et al., 2002). In contrast
to trilateration, the angles are additionally used to calculate the position of an object. For
a two-dimensional position determination, a length and two angles are required. The angle
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is defined as the angle crosses the receiver. The delay of the signal indicates the angle and
is called the "Time of Flight”. The “Time of flight” measures the time between the
transmission of a signal between the reference point and an object (Zhang et al., 2010).
According to Lee et al. (2014) this can be determined using special antennas with precise
directivity. A distance measurement is not required for triangulation. As a result, straight
lines rather than circles are generated here as standing lines. Thus, the determination point
is at the intersection of the two standing lines.
2.4 Auto-ID systems in logistics
In order to gain a profound understanding about track and trace technologies, it is
important to examine how they are currently embedded in the logistics and supply chain
context. Auto-ID systems are considered as a subsystem of logistics systems. A logistics
system is defined as the efficient transfer of cargoes or persons accompanied by the flow
of information (Shamsuzzoha et al., 2013). A main characteristic is that the state of a
cargo can be defined at any process time by an ordered pair of numbers. This requires an
efficient system of transmitting information about the products or materials (Zajac, 2015).
According to Shamsuzzoha et al. (2013), Auto-ID technologies enable the track-and-trace
of the location of products in the supply chain. Lin et al. (2013) mention that in the supply
chain, products or materials typically must travel within and across companies. Auto-
ID technologies can be used to track and control the flow of the products between
locations like warehouses, manufacturing and assembling lines. In an Auto-ID network,
data about the same product are often generated at several nodes within the supply chain.
To achieve full traceability of the product history these nodes must be connected and
integrated by an overall system (Sun, 2017). According to Oliveira et al. (2013) and Do
et al. (2006), this data integration is essentially influenced by several aspects. The Auto-
ID system must be flexible in terms of constituting a dynamic environment, in which new
nodes can be added to capture all product information. Do et al. (2006) refer to scalability
because an Auto-ID node typically collects and manages a large amount of event data,
which is further growing over time. Hence, the Auto-ID system must deliver
corresponding optimization and analysis mechanisms in order to provide the required
information at any time. Lastly, the authors mention security. Product information are
often collected among others at the time of manufacturing, which can include sensitive
detailed information for other companies. Therefore, it is necessary to address the inter-
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and intra-company needs for data by providing corresponding views. According to Zajac
(2015), Auto-ID systems are commonly used to address several issues in the supply chain
context. The increasing widespread use of electronic data interchange and common
databases which contribute to collaboration between clients and suppliers require
interconnected systems and information exchange. Furthermore, Baresi et al. (2016)
mention that companies are facing increasingly difficulties by providing the required
information up the supply chain, due to growing production rates and customer
requirements. Auto-ID systems enable companies to solve these problems by capturing
information in real-time and connecting the databases (Zajac, 2015). Moreover,
companies are facing increasing personnel costs due to growing requirements of added
services within the supply chain. With a respective Auto-ID system processes can
be optimized, and the impact of human mistakes and errors minimized (Gnimpieba et al.,
2015). Hence, the integration of Auto-ID systems in the supply chain context can help
companies to overcome the increasing challenges of supply chain visibility and
information exchange through the respective channels.
2.5 Outdoor positioning technologies in logistics
To track-and-trace products and goods within logistics certain technologies exist.
Regarding the outbound logistics of companies, the researchers analyse existing academic
literature to examine which technologies are available. As already mentioned beforehand,
outbound logistics is the interface between the internal and external environment of a
company. Thus, outdoor and indoor positioning technologies that can be related to
outbound logistics have to be considered.
2.5.1 GPS
As already introduced by a variety of papers, GPS tracking is a widely accepted and used
form of outdoor tracking (Chirakkal, Myungchul & Dong Seog, 2014; Sultana, Tahsin,
Reza & Hossam-E-Haider, 2016). In most articles, the literature focusses on the outdoor
applicability and little research has been done regarding the practical application on an
indoor application. This is mostly due to limiting factors like metal and walls, where the
signal is reflected in several ways and therefore disturbs the direct sight to the satellites,
which makes an accurate tracking challenging. In one indoor experiment, Lohnert, Bar,
Gohler and Mollmer (2010) found out that one localization of a position consisted of
three reflected paths and 417 refracted paths, where a majority was refracted more than
13
once. For an accurate localization, GPS needs at least four satellites to localize the GPS
module on a map (Kandel et al., 2011). Piras and Cina (2010) discovered that the
accuracy of localization software using GPS is improving and it is starting to allow for
the determination of 3D coordinates even under difficult conditions. A median accuracy
of 4,5-8 meters could be obtained. A GPS tracking device normally consists of three
major components, in which the GPS black box is the central part of the system with
a fixed interval transmission of data to a server. The GPS antenna is responsible for a
strong receiving power to calculate the incoming signals. To power up the system, a
battery is needed with which modern GPS modules can operate at least 72h. This easy
and universal setup is important for the management of all involved parties in
the supply chain, since the signal can be integrated easily into several different data
management systems (Klumpp & Kandel, 2011). In general, there is
a differentiation between “event-monitoring” tracking, where the location is only tracked
near a reading station or is actively triggered, and continuous tracking methods, where
the location can be detected any time. GPS might be able to close this gap, since
its localization can be tracked anywhere and is not requiring a constant mobile
connection, so that it reports its location once requested. This leads to a more
transparent supply chain, which has benefits for the shipper in form of better planning
and more detailed information for the customer. This is valid for most
outdoor environments, but it lacks in its indoor tracking capabilities within a warehouse
(Kandel et al., 2011). Xu, Chen, Xu and Ji (2015) conducted several experiments and
found types of pseudolite architectures for the indoor usage. Several pseudolites are
located at corners of the building to simulate satellite constellations, which are not
reachable from indoor locations. A repeater simplifies the synchronization of the
constellation with an outdoor antenna to collect the GPS signal. This method reaches
an indoor localization with only minor modifications of commercial GPS receiver. The
articles agree that GPS is widely used due to its universal application into various systems
as well as the low costs of monitoring the shipments on a global scale. The different
authors presented ways of using GPS in an indoor environment, but it becomes clear that
without direct vision of the satellite tracking abilities of the system suffer in terms of
accuracy (Lohnert et al., 2010).
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2.5.2 GSM
Tracking via GSM is done with the help of mobile telecommunication
technology. Therefore, the area needs to be actively covered by a GSM network in order
to be able to use this tracking method. The covered area is divided into a number of cells,
where each cell is served by its own base station. Several base stations are combined and
controlled by a mobile service centre. This serves as the interface between the mobile
network and the Public switching telephone network, which is the aggregate
of different telephone networks of the world (Hussain & Kwak, 2009). GSM is the most
widely deployed cellular telephony standard in the world, present in more than 220
countries with nearly 800 mobile operators worldwide. GSM will be used at least until
2021, because 3G and 4G do not have a comprehensive coverage yet. Therefore, GSM is
still the current standard for mobile tracking (Tian, Denby, Ahriz, Roussel & Dreyfus,
2015). The fingerprinting location method can be transferred to GSM tracking, which will
be introduced in greater detail in the W-LAN section. During the offline phase, a database
of the environment is obtained. With this basis, real-time tracking can be done in the
online phase by comparing the current results with archived data (Arif, Ahsan, Hasan &
Bhattacharya, 2014). In their basic work Drane, Macnaughtan and Scott (1998) described
three different physical architectures that could be used to position GSM mobiles: mobile-
based, network-based and hybrid positioning. Mobile-based tracking is a form of self-
positioning, where the position is calculated by the trackable device itself. Network-
based positioning, also called remote positioning due to the remote calculation of the
position, uses the signal of the mobile in order to position it on the map, as the distances
to each of the sender can be measured. Hybrid positioning could be best described
by combining aspects of self- as well as the remote positioning. One example could be
the work of Shih-Hau, Jen-Chian, Hau-Ru and Tsung-Nan (2008), who compared GSM
to FM tracking. One of their findings was that a hybrid solution for areas where the GSM
connection is weak could increase the active tracking area once FM waves could be also
used additionally. This results in a variety of possible hybrid tracking methods. A major
limitation on positioning receivers is the phenomenon known as multipath, where a signal
propagating from a transmitter to a receiver may travel via several paths including the
direct, line of sight path as well reflected paths. Therefore, the recorded times can be
misleading and cause errors in time measurements (Drane et al., 1998). Varshavsky, De
Lara, Hightower, Lamarca and Otsason (2007) showed in their experiment that the
15
system could correctly identify the floor up to 60% and in the range of two floors up to
98% of the time, which show the high accuracy. In a more current work by Tian et al.
(2015), a stable tracking system could be established in a challenging environment like
railway and subway transfer stations, where multiple reflections must be
considered. Localization errors could be corrected, and the accuracy of the system was
significantly improved. Time and space constraints have been considered, so
that local oddities could be transferred to the times measured. In the early work
of Drane et al. (1998) it already became clear that an accuracy of around 100m would be
achievable. Varshavsky et al. (2006) achieved a tracking using mobile phones with a
median localization error of two to meters in an indoor environment. This also shows
that indoor localization with GSM only became possible within the last years, since GSM
macro-cell could expand their range significantly. In the example of Arif et al. (2014), an
accuracy of over 88% using a simple experiment setup with a Nokia 3315 could be
obtained. This shows that GSM tracking technology is capable of accurate tracking
results even without using highly advanced hardware. Varshavsky et al. (2007)
conducted their experiments using several mobile phones which did not significantly
affect the accuracy of the tracking, so that the technical side of it only plays a diminishing
role. Therefore, this system can be easily installed and applied to a variety of contexts,
where real time tracking could be used without the need for a huge investment. In the
experiments of Varshavsky et al. (2006), the GSM tracking results were only slightly less
accurate than W-LAN tracking, but with the benefit of having the ability to track them
everywhere within the range of mobile service and not only in predefined W-LAN
zones. It showed that room level localization using GSM traces is possible and GSM
phones could make applications like in-building navigation and in-building coordination
possible. One important hindering factor according to Varshavsky et al. (2006) is the
unwillingness of network operators to make signal strength information public. By
not publishing these interfaces, network operators can limit the provisioning of location-
based services to their own offerings. In a later work Varshavsky et al. (2007) analysed
in detail the benefits of using GSM as the tracking method. There are recently developed,
more accurate methods of indoor localisation on the market. Their drawback is that they
require custom infrastructure for every area in which the localization should be
performed. Therefore, these methods have not seen a significant development outside
high-value application. In contrast, GSM uses existing infrastructure and
16
therefore limits needed investments into infrastructure. The accuracy of the system might
be sufficient for the desired purpose, so that investments into more accurate tracking
methods would not pay off economically (Shih-Hau et al., 2008).
2.6 Indoor positioning technologies in logistics
Regarding the outbound logistics of companies, the authors will take a deeper look in the
literature to examine which technologies are available for indoor positioning and
therefore able to close the track-and-trace gap. As a basis it can be stated that track-and-
trace in the indoor context is mostly applicable to distribution centres, since goods are
handled in these facilities before they are shipped out to the end consumer. This procedure
is called indirect distribution, since the final consumer is not geographically close to the
factory in most cases, so that intermediaries are helping to deliver the final product.
Therefore, functions and roles of a distribution centre will be looked at in greater detail.
This literature review will not take the discussions among researchers about the layout as
well as the most economic feasible solution and the location into account. Instead it looks
at the functions a distribution centre can obtain, where track-and-trace methods could be
useful supporting tools. Chen (2001) simplified the role of distribution centres by
referring to them as the connection point between supplying sources and the demand
points of the end customer. Distribution centre can also act as a warehouse when goods
are stored before they are shipped out, but a warehouse cannot act as a distribution centre.
It is also the location where operation efficiency is enforced, since the processes have a
wide impact on the overall economic performance (Parikh & Meller, 2008). In many
distribution centres, items stored are picked and distributed in less-than-case-lot
quantities, which means the picking process is labour intensive as well as repetitive (Liu,
1999). They are also the place where new theories in order fulfilment are tested, which
have implications for the overall supply chain (Garcia, Seok Chang & Valverde, 2006).
Therefore, the tracking of every outbound shipment within a warehouse is a complex
operation. The following section tries to introduce a variety of technologies, which would
be suitable for taking on the task to locate objects within a warehouse and therefore
overcome the inaccuracies of the outdoor positioning technologies.
2.6.1 Barcode
First, the tracking technology of barcodes will be analysed. In general, there is an
important distinction between 1D and 2D barcodes in the literature. Vartiainen, Kallonen
17
and Ikonen (2008) describe the 1D barcodes as a mix of vertical lines and spaces, where
combinations of these two are called elements and represent different characters. The
standardized 1D barcode consists of 13 numbers and is used worldwide for the marketing
of retail goods. However, the usefulness in today’s world is limited by the small data
capacity of the barcode, since a rising number of applications require longer barcodes
to encode more relevant data. Nevertheless, barcodes are still an important factor
in today’s retail world as its universally agreed layout is applicable to almost all
commercial situations. In general, whenever a barcode is read, the status of the shipment
can be changed to the next required action. Once this is done, the ID of the person who
made the change and a time stamp are stored into a database, so that transparency is
increased and each handling step is documented (Vartiainen et al., 2008). Regarding
Kandel et al. (2011) barcode tracking is part of an event-monitoring since no notifications
are sent automatically to a receiver. Nevertheless, barcode tracking can easily be included
into active tracking methods, since with scanning the barcode, the shipment can be
connected to the transportation vehicle it is loaded into. With this twist, a single barcode
becomes part of consolidated shipments, where forms of active tracking might be
applicable (Shuyi, Zhiqiang & Yongquan 2013). Shuyi et al. (2013) talk about the new
generation of 2D barcodes (QR codes), which consist of a black and white matrix in
which information are gathered. The information can be stored in vertical as well as
horizontal directions. There are several sizes of barcodes available ranging from Micro
QR codes to 177 x 177 modules with their maximum capacity of saving up to 7,089
numerals. The size also depends on the available space of the product, so that Micro QR
codes are often seen on small electronic components. Sensitive information can be stored
into secured QR codes, where the access is limited. Also, the possibility of frame QR
codes exist, which gives companies the possibility to visually individualize their QR
code to be easily recognized. This is mostly done in advertising and does not seem to be
relevant for track-and-trace purposes (Rajesh, Waranalatha, Reddy & Supraja, 2018).
Currently, coloured QR codes with more data storing opportunities are developed, but
this technology is not ready for the universal mass application yet. In the case of Wang,
Hung-Lin, Shou and Wang (2018), several barcodes for different processing steps have
been used to track single items. Therefore, the usage of different barcodes allows
to separate the information of a shipment completely to ensure data
security. Nevertheless, the test also revealed that these barcodes should
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be easily separable so that it is clearly visible which barcode is relevant for
each processor of the shipment to keep the productivity high. Additionally, the
readability of the 2D barcode is enhanced since it can be recognized correctly even if the
barcode misses up to 50%. Vartiainen et al. (2008) conducted experiments, which
concluded that barcode identification with a regular cell phone camera is applicable to
situations where sufficient light is available. Also, the accessibility is important since a
sufficient angle between the reader and the barcode is needed to enhance the
readability. This goes in line with the conducted tests of Billo, David Porter, Mazumdar
and Brown (2003), where seven independent variables of the bar code quality were
tested. Only the x dimension (ideal width), the bar growth/reduction as well as the symbol
contrast seemed to matter in the fast readability of these codes. Once taking these factors
into account, barcodes can easily be read by a manual scanner or a fully automatic reading
machine. One major benefit of barcodes is the easy setup for a barcode system with just
a simple smartphone camera and access to the internet. Also, the creation of a unique QR
code is simple and at low cost with the help of electronic generators. As the logo
only consists of black and white, printing costs can be limited. With this setup, costs can
be decreased and a tracking system with an acceptable security level can be
implemented (Melgar & Melgar Santander, 2014). Another benefit is the universal
application of barcodes as in the example of M´hand, Boulmakoul, Badir and
Lbath (2019). In a challenging environment for localization technologies like within
ferries, where the high density of metal makes the localization with advanced tracking
technologies difficult, an easy arrangement might meet the requirements if no real-time
localization is needed. Wang et al. (2018) point out that one downside of barcodes is that
they are easily damaged as they are exposed to damages. Once the barcode is ripped or
damaged, there is no way to scan or update the status of the product. He therefore
recommends a plastic protective layer around it once it becomes obvious that the product
is at risk of being damaged. In his example he calculated that even with a 1% rate of
ripped barcodes, labelling could still be beneficial for the overall revenue
generation. Once the barcode is scanned, all relevant information can be displayed
immediately and no entries must be made in order to have access to them.
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2.6.2 RFID
Radio frequency identification technology has become one of the most adopted track-
and-trace technologies in logistics and manufacturing in the recent years. Unlike other
technologies such as barcode systems, RFID identifies objects from a distance and does
not require a direct line of sight. RFID tags include more applications than barcode
systems and can measure additional data such as product type and even environmental
factors such as acceleration, temperature and charge level (Want, 2006). Furthermore,
RFID tags that are located in the same defined space can communicate with each other
and recognize each other without manual assistance. RFID has become widely accepted
in logistics and is one of the most promising applications when it comes to high precision
tracking. (Lu, Wang, Zhao & Zhai, 2018). RFID is a wireless communication technology
with which stationary or moving objects can be identified contactless using radio waves.
The identification is contactless with the resonance or reflection principle by
electromagnetic or magnetic (inductive) coupling. Depending on the RFID frequency
(near field or far field) the coupling element consists of a dipole antenna or antenna
coil (Anandhi, Anitha & Sureshkumar, 2019). RFID tags can be divided into three
different systems - active, passive and semi-passive RFID tags (Choy & Ng, 2006; Xiao,
Yu, Wu & Ni, 2007; Heidrich, Brenk, Essel, Schwarzer, Seemann, et al. 2010). Xiao et
al. (2007) mention that passive RFID tags do not require batteries or maintenance. Passive
RFID tags are inductively coupled, powered and received by an electromagnetic field
generated by the reader. More precisely, data transmission is achieved by inductive
coupling between the coil in the reader and the tiny col in the tag. Passive RFID tags store
the energy they receive until there is enough energy for the tag to transmit data (Heidrich
et al., 2010). A clear advantage of passive tags is that they are smaller, lighter, and less
expensive than active tags. However, due to the inductive coupling they can only be read
from short distance of up to 3 meters (Xiao et al., 2007). Passive RFID tags also have an
indefinite operational life and due to their small size, they fit into a practical adhesive
label (Choy et al., 2006, Lu et al., 2018). According to Heidrich et al. (2010) active RFID
tags, unlike passive RFID tags, can send data in predefined time intervals because they
have their own power supply (battery). This enables them to communicate data at a higher
range of up to 100 meters. Anandhi et al. (2019) mention that active RFID tags are
predestined for indoor localization. Active RFID tags offer an integrated sensor
technology (position, acceleration, pressure, temperature, charge level) that enables
20
additional information transfer about the tagged object. The advantages of active RFID
tags are characterized by their easy programmability and integration. However, the costs
factor and installation effort are still downsides that must be considered. Cost
effectiveness can only be reached by purchasing large amounts (Xiao et al.,
2007). Semi passive tags have a power source which increases their working range and
throughput. The main difference between active and semi passive tags is that semi passive
tags still require a passive response from the RFID tag to the reader (Choy et al., 2006;
Kiraly, Helfenbein, Kiraly, Kovacs & Balla, 2017).
2.6.3 W-LAN
Since GPS tracking is hardly applicable to complex indoor environments, alternative
active tracking methods have to be considered which allow for real-time localization. W-
LAN localization techniques in general utilize metrics of received radio
signals. Traditional metrics are angle of arrival (where does the signal come
from), received signal strength (how strong is the received signal), time of arrival and
time difference of arrival. Time of arrival uses the absolute time it takes until
the synchronous signal is received, whereas the time difference of arrival approach uses
the time difference between sending and receiving the signal as the basis (Heidari &
Pahlavan, 2008). Another important tracking technology for W-LAN is the discussed
trilateration method. The distance from several W-LAN access points to the trackable
device is measured (Torteeka, Xiu & Yang, 2014). The accuracy is improved with more
access points in direct line-of-sight to which the trackable device can build up a
connection. More access points are equivalent to more data about the physical distance to
different routers which can be measured (Torteeka et al., 2014). Xiang, Song, Chen,
Wang and Huang et al. (2004) on the other hand found out that after more than 100
measurements, the accuracy of their tracking system was not remarkably improved with
further entries during the setup phase. This indicates that there is a threshold of how much
data should be processed. The downside is that the accuracy of the method is easily
affected by noise and the impact of closely located electronic devices, which is
counterproductive for a tracking method in the context of a warehouse. The experiments
were conducted in a direct line-of-sight to the receiver, which would be additionally
challenging for this tracking method once this parameter of the test setup would be
changed to the reality of a warehouse (Khan, Kai & Gul, 2017). Regarding Han and He
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(2018) most of the current used indoor positioning methods are based on the received
signal strength fingerprint recognition algorithm and are therefore called fingerprinting
localization. This algorithm creates a database of the designated location area signal
strength and compares it to the real-time collected signal strength. With this method, an
accurate location estimation can be achieved. It does not require line-of-sight
measurement to the sending nodes, which is beneficial in complex environments, where
the line-of-sight can be easily blocked. In general, the system works well with unchanged
environments, where influencing factors stay constant over a period of time. This
technique consists of two phases. During the offline phase, a database or radio map of
reference points is created, which serves as the basis for future localizations. During the
online phase, the location would be obtained by using pattern-matching algorithms, which
compare real time signal strengths with those recorded during the offline phase (Chirakkal
et al., 2014). The overall fingerprint location technology is further divided into two
categories. The first type would be the positioning method using an average of the signal
strength for each access point, so that the user location can be estimated using a reasoning
algorithm. The second type is a probability-based localization method, where conditional
probability is used in order to estimate the user´s position (Han et al., 2018). Advanced
forms of fingerprinting localization methods use context-aware information, such as a site
plan, to reduce the special density of required wireless access points (D´Souza, Schoots
& Ros, 2016). In some conducted experiments by Izquierdo, Ciurana, Barcelo, Paradells
and Zola (2006), the time-of-arrival data was used to estimate a position. Time-of-arrival
is part of the round-trip measurement and therefore a set of estimations with zero distance
had to be obtained. An average measurement error of 0.64m regarding all cases could be
achieved, when factors about the area have been considered. Therefore, W-LAN tracking
is never an off-the-shelf solution but an individualized product. In the harder-to-locate
environment of Jathe, Lutjen and Freitag (2019), an average location accuracy of 2,33m
with the best possible algorithm combination could be achieved. The results of Xiang et
al. (2004) are going into the same direction, which proofs that the development of an
adjusted algorithm can significantly improve the results of the tracking system. Since the
tracking accuracy was within 4m in 95% of all cases, this method of tracking is applicable
for the practical commercial use if this range is enough for the purpose of the business
(Xiang et al., 2004). In related papers, localization is done with the help of a grid, where
vectors are pointing towards the place where the requested position can be localized. This
22
form of tracking is mostly useful in undistracted environments, where less distractions
are taking place and therefore less suitable for track-and-trace in the context of logistic
(Smallbon, Potie, D`Souza, Postula & Ros, 2015). Torteeka et al. (2014) conducted an
experiment, where they combined the W-LAN trilateration technique with the fingerprint
method. With this approach the positioning accuracy could be improved, the tracking
system became more robust and the approximate positioning is continuous. Hence, this
shows that once techniques are combined, a robust solution can be developed, which can
mitigate the downsides of each tracking technique. In the work of Kirsch, Miesen and
Vossiek (2014) as well as related papers regarding the Internet of Things, W-LAN is often
used to transport information to a central server for further processing. This type of
connection to a mobile phone or a different device cannot be seen as a tracking technique,
since only information is exchanged and the method is not used for location purposes. In
these setups, W-LAN is part of a hybrid localisation technique but not the source of
localisation. One further example would be the wireless pick-by-light system of Asghar,
Lutjen, Rohde, Lembke and Freitag (2018), where W-LAN is used to establish a more
inexpensive form of a picking system with optimized routes. To conclude this section, it
becomes clear that fingerprinting tracking as well as the trilateration method are the ones
suitable for indoor tracking in a logistical context (Torteeka et al., 2014). Hybrid
approaches are uprising ideas, which require more work to detect their full potential.
2.6.4 Ultra-Wide Band
Indoor positioning is often characterized by a high demand for precision and accuracy
and can be affected by a variety of objects and signals. In recent years, Ultra-Wide
Band (UWB) gained increased interest in indoor positioning, because it enables highly
accurate positioning (Alarifi, Al-Salman, Alsaleh, Alnafessah & Al-Hadhrami,
2016). Zuin, Calzavara, Sgarbossa and Persona (2018) defined UWB as a radio
frequency technology that spreads information out over a wide spectrum of radio
frequencies. This enables UWB to transmit large variety of data while consuming only
little energy (Alarifi et al., 2016). Promwong and Southisombat (2016) additionally
mention that the time difference of arrival can be used with UWB in order to determine
the distance between the reference point and the target. According to Pourhomayoun,
Zhanpeng and Fowler (2012) UWB is defined as a baseband, impulse, and carrier-free
technology. UWB radio communicates with high speed data rates in the respective area
23
by transmitting extremely short pulses of radio signals (Alarifi et al., 2016). Thus, the
high bandwidth of UWB offers the possibility to transmit huge amount of data and the
low frequency of UWB enables this technology to overcome the indoor positioning
challenges of signal interferences through obstacles such as objects and walls. According
to Pahlavan, Krishnamurthy and Beneat (1998) the high accuracy of UWB is very
suitable for the tracking of different applications, such as mobile devices and humans in
an indoor environment. The literature reveals different features of UWB positioning.
Alarifi et al. (2016) state that UWB can also be used for the transmission of near-field
data. As already mentioned, the high bandwidth and the extremely short pulses enable the
signals to pass through obstacles and reduce the impact of signal interferences. This
makes UWB a possible solution for indoor positioning in comparison to other
technologies (Bastida-Castillo, Gomez-Carmona, De la Cruz Sanchez, Reche-Royo,
Ibanez et al., 2019; Alarifi et al., 2016). Furthermore, UWB provides a high accuracy rate
that enables positioning within three to seven centimetres. Therefore, UWB is mainly
suitable for indoor locations that require a highly accurate positioning. In contrast to other
positioning technologies such as W-LAN and barcodes, UWB transmits data over
distance without requiring a direct line-of-sight. Furthermore, it is not affected by noises
or other devices due to its high bandwidth of radio signals. A drawback of UWB are that
the investment and installation costs for UWB are relatively high in comparison to other
technologies. This is due to the fact, that UWB localisation requires at least three receivers
to receive signal strength at any given time. These readers are expensive and must be
precisely synchronized down to a nanosecond to accurately calculate the location.
Moreover, the installation effort is increased, because to keep the readers synchronized,
they are often connected by cables (Pourhomayoun et al., 2012). Thus, when considering
Ultra-wideband as a track-and-trace solution, it should be carefully evaluated, whether a
highly precise positioning is necessary due to the high investment costs.
2.6.5 Bluetooth Low Energy
Regarding Yang, Poellabauer, Mitra and Neubecker (2020) Bluetooth-based indoor
localization is a long existing approach. Bluetooth classic was the used technology of
position determination originally. However, due to its inefficiency this technology has
not been widely used in the past, because the length of the connection process between
the devices required too much time. With the development of the Bluetooth 4.0 (including
24
BLE) the situation changed significantly. BLE is characterized by a relatively low energy
consumption and the configuration options enable a more efficient positioning in
comparison to the previously mentioned W-LAN-positioning. According to Kriz, Maly
and Kozel (2016) Bluetooth Low Energy is an emerging wireless technology for short-
range communication that is designed as a low-power solution for control and monitoring
applications. Bluetooth is an already widely established technology (e.g. in mobile
phones, laptops, automobiles, etc.) and can thus benefit the implementation of BLE
(Gomez, Oller & Paradells, 2012; Dalkilic, Cabuk, Arikan & Gurkan, 2017). BLE
beacons can be considered as the most established BLE applications (Faragher & Harle,
2015). They are small devices that are used to illuminate the respective area by
continuously broadcasting a signal to nearby BLE receivers. This enables devices such as
smartphones or tablets to send or receive data packages when they are close to one or
several beacons. The usage of BLE beacons is very suitable for indoor positioning and
navigation of human in indoor environments (Faragher et al., 2015). Vasconcelos,
Figueiredo, Almeida and Ferreira (2017) mention that the downsides of the adoption of
BLE include the lack of support for large and dynamic data transmissions, security and
privacy concerns and interoperability with other wireless technologies. According
to Dalkilic et al. (2017), localization within buildings is often determined by W-LAN
networks. Due to the often-complex structure of a building W-LAN signals can usually
not cover all areas, which results in positioning inefficiencies. Kriz et al. (2016) agree
and propose that these areas can be additionally covered by additional BLE beacons. BLE
beacons are characterized by their relatively low price, small size and independence of an
external power supply. Thus, they can be considered as a possible supplement to an
existing W-LAN network. However, a high density of BLE beacons is needed to fully
cover an area, which results in high investment costs (Yang et al., 2020). Hence, areas
covered with weak W-LAN signal can be additionally illuminated by BLE beacons.
2.7 Implementation factors of outbound tracking technologies
The literature focusses on several factors, which are generally influential for the efficient
performance of outbound logistical flows. One basic influencing factor is the price of the
goods as well as the connected logistical costs. If these figures take up a big proportion
of the total costs, a transparent supply chain becomes a key issue, which is worth investing
in (Marques, Soares, Santos & Amorim, 2020). As pointed out by Shahmardan and
25
Sajadieh (2020) in their recent work, it is important to consider the mode of truck loading.
A trade-off between waiting for full truckloads in comparison to sending out multiple
trucks to one location is ubiquitous. In some circumstances, partial loading could be more
desirably in comparison to waiting for complete loads to be reached. Hence, the quantity
of shipments is of importance once outbound shipments should be tracked efficiently.
Additionally, the characteristics of the tracked outbound shipment are highly relevant.
One example given by Ling and Huang (2019) are the requirements for food shipments
and the connected benefits of this excessive tracking. These products are not high in value
but need extensive tracking to guarantee food safety. The same applies for critical safety
equipment, where quality issues become a matter of life and death as experienced during
the COVID-19 epidemy. Hassan et al. (2015) looked at several factors in more detail and
identified six broad categories of hindering factors once analysing the implementation of
Auto-ID systems. Besides the mentioned categories, technological issues play a key role.
The connection to external partners as well as the own IT capabilities could be limiting
factors. This is closely related to currently used tracking applications and technologies,
given that they might be easily expandable. This also minimizes implementation costs,
which make more sophisticated tracking solutions appealing to the top management.
Another important outcome of their study was the role of management. Standardized
shipment boxes are easier to track due to their almost identical product features. Decisions
of the management can make a tracking system more tangible and therefore easier in its
implementation. Also, the layout of the warehouse is of importance since some might be
better suitable for implementing tracking technologies than others due to their structure.
Moreover, compliance issues have been a key reason for implementing these technologies
as it requires the involved parties to closely keep track of the goods once they move down
the value chain. Van den Heuvel, De Langen, Van Donselaar and Fransoo (2014)
analysed the effect of proximity on co-located logistical establishments. The most
relevant advantage is the better usage of transport capacities. A close location to the
logistical distribution centre is an investment itself due to higher location prices but
reduces the need for excessive tracking of the outbound logistical flows because of a less
challenging handover to the postal provider. Besides the factors mentioned, a variety of
other influencing factors are relevant. Due to the individuality of each firm, influencing
factors distinguish between each company. Hence, only the most general factors out of
the literature have been mentioned.
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2.8 Empirical model of business process modelling
The field of business process modelling has been looked at in detail on many occasions.
The term has been widely established during the 1960s in the field of systems engineering.
It is defined as the period during which workflows of a process firstly are defined or
modified electronically. The current processes are analysed and improved for the future.
Due to the importance, they are typically performed by business analysts or managers,
who are trying to increase efficiency and quality (Chinosi & Trombetta, 2012). There are
two different business process modelling approaches. On the one hand there are event-
driven process chains, which mostly help to understand business requirements as well as
process improvement initiatives. On the other hand, modelling techniques can be used for
mathematical, rigorous paradigms within process analysis (Recker, Rosemann, Indulska
& Green, 2009).
Mendling, Reijers and Van der Aalst (2010) came up with seven process modelling
guidelines during an empirical study, which summarize important best-practices from
creating business process models of value and have been widely accepted:
1. Only a limited number of elements should be used
2. The routing paths per element should be minimized
3. One fixed start as well as end event should be used
4. The model should be as structured as possible
5. Routing elements further increase complexity and should be avoided
6. Formulate activity labels as clear as possible
7. Decompose a model with more than 50 elements
Chinosi et al. (2012) ascertained in their work that for descriptive purposes, business
process modelling seems to be the right choice. For simulation as well as directly
executable codes other mapping methods might be better suitable. Much of academic
literature is dedicated to topics related to business process modelling, whereas
practitioners struggle with various aspects and find limited practical advices within the
academic literature. Their results suggest that practical applications are concerned with
issues of purpose and adoption of process modelling, while academics tend to focus on
technical issues (Indulska, Recker, Rosemann & Green, 2009). This leads to a simplified
visualization of the current process, which took the seven best-practices into account,
27
since there is empirical evidence that overloaded constructs diminish the ease with which
these models can be build (Recker et al., 2009). Khabbazi, Hasan, Sulaiman and Shapi’i
(2013) looked at the business process modelling in the context of outbound logistics
systems. Since logistics is a process-oriented branch, numerous processes are linked
together to perform several operations. For him, a business process consists of five
elements: customer, composition of activities, value creation for customers, operating
actors as well as organizational units. The differentiation between core and sub-processes
were important to structure the final model consequently. Their final model is able to
visualize outbound processes in a detailed and holistic way and is suitable for closing
potential outbound tracking gaps.
2.9 Basic architecture of tracking networks
Shamsuzzoha and Helo (2011) developed a model to clarify the basic architecture of a
tracking network. According to these authors, the tracking information is centralized for
the provider of tracking services. This actual tracking information can be made visible
through an interface for the customer. The final product is shipped via different
distribution points, which add necessary information. Base station is referring to the point
where the tracking is firstly initiated, often at an early upstream point within the supply
chain. The product is registered in the system and trackers are attached for further
processing. Figure 1 shows how such a system is designed:
Figure 1: Basic Architecture of Tracking Network
Source: Shamsuzzoha et al. (2013)
A centralized server stores the necessary tracking information until the final delivery is
made. This server has a connection to all the intermediate servers during the processing
of the coded item. Information is stored in a central tracking database, where the
information can be retrieved once necessary. The location server contains the information
28
about the condition of the item. This could be used within a value chain to collect detailed
information about the status of the shipment at a given time and place.
2.10 Summary
In the following section the researchers are summarizing key characteristics as well as
benefits and limitations of each technology from the literature review. This should enable
the reader to get a comprehensive review of the technologies before their practical
application. It also helps to distinguish between the importance of the factors to rank them
regarding their relevance. Influential factors also can be summarized in broader
categories. It is important to mention that this list of factors is not complete but rather
individual to each company looked at. The factors with the biggest relevance within the
literature have been the price of the goods as well as the related logistical costs as part of
the total cost share. Higher quality also promotes raised tracking costs. Product
characteristics determine the trackability of products, which is linked to process costs. It
is closely related to compliance issues since a precise tracking might be required. The
technology of the postal provider, as well as the inhouse expertise are connected to the
readiness of implementing new and advanced technologies. Managerial instructions
determine the willingness of the company to further invest into technologies. The layout
of the warehouse as a location specific factor limits the possibilities with the space
available. Proximity is important since long distances between partners increase the risk
for losing the goods in transition. Concluding, it is important to state again that outdoor-
as well as indoor tracking methods would be able to close current track-and-trace gaps.
29
Table 1: Summary of track-and-trace technologies
Source: Developed by the authors
Outdoor positioning Indoor positioning
GPS GSM Barcode RFID W-LAN UWB Bluetooth
Global
coverage
High
coverage
Universal
application
High
communication
rate
Existing
infra-
structure
High
accuracy
Available on
nearly every
device
Usage cost Low
sophistication
Easy setup High storing
capacity
Hybrid
solutions
High trans-
mission
rate
One to many
communications
possible
Indoor
inaccuracy
Indoor
inaccuracy
Possibility
of damage
High installation
effort + costs
Low
coverage
High
investment
cost
Mid
transmission
rate
Constant
battery
power
needed
GSM module
needed
Limited
Storing
capacity
Potential
interferences
due to metal
objects
Depen-
dency
local
realities
Mid trans-
mission
rate
High
investment cost
due to beacon
density
30
3. Research methodology
______________________________________________________________________
In the following chapter the underlying methodology of this thesis is discussed. First, the
structure of research and research philosophy are defined followed by the nature of
research and research approach. Subsequently, the research design and time horizon are
outlined. This is followed by describing the case selection, method of data collection and
the impact of COVID-19 on this study. Subsequently the data analysis is explained.
Finally, the research quality is discussed.
______________________________________________________________________
3.1 Structure of Research
The structure of this research is based on the metaphor of a tree as described in the
book Management and Business Research by Easterby-Smith, Thorpe and Jackson
(2015). The book uses a metaphor of a tree to represent how the research process
unfolds. It uses a simplified cross-section of the trunk to visualize the four main features
of a research design.
3.2 Research philosophy
In order to conduct a well-structured, comprehensible and scientifically substantiated
research, basic assumptions of the research philosophy need to be determined in the
beginning. These assumptions shape and define the viewpoints of the authors as well as
they provide an understanding of how research objects are studied (Saunders & Lewis,
2016). Researchers define the research philosophy as the belief in which way data about
a phenomenon should be gathered, analyzed, and used. Within the scope of this study,
relativism was chosen for the ontology and social constructionism within epistemology.
For ontology, basic assumptions about the nature of reality are made by the researchers
Easterby-Smith et al. (2015). Relativism is referring to a world, where the reality depends
on the perspective of the observer. The knowledge is relative due to the procedures used
in obtaining it. Thus, the knowledge can differ and is dependent on the applied
method. The authors choose relativism for their thesis as there is not only a single truth
in this topic, but a variety of successful applications of truth. Also, the facts depend
on the viewpoint of the authors from a western business perspective. Once conducting
these experiments in a different cultural setting as well as with another academical
31
background, the results could significantly differ. Therefore, it becomes clear that the
authors choose relativism to classify the results of the study as examples and not as
universal and general outcomes.
According to Easterby-Smith et al. (2015) the epistemology is defined as the
philosophical study of the nature, origin, and the limits of the human knowledge. It studies
the theory of knowledge by defining how valid and legitimate knowledge is generated
(Saunders et al., 2016). In this thesis the authors chose social constructionism
as a preferred method. Social constructionism aims to understand the societal reality by
investigating the individual and collective experiences of others via the medium of
language. By taking into consideration the different viewpoints of different stakeholders,
the complexity of the situation can be better understood. Hence, using semi-structured
interviews to gain in depth insights into the interviewee’s perception strengthen the choice
of social constructionism.
Since the aim of this study is to explore potential track-and-trace technologies that can be
implemented into the outbound logistics of a Swedish retailer, the researchers are part of
what is being observed through a literature review combined with qualitative data in the
form of direct observations and interviews. The aim is to understand the whole complex
situation through literature and multiple cases to compare and generate theories of how
the current track-and-trace gap of Intersport can be closed. According to Easterby-Smith
et al. (2015) this is a characteristic approach of social constructionism.
3.3 Nature of research
According to Saunders et al. (2016) the purpose of the research study can be either
exploratory, descriptive, explanatory or a combination of the three mentioned. For this
thesis, an exploratory study design is employed as the aim is to seek new insights, so that
the area can be accessed from a new perspective. An exploratory research design is
usually conducted for a research problem when the researchers have no past data or
limited studies for reference. The literature revealed several possible technologies for
indoor and outdoor tracking that can be connected to the outbound logistics. However,
currently no specific research is conducted for track-and-trace technologies in the field of
outbound logistics. Furthermore, no best practice solution could be found to solve the
track-and-trace problem of our main case example of a Swedish retailer. Hence, this study
32
follows and exploratory research design and aims to seek new information to analyze
potential track-and-trace technologies for the outbound logistics of a Swedish retailer.
3.4 Research approach
The research approach can generally be distinguished between qualitative and
quantitative research. From a conceptual perspective, qualitative research is mainly
concerned with understanding human behavior from the informant’s perspective and
assumes a dynamic and negotiated reality. In contrast, quantitative research is concerned
with discovering facts about a social phenomenon and assumes a fixed and measurable
reality, which is not applicable to the conducted study. From the methodological
perspective, qualitative data are collected through participant observations as well as
interviews and the data are analyzed with themes from the descriptions by informants. On
the other hand, in quantitative research, data are collected through measuring things and
data are analyzed through numerical comparison and statistical inferences (Easterby-
Smith et al., 2015). A qualitative research is more suitable in a complex environment in
which several insights need to be detected and connected. Thus, this study follows a
qualitative research approach to understand the complex environment of track-and-trace
technologies in the outbound logistics of Swedish retailers.
When it comes to the research approach, researchers also distinguish between deductive,
inductive and abductive (Saunders et al., 2016). This study is based on an inductive
approach since there are no existing theories or best practices to solve the specific track-
and-trace problem of the main case example. An inductive approach aims to start with
gathering data and infer conclusions from it. The researchers aim to investigate the current
literature on potential track-and-trace technologies that can be connected to the field of
outbound logistics. Furthermore, an inductive approach conducts observations through
interviews to extend and test the developed generalizations from the gathered data.
Finally, theories and conclusions can be developed that may not be applicable in all cases.
The researchers seek to interview different Swedish retailer and develop potential track-
and-trace solutions to close the track-and-trace gap of the main case example. An
inductive approach tends to follow a qualitative research, which also fits to the
methodological approach of this study.
33
3.5 Research design
In order to create a link between the research philosophy and the methods of data
collection and analysis, an appropriate research design was defined. Research design acts
as the methodological link between those elements and is the basis for answering the
research questions as well as for fulfilling the research purpose (Easterby-Smith et al.,
2015; Saunders et al., 2016). The research design shapes the quality of the research since
assumptions of the research philosophy become comprehensible (Easterby-Smith et al.,
2015). Stake (2006) conducted research in the field of qualitative case studies and
distinguished between instrumental and expressive studies. Instrumental studies look at
specific cases to develop general principles out of them. The latter investigates cases due
to their unique features, which may or may not be transferable to different
contexts. Therefore, the sample size can be one case or more and the observer is clearly
a part of the study. The outcome of this approach is to create theory about the observed
phenomena. The authors chose an expressive case study since the objective is to dive
deeper into the practical example of a company where a clear gap in its procedures exists.
A multi-case study approach is suitable for this thesis, as a multiple case study is
measured strong and reliable and aims to understand the differences and similarities
between the cases. Moreover, they create a more convincing theory when the suggestions
are more intensely grounded in several empirical evidence. Thus, multiple cases allow
wider exploring of research questions and theoretical evolution.
3.6 Time horizon
According to Easterby-Smith et al. (2015), the time horizon of the research design can be
distinguished in a longitudinal or comparative study. A longitudinal study studies the
(same) case over time, whereas a comparative study compares the cases at one moment.
The aim of this study is to compare the different cases to find out whether they have a
comparable track-and-trace gap. Furthermore, the researchers seek to find similarities and
differences in their outbound logistics processes. The impacts one case experienced do
not necessarily mean they are valid for other cases. Moreover, this study is not aiming to
examine how these impacts will change over time, since the purpose of this study is to
develop solutions to close the currently existing track-and-trace gap of Intersport. Hence,
a longitudinal study would not be useful, while a comparative study better fits to the
overall purpose of this thesis.
34
3.7 Case selection & sampling
The authors chose an expressive case study as the objective of the thesis is to dive deeper
into the practical example of a company where a clear gap in its procedures exists. Track-
and-trace has the possibility to solve this issue and therefore the authors are trying to give
advices about which procedure should be implemented. Since track-and-trace is highly
dependent on the context, each case has to be uniquely looked at. Nevertheless, the
authors are trying to profit from good practices out of the analysed case, which might also
be applied to other companies. The downside of this approach is
the limited generalizability of this approach due to its biased sampling selection.
This study is written in cooperation with Intersport Sweden, which is an international
sporting goods retailer. Thus, the focus is clearly put on this case, to develop a custom-
made solution for their outbound logistics process. The case is limited to their biggest
warehouse in Nässjö, Sweden, since the majority of shipments for the Swedish market
originate there. At the distribution centre both the individual stores are supplied with
goods and e-commerce shipments are handled. In this case Intersport currently has no
suitable track-and-trace system to track their shipments at the handover point in the
outbound logistics to their distribution partner. Given the complexity and the individual
requirements for implementing track-and-trace technologies in the outbound logistics of
a company, the criteria for selecting cases and their respective interviewees should be
chosen wisely. Accordingly, the authors selected other cases besides Intersport based on
their comparable business fields and relationship to the distribution partner PostNord.
Hence, PostNord is also considered to gain transparency of the whole process. The
researchers interviewed comparable companies, which are Gina Tricot, Netonnet,
Hemtex, Stadium and Apotek. The goal of examining other cases is to evaluate how these
companies are handling their outbound logistics processes and whether they are also
affected by the track-and-trace gap to come up with possible solutions for Intersport.
The researchers reached out through e-mails to potential interview partners of interest, or
directly through first-hand contacts, in which the interview guidelines and research
purpose were clearly illustrated. By using snowball sampling, additional interview
partners could be found. Once the interviews were confirmed, more detailed information
35
and a General Data Protection Regulation (GDPR), to fulfil the research guidelines and
ethical approach of this study, have been handed out.
In order to gain insights into the individual requirements of track-and-trace technologies
in the outbound logistics of the selected interviewees, the data sampling should be
appropriately conducted. Regarding the complexity of the outbound processes and the
relationship to their distribution partner PostNord, the interviewees should already be
experienced in managing outbound logistics operations. Thus, the authors focus on
logistics operation managers and warehouse managers to gain insights into their outbound
logistics processes. Table 2 below shows the essential information about the interviewees
and the respective conduction of the interview.
Table 2: Information about interview partners
Source: Developed by the authors
Participant Position Professional
experience
Date of
interview
Length Interview type
Intersport Warehouse manager 16 years 08.02.2020 46 min. Face-to-face
Intersport Logistics manager 13 years 08.02.2020 55 min. Face-to-face
Gina
Tricot
Logistics manager 9 years 03.04.2020 26 min Web-based
without video
Hemtex Logistics manager 7 years 09.04.2020 29 min Web-based
without video
Netonnet Logistics manager 9 years 08.04.2020 23 min Web-based
without video
Stadium Warehouse manager 11 years 04.05.2020 32 min Web-based
without video
Apotek Logistics manager 14 years 28.04.2020 30 min Web-based
without video
PostNord Customer
relationship manager
14 years 13.02.2020 58 min Face-to-face
36
3.8 Data collection
To get a profound summary of the existing body of research for this study a literature
review was first conducted by collected secondary data. An extensive study of the
literature revealed which track-and-trace technologies can be currently applied to the field
of outbound logistics and which factors should be considered when developing a track-
and-trace solution. Through the secondary data a gap in the research could be identified.
Primary data was collected afterwards by conducting interviews in order to gain further
insights and knowledge to cover this gap.
3.8.1 Secondary data collection
To gather a profound summary of the existing research, it is necessary to review the
existing literature regarding the topic of this thesis. Saunders et al. (2016) define the
secondary data collection as necessary to generate the research proposal and thereafter
provide the theoretical framework of the study. The purpose of the literature review is to
give a truthful and balanced perspective of the research that currently exists within the
chosen topic. To provide a scientific basis, Easterby-Smith et al. (2015) propose peer-
reviewed journal articles as the most important source of information. Hence, the
literature review clearly focuses on peer-reviewed journal articles to provide a
fundamental scientific theoretical framework for this study. The database Web of Science
was mainly used to find peer-reviewed journal articles which are relevant for the topic of
this study. As the researchers identified that only a limited number of articles related to
track-and-trace technologies in outbound logistics could be found, multiple keywords
were used in different combinations in order to move from broader to a narrower
literature. The researchers identified further related articles by the snowball principle. The
research resulted in 79 relevant articles that were summarized and clustered according to
their topic, theories and findings. Furthermore, secondary data in terms of company
reports were used to gain a more accurate understanding about the empirical data. Internal
company reports from Intersport were used to analyse the number of lost parcels and
calculate the economic damage of the current track-and-trace problem of Intersport.
3.8.2 Primary data collection
Several methods of primary data collection exist to conduct first-hand data. Common
methods are surveys, direct observations, experiments or interviews. Primary data can
37
give new insights and add value to the subject of the study and enhance the quality of the
research (Easterby-Smith et al., 2015). According to the qualitative research approach
interviews and direct observations are the main primary data collection methods in this
study. The researchers conducted semi-structured interviews to gather relevant data and
still having the opportunity to identify new ways of seeing and understanding the topic at
hand. A guide with pre-defined questions was developed with the ability to formulate
fitting questions throughout as well as follow-up questions. The questions and structure
varied in every interview since the interviewees answered the questions differently. A
different interview guide was developed for PostNord, because the logistics service
provider connects all analyzed companies by delivering their shipments. This approach
of data collection also fits to the explorative research approach of this study. Furthermore,
direct observations were used to collect primary data. The researchers inspected the
warehouse of Intersport and the sorting centre of PostNord. It provided an in depth
understanding of the current processes and served as a basis for the development of a
track-and-trace solution for Intersport to meet the expectations from all involved parties.
3.9 Impact of COVID-19
In the beginning of 2020, the Corona virus started to spread throughout the world. The
virus got declared as a global pandemic and several countries set up societal restrictions
to prevent its spread. Many countries decided to shut down the economy and to put society
into quarantine. In Sweden there are widespread quarantine guidelines that companies
and people must follow. Since the researcher’s primary collected data for this study
through interviews and direct observations is based on Swedish cases, the authors
experienced severe problems to reach out to companies for potential interviews.
Furthermore, the authors had to change the interview structure from face-to-face
interviews to web-based interviews due to the potential risk of infection. Moreover,
Intersport was highly affected by the impact of the Corona virus. Due to falling sales, the
company has filed for a court-led restructuring as it seeks to avert bankruptcy. Thus, the
researchers were not able to conduct further interviews with Intersport to gain additional
relevant information for this study.
3.10 Data analysis
In terms of data analysis several approaches exist. A grounded analysis is one of the
foundational methods when it comes to the analysis of qualitative data (Saunders et al.,
38
2016). As mentioned before, a multiple case study approach was selected to gather the
required data. Saunders et al. (2016) state that a grounded analysis is useful for analyzing
and comprehending a significant amount of data gathered through multiple case studies.
Yin (2015) mentions when analyzing the data from several cases, the aim is to find
patterns and differences within the data. Accordingly, a grounded analysis is suitable, as
this study follows an inductive approach and aims to understand the whole context of a
topic, to eventually develop theory from categories that are grounded in the data
(Easterby-Smith et al., 2015). The main purpose of this study is to investigate how
existing track-and-trace technologies can be effectively implemented into the outbound
logistics processes of Intersport to solve the current track-and-trace problem. Thus, it is
important to be faithful to the view of the interviewees to understand the whole context,
which will be used to eventually create theory from it. Grounded analysis is more
comprehensive as compared to other approaches for analyzing qualitative data (Easterby-
Smith et al., 2015). The grounded analysis is mainly guided by a codes-to theory model,
which follows a seven steps coding technique to analyze the data. The authors first
reflected and familiarized on the interviews by reviewing and discussing the
transcriptions. Later, the research team analyzed the transcripts by summarizing them and
clustering them into codes and groups of data. This enabled a more comprehensive
comparison between the interviewees to identify similarities and differences. By
categorizing the codes, the researcher identified concepts and linkages between them and
connected them to the purpose of the study. The re-coding was done by re-evaluating the
transcripts and the theory behind it. Once the codes and categories were clearly defined,
the secondary data was linked to the primary data. The linking was done by comparing
the key categories and concepts and how they can be integrated into the theory to develop
a solution for Intersport. Lastly, the researchers re-evaluated the coding process to ensure
that all aspects were considered correctly. An example of the coding process is presented
in the appendix.
3.11 Research quality
To ensure high research quality, reliability and ethical considerations were carefully
considered throughout the study. A structured and transparent research enables
replication for other observers (Saunders et al., 2016). A clear methodological structure
provides full transparency for others to replicate and evaluate the study and is a
39
fundamental part of ensuring reliability in an inductive approach (Saunders et al., 2016).
External reliability is reached through replicability of data collection and analysis, to
produce similar findings and to proof consistency of the research (Easterby-Smith et al.,
2015; Saunders et al., 2016). Hence, to enable other researchers to produce similar
findings when replicating the research, the interview questions are provided in the
appendix.
Besides external reliability and consistency in research findings, the consistency of the
research process must be guaranteed. Further known as internal reliability, it can be
achieved through data analysis and collection performed by multiple researchers
(Saunders et al., 2016). To ensure the consistency of the research a stability in coding and
interpretation of the gathered data needs to be established (Saunders et al., 2016). This
research was conducted by two Master students of Jönköping University. Research
consistency was achieved by regular cross-checks during the entire research process.
Furthermore, ethical considerations were precisely regarded to protect the interests of the
interview participants and to ensure the academical standards. Thus, it is important to
protect the dignity as well as avoiding any harm of research participants by ensuring
confidentiality of collected data (Easterby-Smith et al., 2015). This was ensured by giving
all interview participants the opportunity to stay anonymous in this study. Furthermore,
the authors provided all research participants with a fully informed consent of this study,
including the relevant information such as the purpose, motivation and the research
questions. Contact information of the researchers were send to the participants to be
available for further questions or clarifications. The participation in interviews were fully
voluntary and the interviewees were able to end the interview at any time. Besides the
protection of the interest of the interview participants, the integrity of the research needs
to be ensured (Easterby-Smith et al., 2015). This was guaranteed by defining and strictly
following the procedural recommendations. The nature of data collection was clearly
adhered to the academical principles and never violated. All sources were denoted by
using a citation and knowledge organizing software. False or misleading reporting of the
research results was prevented by continuous review sessions and feedback from the
supervisor.
40
4. Empirical findings
______________________________________________________________________
This chapter presents the empirical findings of the study and provides a more in-depth
understanding of the outbound processes of Intersport.
______________________________________________________________________
4.1 Empirical model of business process modelling
As already extensively explained in the literature review business process modelling is
considered as the main model to visualize the outbound logistics processes of Intersport.
This study follows an event driven process chain modelling in order to better understand
business requirements as well as process improvement initiatives. The differentiation
between core and sub-processes are important to structure the outbound logistics
processes consequently. The outbound process of Intersport is part of that event-driven
modelling, since it is later extended with additional steps to close the tracking gap at the
handover point to PostNord. Since Intersport is regarded as the main case in this study
the applied model of business process modelling is only used to visualize and clarify the
outbound processes of Intersport. At first, the current outbound process is modelled to
underline the initial situation. After reviewing the different cases, the final outbound
process of our preferred solution is modelled to clarify how the authors effectively closed
the track-and-trace gap of Intersport. Due to the complexity and to simplify the analysis
of the empirical findings, the outbound processes of the chosen cases are not modelled.
4.2 Introduction to Intersport
With retail sales of EUR 11.9 billion in 2019 and more than 5,800 affiliated stores in 57
countries, Intersport is one of the world’s leading sporting goods retailer. According to
the company strategy, the long-term goal of Intersport is to become a universal supplier
of sporting goods. The product range can be clustered into several specialized business
units – Apparel, footwear, hardware I (winter and summer hardware products) and
hardware II (outdoor, fun, wheel sports, ice, water sports) (Intersport AB Sweden, 2020).
For this research only, Intersport Sweden with its 151 stores is considered. This case
focuses on its central warehouse in Nässjö, which is Intersport's largest warehouse in
Sweden and responsible for all shop supplies and the e-commerce business.
41
Intersport is currently facing problems in the tracking and tracing of their shipments in
their outbound logistics. Intersport uses a barcode system and a shipping number to track
their shipments. However, it is currently not possible to cover the whole tracking of the
shipments in their outbound logistics. After the picking is done, the parcels are stored on
pallets in the outbound logistics area. PostNord is the only service provider of Intersport
in Nässjö and picks up the shipments three to four times a day. Since no loading manifest
exists, there is no official confirmation from PostNord that the shipments got picked up.
Thus, a so called “black-hole” exists, because it is only possible to track the shipments
again when the parcels are scanned in the distribution centre. Hence, partials and
shipments can get lost during transportation and before the scanning in the inbound
logistics area of PostNord.
4.3 Current track-and-trace processes of Intersport
In the following section the processes of Intersport are explained and modelled according
to the applied business process. The lower graphic shows their currently used operation
procedure in form of a model. It is therefore part of a general process management since
the outbound process is visualized. This visualization allows for a detailed as well as a
dynamic analysis of processes, which is helpful to fully understand the complexity. It all
starts with their e-commerce system where the initial order is recorded. This system is
directly connected to Microsoft Dynamics AX, which functions as an ERP system. This
system transfers the data to a system called Astro, where the milestones for the fulfilment
of the order are stored. It therefore initially creates a label, with which the good is picked
at the warehouse in Nässjö. This is relevant for all e-commerce orders as well as direct
fulfilments for items ordered within the brick-and-mortar stores of Intersport in Sweden.
After the picking is completed, the entered data flows back to Astro, where the ordered
items are matched with the shipping box. The tracking number is added to the shipment,
so that the status of the shipment can be seen after PostNord has received and firstly
scanned the parcel. The tracking number as well as additional information regarding the
delivery are then sent out to either the ordering store or the final e-commerce customer.
Once the parcel has reached its destination the status of the shipment is changed to
complete, which is the final step within the Astro system and the shipment is archived
shortly afterwards. Therefore, the system is dependent on an initially successful scan of
42
PostNord, since no proof that the shipment has left the warehouse is entered. The status
updates from there on are thus referring to status updates of the PostNord system.
Figure 2: BPM of current outbound logistics process
Source: Developed by the authors
4.4 Outbound processes of Intersport
There were two interviews conducted with employees at Intersport, since a succession
took place during the time of the Master thesis. In these interviews the current gap and its
gravity became visible. PostNord ships on average around 226,000 pieces a month to its
stores, which are packed in several boxes. In case the shipments are small in size or
weight, they can be bundled together in one single carton in order to lower costs of
delivery. In its operation with PostNord Intersport uses a single sized carton for most
shipments, which makes the stacking easy. Their picking software predetermines which
shipments should be bundled to a single shipment. In average around 16 out of these
shipments go missing per month, in other words around one shipment goes missing every
other day. These losses lead to higher costs, but also the intangible emotional
disappointment from the customer must be considered when his goods are delayed on the
way to his store. Therefore, it becomes clear that Intersport wants to establish a solution
to overcome this recurring issue. Nevertheless, the economic impact of these lost parcels
is not overwhelmingly in gravity, which limits the amount of financial resources
Intersport is willing to invest to close this tracking gap and increase their customer
experience. Intersport also contacted PostNord regarding possible solutions from their
side, but a suitable solution could not be established so far.
43
4.5 PostNord – The linking logistical service provider
To learn about the service offering of PostNord, a first-hand analysis could be conducted
with an additional interview for in-depth understanding. It is important to mention that
only interviews with companies that use PostNord for their deliveries within Sweden have
been conducted. Therefore, PostNord can be referred to as the universal parcel delivery
agency. They stated that the problem of tracking shipments during the transition between
the customer and them is known and affects all their clients. However, no centralized
solution for all clients has been established or proposed yet. Nevertheless, PostNord stated
that they are open for business innovations if they do not disrupt their workflow. In some
cases, it took PostNord over a day to first scan a parcel in their facilities, which results in
a long period of not knowing its status. These parcels also remain in a limbo of
responsibility since it is not clear who is ultimately responsible for the parcels at that
stage. Consequently, the current process is highly dependent on mutual trust to work
through the claims made by both parties. PostNord therefore is interested in bringing
clarity to this gap in order to reduce uncertainty in its procedures. This also reduces the
level of variability in the handling of these claims, since no standard operating procedure
exists, and the handling is also dependent on the person responsible. PostNord also
claimed that the issue was not frequently asked from the industry in general, but the
problem is known and so far, no generalizable solution could be presented to their broad
variety of customer. There has been the wish about a loading manifest for outbound trucks
to verify which parcel is on which truck. PostNord responded that they were neither able
nor willing to fulfil this request. PostNord made clear that only a price sensitive solution
is likely to be established on a bigger scale, since the economic impact of lost parcels is
limited. Therefore, companies are not willing to invest large amounts of money for the
solution of this tracking gap. Nevertheless, an inexpensive and user-friendly solution with
only minimal added process costs is expected to have a large customer base within other
customers of PostNord.
4.6 Outbound processes of various retailer
Gina Tricot is having their central warehouse in the greater Gothenburg area. All Swedish
brick and mortar stores are getting their deliveries, like Intersport, from this central
warehouse. PostNord is organizing the overall outbound logistic system for Gina Tricot.
In their case, an empty trailer is positioned on a loading dock onto their warehouse in the
44
morning to be able to place the parcels directly into it. Over 90% of all shipments have
the same size, so that the stacking process is simplified. During the afternoon, the returns
are delivered back to the warehouse by PostNord and an additional pickup of outbound
boxes is taking place. On average, 800 boxes leave the warehouse during this process per
day. Gina Tricot did not experience regular problems with missing outbound shipments
but would be also interested in closing the visibility gap. In their Danish branch an
experiment with a handheld scanner took place, which was directly connected to the
tracking system of PostNord. Once a parcel was scanned inside the warehouse of Gina
Tricot, the responsibility shifted to PostNord even before the pickup took place. The
security was ensured with a metal cage, where the scanned parcels could be stored. The
project terminated due to the additional process steps and the related costs. It is expected
that RFID microchips within the shipping label are possible future solutions.
In the case of Netonnet, the warehouse is placed next to a distribution centre of PostNord.
Therefore, no real track-and-trace gaps have been occurred since the parcels go directly
with a conveyor belt into the distribution centre. Parcels are scanned with a scanning bow
before they leave the warehouse in order to protocol the time, they have left the facility
of Netonnet, since no picking up of parcels is taking place. The willingness to further
invest into track-and-trace technologies is limited, since full transparency about the
parcels is already given. Their developed solution is related to their geographic proximity
to the distribution centre and therefore cannot be transferred to companies with more
remote locations. Nevertheless, the solution shows that unique features related to the
location can have a severe impact and generalizability is hard to develop.
In the interview with Hemtex it became clear that a track-and-trace gap existed in their
outbound warehouse procedures. The warehouse in Sweden handles shipments to other
countries with different handling partners as well, but for Sweden all deliveries to the
stores are made by PostNord. Currently the shipping boxes are loaded into three to four
trailers of PostNord each day at the warehouse, which are then picked up to be transported
to their sorting facility. It was mentioned that the problem exists, but not with the same
relevance as for Intersport, since the goods delivered are lower in value, so that a missing
parcel has a minor economic importance. Therefore, their willingness to invest in
solutions to close the gap is limited. Additionally, they just recently changed from an
45
external warehouse provider to their own operation, where the number of missing parcels
could be reduced, which further lowered the gravity of the problem. Since the change was
also geographically, a new distribution centre of PostNord became responsible for the
first processing of their goods, so that less parcels have been lost during the handover
process. This displays the different levels of operating reliability between the warehouses
of PostNord, which are an additional influential factor.
In the case of Stadium, similarities to Intersport became obvious. Stadium has a similar
product range and the number of brick and mortar stores can be compared. Stadium
reached an agreement with PostNord TPL AB in 2018 about the automatization of their
warehouse. This included a switch from mostly manual operations to automatization. Due
to this close cooperation with PostNord, the described “black-hole” in the outbound
logistical processes does not directly exist for Stadium. Thanks to the close cooperation
between Stadium and PostNord, goods are picked and scanned directly from the
warehouse, so that the responsibility of PostNord starts earlier within the process. The
warehouse is also connected to the distribution centre of PostNord with several shipments
per day, which is closely located. Therefore, parcels are scanned for the first time
contemporarily, so that missing parcels are soon visible. Also damaged or uncomplete
shipments, who get returned in the distribution centre, are easy to trace back and can
therefore be quickly corrected. Hence, Stadium cooperated with PostNord to further
increase their productivity along the supply chain, so that the used up financial resources
of the delivery process are optimized. Consequently, Stadium has currently no track-and-
trace problems due to the outsourcing of these process steps to their postal provider.
In the case of Apotek, the shipped goods are not directly related to the retail sector in all
cases, but since Apotek belongs to ICA, they are sold in a retail environment. The
warehouse operation has been outsourced to PostNord, who delivers to all 380
pharmacies five times per week. All types of drugs are transported, and more than 65
million consumer packages have been shipped out from their central warehouse in
Norrköping last year. Apotek invested into their automatization technique within the
warehouse to keep up with the raising growth. With these automatization processes,
reliability of the send out goods could be raised by two percent. This is from special
importance to Apotek, since some of the goods are prescription drugs, which are time-
46
sensitive. Also, Apotek has to ensure that these goods only get to the person in need, since
it is a legal crime to hand them out unauthorized. Apotek ensured this with an outsourced
warehouse to PostNord, so that it is the responsibility of PostNord to deliver these
pharmaceutical items to the designated stores. Besides the benefits of a state-of-the-art
automatized warehouse, this is the reason for the excessive cooperation with PostNord.
Subsequently, Apotek is not interested in investing into track-and-trace solutions as it is
no longer their responsibility to ensure the safety and completeness of the goods shipped.
4.7 Summary of outbound logistical processes
In order to develop a track-and-trace solution for the outbound logistics of Intersport, it
is necessary to point out the most important factors of the empirical findings (see table
3). Firstly, the interviewees mention the type of products as an important factor that must
be considered for developing a track-and-trace solution. The value of the products
determines the damage and thus the investment volume for a possible track-and-trace
solution. Also, special regulations, like in the case of shipped pharmaceutical products,
require a more extensive tracking in comparison to standardized retailing goods.
Moreover, all interviewees pointed out the importance of the size of the outgoing parcels
because a standardized packaging offers a different choice of a tracking solution. The
overall layout and structure of the warehouse is essential for determining a track-and-
trace solution. Especially the layout of the outbound logistics area must be considered
because the size and process capabilities are tied to track-and-trace technologies. The
internal IT capabilities and the currently internal used track-and-trace technologies also
must be considered. Certain track-and-trace technologies require a high installation effort
and IT capabilities and could significantly increase the investment volume. Overall the
mentioned factors and parameters can be categorized as internal company factors for
determining a track-and-trace solution in the outbound logistics.
Secondly, all interviewees agreed on the importance of PostNord, when developing a
track-and-trace solution to close the current gap in the outbound logistics. The willingness
of PostNord to engage in a solution must be considered, because also PostNord wants to
prevent interruptions in their processes. As already pointed out in the internal company
factors, it is also important to consider the IT capabilities of PostNord, to develop an
overall efficient solution. Moreover, the proximity to the sorting centre of PostNord is
47
important since the warehouse of Netonnet is directly connected to the sorting centre of
PostNord and hence requires a different track-and-trace solution for their outbound
logistics. Furthermore, it is important whether the parcels get loaded directly onto the
truck of PostNord, or whether they are preloaded on a trailer. This enables different track-
and-trace solutions. Lastly, the interviewees mentioned the type of transportation. It must
be considered whether the shipments get picked up by a milk run, a collective pick-up
from several customers, or direct transportation. If the parcels would get picked up by a
milk run, a more accurate track-and-trace solution is required. Overall, the mentioned
factors can be categorized as external factors of the logistics service provider.
Thirdly, the interviewees proposed different track-and-trace solutions to solve the current
track-and-trace gap. The scanning bow can be considered as the main solution since it
offers a standardized process and a direct interface to the database of PostNord. Moreover,
it was also the proposed solution by PostNord since it would not interrupt their work
processes. The handheld scanner with a direct connection to the database of PostNord
was also mentioned as a suitable solution to close the current track-and-trace gap.
However, this solution comes along with an increased process effort since the parcels
must be scanned twice.
Lastly, the interviewees also pointed out the possibility of a solution via RFID. Either by
RFID tracking labels which are attached to the parcel or by using reusable and foldable
trailers to track the shipments. The mentioned solutions can be categorized as proposed
track-and-trace solutions.
48
Table 3: Summary of analysed cases
Categories: Factors:
Internal company factors
Type of product
Structure of warehouse
Internal IT-capabilities
Value of damage
Currently used track-and-trace technologies
Size of parcels
External factors of logistics
service provider
Willingness of PostNord to engage in solution
IT-capabilities of PostNord
Proximity to the sorting centre of PostNord
Milk run or direct transportation
Trailer or direct loading on truck
Proposed solutions
Scanning bow
Handheld Scanner connected to database of PostNord
RFID labels
Foldable and reusable RFID boxes
Source: Developed by the authors
49
5. Analysis
______________________________________________________________________
This chapter presents the underlying analysis and its subsequent results. Furthermore,
potential track-and-trace solutions for Intersport and the examined cases are explained
based on the empirical findings.
______________________________________________________________________
5.1 Evaluation of the examined track-and-trace technologies
As already explained in detail, outbound logistics represents the interface between
internal processes in the warehouse and external processes in the outside world. In terms
of track-and-trace, this means that both indoor and outdoor tracking technologies can be
used in combination. In the case of Intersport, the track-and-trace problem lies in the
transfer point to PostNord and the subsequent transport process. Intersport's internal
tracking process is completed as soon as the consignments are picked, labelled and made
available in the outbound logistics zone. The transfer process to PostNord is defined by
the loading of the shipments onto the PostNord truck. From this point on, as well as for
the subsequent transport process until the subsequent unloading in the distribution centre,
there is currently no possibility of tracking and tracing. Accordingly, a solution must be
developed that ties in with the existing internal tracking method of Intersport or an
additional new method must be implemented.
PostNord’s current operation is starting with the scan inside their facilities. No loading
documentation about what has been picked up at the warehouses of their retail partners is
taking place. Consequently, parcels are marked as in possession once they have been
scanned for the first time at the facilities of PostNord. This results in not having a clear
sense of responsibility for the first transport to the sorting centre. Once the amount of
outbound shipment is congruent with the scanned ones, no problems arise. If there is a
discrepancy, discussions about the responsibility occur, which are currently handled by
groups responsible for claims at PostNord as well as correspondingly their retail partners.
During the literature review, all track-and-trace technologies that are suitable for the
complex interface of outbound logistics were considered. Based on the findings of
interviews and direct observations, as well as the individual occurrences of Intersport,
50
certain technologies can be excluded for this application. Although the tracking problem
mainly relates to the transport process, the main focus is on the transfer process between
Intersport and PostNord. It must be possible for the system to define precisely that the
consignments have passed into the area of responsibility of PostNord.
As discussed in previous chapters, the advantages and disadvantages of GPS were
presented. GPS is one of the best known and most widely used track-and-trace methods
worldwide (Chirakkal et al., 2014; Sultana et al., 2016). Due to the use of satellites for
positioning, GPS offers a global coverage for tracking shipments, vehicles, and persons
(Kandel et al., 2011). In addition, the comparatively low cost of use of this technology
offers a further advantage (Lohnert et al., 2010). The disadvantages of GPS clearly lie in
its limited outdoor positioning range, as it is unsuitable for indoor positioning (Kandel et
al., 2011). Supported by the statements of the interview partners, this technology can be
excluded in our case, because although GPS is suitable for positioning during the
transport process, the transfer point of the goods to PostNord cannot be clearly defined
and anchored in the system with this technology. Only the freight itself can be tracked,
but not the individual shipments themselves.
Another track-and-trace technology similar to GPS is GSM. Positioning via GSM has
developed into a widely used track-and-trace technology in recent years and is also
characterized by a high level of worldwide coverage (Tian et al., 2015). The positioning
is done by using the mobile telecommunication network, which has the advantage of low
complexity due to the use of an already existing infrastructure (Hussain et al., 2009).
However, GSM, like GPS, is primarily used for outdoor positioning applications.
According to Varshavsky et al. (2007) there are recently developed and more accurate
methods of indoor localisation. However, they require a highly custom infrastructure. In
addition, this track-and-trace technology is dependent on a remaining GSM network as it
requires an already existing infrastructure. This technology can also be excluded for this
application case, as it is not possible to precisely track the individual shipments and the
transfer point to PostNord cannot be exactly defined and covered.
In contrast to that, a possible indoor tracking method is W-LAN. The advantage of this
technology is that an already existing infrastructure at Intersport can be used. W-LAN is
51
one of the most widespread technologies today. Another advantage of W-LAN tracking
is the possibility of hybrid solutions (Kirsch et al., 2014). Due to the widespread use of
W-LAN, this technology can be efficiently combined with other track-and-trace
technologies. The disadvantage of this technology, however, is the standard moderately
low illumination. This results in high investment costs, as the corresponding hardware
has to be installed. In addition, W-LAN positioning is very dependent on local conditions,
as it mostly requires a direct line of sight. Noise and objects can influence the positioning
accuracy (Khan et al., 2017). This makes the application in a logistics environment more
difficult. Therefore, the W-LAN localisation can be excluded for this application as well.
The local conditions of Intersport, as well as the high investment costs do not allow the
use of this track-and-trace technology.
Similar to W-LAN, the track-and-trace technologies are Bluetooth low energy and Ultra-
wide band. Both technologies are designed for indoor positioning. UWB refers to the use
of radio frequencies and is characterized by a high accuracy (Alarjfi et al., 2016). BLE
uses the widely used Bluetooth industry standard and is available on most devices (Yang
et al., 2020). Bluetooth low energy requires relatively high investment costs due to the
installation effort of additional BLE beacons and can be used to extend the accuracy of
W-LAN positioning (Kriz et al., 2016). UWB requires relatively higher investment costs
and installation efforts, to guarantee a high accuracy. Both technologies offer potentials
to be used in the outbound logistics. However, both technologies are more suitable for
general positioning and localization in warehouses. Thus, the installation effort to
implement one of these technologies to cover the track-and-trace gap for Intersport would
be too high. Intersport requires a simple solution to close the current gap. Hence, these
technologies are not regarded in this case, but further research could be conducted to
evaluate these technologies as a main preferred track-and-trace technology for the
warehouse of Intersport.
As already introduced in previous chapters, the benefits as well as downsides of RFID as
well as Barcodes have been introduced. Barcodes are universally applicable due to their
standardized size as well as layout, which also lowers their setup costs. This makes them
readable for a variety of devices and therefore simplifies the handling process so that the
areas of usability are broad (Melgar et al., 2014, Vartiainen et al., 2008). The downsides
52
are the limited storage capacities of the data within the label as well as the high
susceptibility for possible damages of the label, which would result in severe disruptions
of the track-and-trace efforts (Wang et al., 2018). In the case of RFID, the high
communication rate could be made use of, since the scanning is simplified in comparison
to barcodes (Want, 2006). It therefore takes less time, since the chip can be read from a
variety of location and angles. These chips can also store considerably more information
than barcodes, so that more detailed tracking information can be attached to the shipment
(Lu et al., 2018). These systems result in complex installation procedures, which are
related to high setup costs. Another challenge is the possible interference with nearby
objects due to their reflections within the scanning process. A metal high rack might
distract locational tracking efforts, so that the overall system is in danger of losing its
accuracy (Choy et al., 2006; Xiao et al., 2007; Heidrich et al., 2010). Therefore, the
individual setup of each warehouse must be looked at in detail.
After the interviews have been conducted and the coding was completed it became clear
that all interviewees preferred the solution connected to RFID and barcodes. All
interviewees mentioned the existence of the current gap whilst being willing to invest into
working solutions in order to overcome it. A difference in the amount of money which
these companies were willing to invest could be identified. The amount differed
depending on the gravity of the problem and the value of products sold. All interview
partners saw a benefit in increased transparency during the handover process as well a
connection of currently used technologies within the supply chain. This increases the
overall connectivity during the value creation process, so that the sharing of information
becomes simplified. This is also related to the fact that all companies organized their
outbound logistics for the Swedish market solely by utilizing the services of PostNord, so
that a procedural change would have a widespread benefit for all shipments. Also, all
interview partners claimed that the process with PostNord is not standardized and rather
dependent on the person responsible. All interviewees also used boxes with the same
metrics in order to simplify their outbound processes, which would benefit the barcode
as well as the RFID solution, since the labels could be placed on the same spot so that the
scanning process could be optimized. Since Intersport is already using a barcode tracking
system in cooperation with PostNord, it would be suitable to develop a solution based on
this technology or in combination with it, in order to keep the investment cost low.
53
5.2 Potential solutions for Intersport
On the basis of the interviews as well as the observations at the warehouse, proposing
solutions for Intersport are made to overcome their track-and-trace gap. The solutions
include economic implications as well as location-specific factors. With only one parcel
to go missing every other day, the proposed solution should be inexpensive in its
implementation as well as in its operating costs. In the proposed solutions the authors also
consider the requirements of track-and-trace technologies in the context of Intersport.
Detailed tracking solutions were not required, so that more expensive solutions are not
endorsed, even if their results would be more accurate than the suggested ones.
The first proposed solution would be related to the solution of Netonnet. The parcels could
be transported via a conveyor belt into a cage, where they are stored until they are picked
up by PostNord. Once a parcel is scanned with the scanning bow, the responsibility over
the shipment shifts to PostNord. This procedure can be secured with cameras, which
ensures that no parcel is taken out of the cage after it has been successfully scanned for
the first time. Since all shipments of Intersport leave the warehouse with PostNord as
their handling agent, the current outbound logistic area could be fenced to implement this
standard operating procedure. All shipments already have a final PostNord label, which
makes the scanning by the automated scanning bow possible. The data could be directly
transferred to PostNord. After the scanning, the parcels must be stacked on top of each
other in the same way as it was done outside of the cage. Therefore, this procedure would
need the investment of a conveyor belt with a scanning bow as well as a fence and an IT
access to the systems of PostNord in order to share the data. Hemtex also preferred this
solution for their own warehouse as a possible future implementation.
Figure 3: Modelled solution with scanning bow
Source: Developed by the authors
54
The figure illustrates the future layout of the outbound area of Intersport. The pallets on
the left symbolize deliveries that are ready to ship and therefore fully boxed with a
transport label on them. They are loaded onto the conveyor belt, where the label of
PostNord is firstly scanned and the parcel is undergoing the final check regarding the
transportability and whether the label is correctly attached. If that check turns out to be
negative, the parcel is put aside, so that the problem can be fixed. If the parcel is ready
for shipment, it is transported into the cage, where the responsibility shifts to PostNord.
The delivery is then loaded onto the trailer at the warehouse, symbolized here with the
grey rectangle, where it is finally transported to the sorting facility of PostNord. In the
current process the parcels are directly put into the outbound area once the picking process
has been finalized. Next, they are picked up by the delivery driver of PostNord by
collecting the parcels and loading them into the delivery truck.
The second solution would be related to the pilot project of PostNord in Denmark in
cooperation with Gina Tricot. A handheld scanner could be handed out to the warehouse
staff. This solution would require less setup costs in comparison to the scanner, since only
a W-LAN connection to the scanner must be established. The system would be ready for
operation within a short period of time. PostNord also needs to play an active part in the
implementation process, since the scanner must meet their internal requirements. A
downside would be the raised process costs of Intersport since each parcel needs to be
scanned individually. This raises handling time and thus the overall process costs.
Nevertheless, the system has proven to be economically inefficient in the past, so that a
more detailed calculation about costs as well as benefits would have to take place. On the
other hand, the handheld scanners have been used in the past, so that existing technologies
could be used.
The third solution would be the use of RFID chips inside the shipping label. This would
allow to scan the parcels even without visual contact to the label, so that the scanning
precision is raised, and the overall process shortened. This solution should be combined
with the utilization of reusable plastic boxes. These boxes can be folded after they have
been used, stacked together, and send back to the warehouse as one bundle. In the
interview with PostNord it became visible that these boxes are already used by some
clients to lower their environmental impact. This would also reduce the variable costs of
55
the labels since RFID chips could be placed permanently inside these boxes. Besides the
costs for the individual label, printer, scanner as well as antennas for a wireless network
must get installed. Another important point to mention is the sustainability of these
shipments. Every company is confronted with the challenge of how to make their
shipments more sustainable. Since a RFID label has metal components in it, its
degradability is limited. This leads to questions about how these particles can be recycled
after they have arrived at the home of the customer. One way to overcome this issue
would be the usage of reusable and foldable plastic boxes, which ensure environmental
compatibility. RFID chips on single use boxes on the other hand would significantly
worsen the ecological footprint of Intersport. Gina Tricot mentioned in their interview
that it is planned to implement such a technique in the long run with the estimation of
further decreased sourcing prices for each label.
As possible solutions from a business side are looked at, estimations about the needed
investments must be conducted. In the following paragraph, calculations about the
economic implications of the three anticipated solutions have been made to estimate the
break-even-point of each proposal. The outcome is a cost-benefit analysis, which should
help in finding the optimal solution for Intersport. The cost estimations are based on the
information of Intersport, PostNord, as well as market prices of the required hard- and
software. Additionally, an employee of a logistic consultancy was contacted for further
estimations about the required implementation time.
Table 4: Cost calculation of proposed solutions
Cage with scanning bow Handheld scanner RFID label
IT implementation: 5 days
* 10,000 SEK/day =
50,000 SEK
IT implementation: 5 days
* 10,000 SEK/day =
50,000 SEK
Each RFID label ~5 SEK
Scanning bow: 50,000
SEK
2 Handheld scanner *
10,000 SEK/piece =
20,000 SEK
RFID Printer = 20,000
SEK
Conveyor belt:
10,000 SEK/m * 5m =
50,000 SEK Total: 70,000 SEK
2 Handheld scanner *
10,000 SEK/piece =
20,000 SEK
Cage fence: 2,000 SEK/m
* 20m = 40,000 SEK Total: 40,000 SEK
Total: 190,000 SEK
Source: Developed by the authors
56
The calculations show that a major difference exists between the three different scenarios.
On a positive note, all three solutions are creating a feedback for Intersport if the added
shipping label is functioning properly. In the past, Intersport had problems with missing
or damaged labels, which would only be noticed at the distribution centre of PostNord,
where the parcels had to be handled manually. It takes additional time to correctly trace
them back to Intersport and send them back to the warehouse. With the first scan at the
facility of Intersport, the overall default rate is reduced. In contrast, the first solution has
the highest fixed costs of 190,000 SEK, whereas the RFID solution has limited setup costs
of 40,000 SEK. Nevertheless, each label creates additional costs, which add up over time.
The solutions with directly connected handheld scanner has low fixed costs of 70,000
SEK, but extra salary costs due to the additional process step of the scan. These are not
calculatable, as it is unclear how long the processes are taking. If it is estimated that each
shipping box, where one is lost every two days, has a replacement value of 500 SEK, it
takes 760 days or about two years in order to break even for the first proposition. This
point could also be reached earlier when the process costs for handing the claims is
included. On the other hand, the RFID method is taking less than 200 days to compensate
the fixed costs, but additional variable costs for the labels are occurring for each parcel.
The decision if more fixed or variable costs should occur over the usage period is from a
strategic nature and should be made by Intersport. The researchers suggest that the cage
with a scanning bow should be implemented, since it would be a long-lasting solution. It
only has limited operating costs and can be combined with an empty trailer of PostNord,
which is parked at the loading dock, so that the parcels can be stored directly inside. This
procedure would also speed up the pickup by PostNord as well as reduce the overall costs,
since the trailer could be taken right away. Other presented track-and-trace technologies
provide an improved accuracy but with higher overall costs, so that requirements of
PostNord would be unacknowledged. The standardized size of these shipping boxes
should also be maintained to simplify the stockpiling process and to ensure the build-up
of the shipping pallets so that damages during the transportation phase can be minimized.
The following model (figure 4) shows the initial process with the additional steps of the
proposed scanning bow. Business Process Modelling was used as the basis for this
visualization, so that the final process becomes tangible for Intersport. Therefore, the
researchers expanded the process of Intersport to visually demonstrate the changes for a
57
successful implementation and what practical implications this holds for the business
processes. After the consolidation of the shipments, they have been allocated to a specific
box number, so that the information is stored in the internal database of Intersport.
Additionally, the final shipping box is scanned with the automated bow, which transmits
the data directly to PostNord to successfully transfer the ownership of the parcel and
concomitant the responsibility. This additional process changes the server architecture
completely, since the system of Intersport is not only receiving status updates from
PostNord about the progress of the delivery, but also actively sends data after the
ownership was transferred. This further intensifies the relationship converting it into a
two-way communication, where both partners are receiving data from each counterpart.
In contrast, PostNord was the solely sender of delivery information in their previous
business relationship. Nevertheless, it is important that the flowback of information into
Astro is not neglected, so that internally the progress is documented.
Figure 4: BPM of the outbound logistics with a scanning bow
Source: Developed by the authors
To fully understand the visualization about the modified process, the standardized track-
and-trace process must be taken as the basis. The coded item moves to the end-customer
via several distribution points, where the information is updated. In the process of
Intersport, the information is updated once the number of the box is added to the shipment,
as well as once the shipment is detected at the handover point by the scanning bow. These
two events change the information stored in the database, which become distribution
58
points as defined by the model. Several other distribution points are passed until the
shipment reaches the final customer within the operation of PostNord, but since they are
internal within the clear responsibility of PostNord, they are not part of this empirical
study. Hence, only the two distribution points of Intersport are relevant for this thesis.
To conclude this paragraph, the second research question has to be taken into
consideration. Important factors about the implementation of an outbound track-and-trace
system for Intersport have been mentioned, so that it becomes clear what critical success
factors are existing to turn this project into a long-lasting well-designed solution. These
factors are resulting out of the literature review and have been further developed during
the empirical analysis. The interviews revealed critical insights into what aspects must be
taken care of by Intersport, so that the economic payoff of the investment is soon visible.
It is important to clearly differentiate between fixed and variable costs to make the
solutions comparable. Out of the three proposed solutions all of them would solve the
problem for Intersport, but the distinctive factor is represented by the process costs, in
which the scanning bow scores the highest.
5.3 Implementation recommendation for Intersport
In the following, the proposed solution of the scanning bow will be discussed in more
detail and the next steps for the implementation will be outlined. In general, it has to be
stated that the solution is only applicable for the Swedish branch of Intersport, serviced
by PostNord, since there might be different parameters for other countries and other postal
service provider. Nevertheless, a fully functioning scanning bow could be integrated into
the general tracking of parcels in an overall system, so that its application become wider.
Still, the solution is only applicable to the warehouse of Intersport at the current time and
additional factors have to be taken into consideration once the solution should be
implemented for companies with related problems, since these influencing factors differ
at each individual company. A useful next step would be to look into the practical
implementation within the warehouse of Intersport with the help of PostNord as well as
a logistical consulting company. The researchers thought about conducting additional
data gathering, but due to the outbreak of the Corona virus, it was no longer possible to
get access to the warehouse. The data from the first conducted interviews help to further
evaluate the practicability of the proposed system. Also, this is dependent on the gravity
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of the problem since the product type as well as the responsible distribution centre of
PostNord are important factors. With the help of the consultant as well as PostNord,
standard operating procedures can be developed, so that the security of the new system
can be established. PostNord must fully accept the practices in order to accept the future
data as proof of what has happened to the shipments. In a second step, negotiations with
PostNord about a possible price reduction for their services would have to be conducted.
With the updated procedures, PostNord would only have to pick up the preloaded trailer
at the warehouse of Intersport, so that the loading process as a service will no longer be
needed. Therefore, the price paid for the delivered parcels should be reduced, since the
prices are negotiated individually for each company depending on the service. The overall
benefit of increased customer satisfaction must be treated as an intangible factor since it
cannot be conveyed into direct economic figures. Once a parcel is lost, there is not only
the economic damage of the lost items, but also the processual one, since the ordered
goods don’t arrive at the store in time, so that the final customer is experiencing a delay.
In the case of click-and-collect orders, where the customer picks up the ordered shipment
inside a store, this is even more relevant. The resulting delay is directly visible for the
customer and therefore results in a bad purchase experience. With testing out the label in
the warehouse of Intersport, mistakes can easily be corrected, and an explicit defined
handover point of transition is introduced. The described “dark hole” between Intersport
and PostNord can consequently be closed. This enables the shops to raise their trust into
the supply chain of Intersport and the ordered goods being delivered in time. Overall, it
increases the reliability into the fulfilment to the stores. One remaining challenge is the
end of the conveyor belt, since the parcels are getting transported into the cage
automatically, so that they can get loaded into the trailer in a second step. When they
reach the end of the belt, they slide to the side, so that once several parcels are scanned,
an employee must start loading them into the empty trailer attached to the warehouse.
This could be a potential bottleneck of the operation, since not every employee might
have access to the cage, so that a backlog could occur. Therefore, a system should be
established about a responsible person in charge for the loading into the trailer, so that the
remaining picker can leave their finalized boxes onto the conveyor belt. The cage also
has to be big enough so that several boxes can be stacked above each other in case there
would be no empty trailer of PostNord attached to the warehouse. Nevertheless, the used-
up space for the cage should be minimized in order to maximize the usage of the
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warehouse space so that the overall operating costs remain low. The proposed solution
could also be combined with reusable boxes, equipped with an RFID chip, so that the
environmental impact of the transport to the store is minimized. The scanning bow could
still be used once RFID chips would be read out instead of scanning barcode labels.
Therefore, the system of the scanning bow can be transformed according to future
changes of PostNord regarding their internal shipping procedures. This guarantees a long-
lasting usability of the proposed system. Shipments to one store could be bundled in these
boxes and the data from the scanning bow about which articles have been put together is
sent to Astro for further transparency. Once a box would still go missing within the
delivery process, the lost articles can be easily detected, so that a new shipment can be
sent out. The use of reusable boxes has to be discussed with PostNord, since several
Swedish retailers already make use of it today, so that a standard operating procedure
most likely already exists. The establishment of such a reusable parcel system exceeds
this Master thesis and further research must be conducted about the topic. Besides that,
the proposed solution would solve the current gap for PostNord in an economic manner,
since no additional label would have to be attached, but an improvement in tracking of
the parcels can be achieved. Thus, the solution can be seen as an incremental change,
since the current procedures are not going to be changed substantially. This is also
adequate for the gravity of the problem, since the economic impact of the lost items is
limited, so that costly investments were unjustifiable. The researchers therefore highly
suggest additional plausibility checks by Intersport, followed by a collection of
implementation offers on the market. With these figures, a decision about whether the
investment is likely to be taken must be made by the management. The researchers would
take the investment, since it has little maintenance costs, would close the tracking gap,
and therefore increase the robustness of the supply chain as well as it limits the economic
risks between Intersport and PostNord. Due to the current crisis of COVID-19, this
investment might not be prioritized so that its implementation possibly must be postponed
to better economic circumstances, in which the money for this project could be budgeted.
Still, the time until the economy recovers, could be used to check the applicability in
practice before the project is started in order to overcome possible drawbacks. These
drawbacks could not be observed by the researchers, as no further access to the warehouse
was authorized. The solution of using handheld scanner is a workaround, since due to the
high handling and procedural costs it should not become a permanent solution.
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5.4 Proposed solution for analyzed cases
As already stated, Intersport has been the key company in creating this Master thesis.
Nevertheless, the interviewed companies should also profit from taking part of the data
collection. The insights about what is applicable for Intersport make it possible to
additional propose certain aspects of the solution to the retailers dealing with PostNord
in Sweden. In combination with the acknowledged factors during the literature review,
benefits for the related participating companies could be elaborated.
Gina Tricot already had the experience in their Danish branch with using a handheld
scanner, so that this empirical knowledge about how to establish precise handover points
can be used. Since a trailer of PostNord is attached to their warehouse, the metal fence
could be installed affordably because no additional storage space would be needed for the
parcels. Also, RFID chips within the shipments are expected to be future solutions, which
could be combined with a scanning bow in the long run. Therefore, installing a scanning
bow for barcodes today would help to close their track-and-trace gap, as well as it would
solve the high handling costs of the manual scan since it was previously done in Denmark.
In this sense, the solution suitable for Intersport would most likely also solve the existing
challenges for Gina Tricot, as the number of daily parcels is comparable. In the case of
Netonnet, tracking the parcels on their direct way with a conveyor belt into the
distribution centre of PostNord would not make any sense. Because no missing parcels
on this handover point have been reported, there is no current economic need for investing
in such a track-and-trace technology. This could possibly change in the future once they
or PostNord would move their current operation elsewhere. The solution for Intersport
might also be challenging to implement at the facility of Hemtex due to their operation
for multiple countries. Since not only the Swedish market is served by their warehouse, a
designated area for outbound logistics might be harder to implement. Additionally, their
sold goods are of lower value compared to Intersport, so that their willingness to invest
into closing the gap is limited. The handheld scanner could be used for bigger,
consolidated parcels, which would have a bigger economic impact once they would get
lost. The picking software could indicate, once the order has been compiled, if the parcel
needs an additional scan with the handheld of PostNord. These parcels would then be
placed into a small fenced storage area, where they would get picked up later by the
delivery driver of PostNord. This procedure could be evaluated after a certain time in
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order to decide if the lost items could have been reduced and how the first experiences
with the additional scan have been. The two cases of Stadium and Apotek can be merged
since both companies outsourced their warehouse operations to PostNord. Therefore, a
solution does not have to be implemented by the retailer, but by PostNord instead. This
could be related to the proposed solution of Intersport. Once the solution would have been
approved by other retailing partners, after a successful implementation at Intersport, it
could become the new operating standard. This could lead to an active use of the
technology by PostNord within the warehouses that they are responsible for. Hence, a
successful implementation at Intersport could be the start of a general change of outbound
procedures within the Swedish retailer industry.
With this, the third research question is tackled since challenges of the implementation
have been analysed. It becomes clear that solutions are dependent on local factors. Each
company has its unique challenges which must be solved for a successful implementation.
It also turns out that the companies interviewed could relate to the “black hole”. Only
Netonnet found a way to overcome this issue with proximity to the distribution centre.
Also, outsourcing the operation to PostNord directly is a solution in two cases but might
not be applicable to all Swedish retailing companies. The challenges are similar in its
nature for all participating companies but differed in their individual gravity. This is
related to all parties having to deal with PostNord as the external factor, but also with
additional internal factors that influence the business reality of these companies.
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6. Conclusion
______________________________________________________________________
This concluding chapter provides concluding remarks on answering the research
questions and fulfilling the purpose of the thesis.
______________________________________________________________________
This thesis aims to answer three research questions in order to fulfil the purpose of
evaluating the most important track-and-trace technologies in the field of outbound
logistics and how they can be effectively be implemented into a Swedish retailing
company, in order to overcome current challenges.
RQ1: What are current trends and techniques for track-and-trace in the supply chain
context with regard to outbound logistics?
Regarding the purpose of this thesis the current track-and-trace gap of Intersport in their
outbound logistics must be closed. To develop a suitable solution, it was necessary to
investigate which current track-and-trace technologies exist on the market in the field of
outbound logistics. This was achieved by an extensive study of the existing literature.
Outbound logistics represents the interface between internal processes in the warehouse
and external processes in the outside world. In terms of track-and-trace, this means that
both indoor and outdoor tracking technologies have to be considered. The literature
revealed that different technologies developed over time and differ in several factors such
as its usability, accuracy, and costs. Some technologies as the barcode system and GPS
are already long existing and are more widely used than other technologies. In contrast to
that, other emerging technologies as RFID are already established, but are still being
developed to increase market coverage and reduce the cost of usage. The literature has
shown that the usage of track-and-trace technologies depends on the individual
requirements and processes of the respective outbound logistics of a company. However,
no technologies were directly related to outbound logistics. The literature revealed that
different technologies are often combined in order to reach an efficient full coverage of
tracking and tracing the outbound processes.
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RQ2: Which factors have to be considered when implementing track and track-and-trace
technologies in the outbound logistics of Swedish retailer?
The literature as well as the conducted interviews have shown that there is no best practice
solution in order to overcome the track-and-trace problem of Intersport in their outbound
logistics. The implementation of track-and-trace technologies is highly depended on the
individual occurrences of a company. Several factors of the developed categories,
classified during the coding process, must be regarded in order to implement an efficient
technology that is suitable and covers the whole tracking and tracing of the outbound
logistics process. The main factor that must be considered is the layout of the warehouse
and the type of product. Once the product is lower in its value, the effort of the company
to invest into tracking this shipment is limited. Also, it is important if the shipped product
is sensitive regarding compliance issues, so that additional steps to ensure a safe shipment
have to be undertaken. Moreover, the internal IT capabilities and the current development
status of track-and-trace technologies in use and logistics technologies in general must be
considered. Furthermore, the IT capabilities of the used logistics service provider are
important because their processes are always connected to the outbound logistics. To
overcome individual challenges in the outbound processes of a company, the willingness
of the logistics service provider to engage in an efficient solution also must be considered.
Implementing a track-and-trace technology can also lead to a change of their workflow
processes or changes in their IT processes. To fully complete the list of factors, additional
company specific factors would have to get mentioned. It is also important to keep track
of these influencing factors since the pace of their change is rapidly increasing.
RQ3: How can track-and-trace technologies be effectively implemented into the
outbound logistics of a Swedish retailer in order to overcome individual challenges?
With the scanning bow the researchers developed a solution that covers the current track-
and-trace gap of Intersport in an efficient way, and is therefore low in related process
costs. It fits into the warehouse layout of Intersport in combination with limited process
interruptions for themselves as well as PostNord. It is a cost-efficient solution which does
not require increased IT changes for both sides since the scanning of the parcels only have
to be connected to the IT database of PostNord. The literature review as well as the
65
conducted interviews revealed that challenges are similar within the interviewed
companies but differed in gravity. This leads to the conclusion, that each company has
their unique set of challenges relevant for their operation. It is therefore of high
importance to look at each company as a unique example, where off-the-shelf solutions
are not the best fit. One important challenge to be looked at in detail is the economic
gravity of the problem. If the economic consequences of lost parcels are not high, a
reduced amount should be invested. In contrast, if the company is dealing with high-value
shipments, a higher investment might be justified. One overall challenge is to keep the
additional process costs as low as possible to realize the expected and calculated earnings.
It is therefore important to also develop an implementation plan, which sets milestones
for short and long-term goals. This is combined with the proposed calculation for the
break-even point, which provides clarity regarding future saving potentials. The
individual warehouse layout must be analyzed before a solution is proposed, since direct
line-of-sight and other related factors are important for a variety of solutions. The IT
capabilities must be adjusted before the implementation so that they do not become a
bottleneck of future operations. The responsibility over the system must be rooted within
the workforce, to ensure that it is used properly. The security measures to separate the
scanned shipments from the rest must be monitored regarding their functionality.
PostNord must be fully convinced about the arrangements, in order to give the collected
data, the needed trustworthiness. Therefore, this is the key challenge for the
implementation since the project cannot be completed otherwise.
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7. Discussion
______________________________________________________________________
This concluding chapter presents theoretical and practical implications as well as
limitations of this thesis and concludes with recommendations for further research.
______________________________________________________________________
7.1 Implications
7.1.1 Theoretical implications
The theoretical implications of this thesis deal with the variety of track-and-trace
technologies that are currently existing on the market in the field of outbound logistics as
well as how they differ based on their usability, accuracy and costs. Hence, it requires
continuous revision as discussed in the literature. The empirical findings of this thesis
provide further evidence for the necessity of continuous revision as the technologies are
constantly developing and process requirements in the outbound logistics are changing in
connection to the overall processes. The examined track-and-trace technologies provide
different advantages and disadvantages for track-and-trace solutions in the outbound
logistics of a company. However, they do not provide a best practice solution for
Intersport, because the individual process requirements have to be considered in order to
develop a suitable solution. The literature rarely combines the examined internal and
external factors with a track-and-trace technology when developing a solution in the
outbound logistics. Internal company factors are more often considered since the track-
and-trace system is implemented within the company. This study revealed that external
factors of the connected logistics service provider must be equally considered to increase
the efficiency and connectivity of the solution among the involved partners. Hence,
caution is necessary for researchers when developing a custom-made track-and-trace
solution for retailing companies to not draw faulty conclusions or an inefficient solution.
7.1.2 Practical implications
The individual process consideration of companies in the development of a track-and-
trace solution in the outbound logistics can be seen as the main practical implication. The
existing track-and-trace technologies offer various application possibilities, but no best
practice solution for the case of Intersport and the examined Swedish retailing companies.
For Intersport, a preferred solution could be identified, whereas in the other retail cases
67
the proposed solutions were less detailed due to less provided information from the
additional analysed companies and the focus on the case of Intersport. However, to
develop an efficient track-and-trace solution in the outbound logistics in general, several
internal and external factors must be considered. These factors differ among companies
and cannot be generalized. Retailing companies should not only consider the potential
benefits of a track-and-trace system, but rather critically evaluate the examined factors
when developing a track-and-trace solution. Additionally, it also stresses the importance
of continuously assessing the changing market environment. Companies must cope with
changes to adapt their track-and-trace processes to the varying requirements.
7.2 Limitations and future research gaps
Even though this thesis adheres to the defined methodology, it comes along with a few
limitations. First, the impact of the worldwide epidemic COVID-19 hast to be pointed
out. Since the beginning of 2020, the world is facing the spread of a virus and many
countries shut down their borders as well as economical activities. Thus, many companies
changed their whole work processes and are mainly concerned with handling the
upcoming challenges. Even though the crisis management in Sweden is handled
differently in comparison to other countries, the authors noticed that companies are less
willed to engage in interviews for this thesis. Moreover, the authors were also limited in
the selection of potential interview partners, who also contracted PostNord as their
logistics service provider, in order to understand whether they are affected by the track-
and-trace gap in their outbound logistics. Hence, the number of cases in this thesis is
limited to eight interviews, since it was not possible to find more appropriate interview
partners that fulfil the research requirements. Second, this thesis was written in
cooperation with Intersport Sweden, so the theoretical outcome cannot be directly applied
to companies who also use PostNord as their preferred supplier in general. As already
pointed out, the individual requirements and processes of each company must be
considered. Third, the development of possible solutions for Intersport were tied to low
investment costs since the economic damage of the lost shipments is limited. Thus, the
researchers developed cost efficient solutions that fulfil the individual process
requirements of Intersport. Nevertheless, other possible solutions, which require a higher
investment and might also be suitable were not considered in this case.
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Following the limitations, further research can be conducted in regard to a closer view on
PostNord. Since the existing track-and-trace gap is a general problem that affects all their
clients, research could be conducted to develop a solution that could be applied to all of
them. This would lead to more standardized processes and increase the overall customer
service of PostNord. Developing individual solutions for every company always comes
along with individual processes and changes of the workflow on both sides. Moreover,
track-and-trace technologies are constantly developing, so potential new efficient
solutions could be investigated in the future to develop more automated processes for
tracking and tracing shipments in the outbound logistics. Connected to this, research can
be conducted on creating an automated interface with PostNord in order to develop more
efficient workflow processes and data interchanges. With the implementation of the
scanning bow, the data exchange between Intersport and PostNord would be simplified,
so that further process developments could take place in the future. In times of
digitalization, real time data tracking is of high importance and databases should be more
connected in order to prevent interruptions and failures in the processes. Therefore, future
research could be conducted about real-time-tracking possibilities of parcels throughout
the delivery process once event-tracking was overall established.
69
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Appendix 1 GDPR Thesis Study Consent Form
Required by European Union General Data Protection Regulation 2016/679 The GDPR consent form should always be accompanied by a Participant
Information Sheet [see JIBS’ guidelines at the end of this template]
GDPR Consent for ”Potential analysis of track-and-trace systems in the outbound logistics of a Swedish retailer”
Please tick the appropriate boxes Yes No
Taking part in the study
I consent to JIBS processing my personal data in accordance with current data protection
legislation and the data delivered.
I consent voluntarily to be a participant in this study and understand that I can refuse to
answer questions and I can withdraw from the study at any time, without having to give a
reason.
My signature below indicates that I choose to take part in the thesis study and consent to
JIBS treating my personal data in accordance with current data protection legislation and
the data delivered.
_______________________ ____________________ ___________ Name of participant [IN CAPITALS] Signature Date
Thesis contact details for further information
Nils-Ole Bolte - (+49) 1721514025 - [email protected]
Daniel Goll - (+49) 15164830302 - [email protected]
This is a template to assist thesis students in the design of their GDPR consent form.
You may adapt this template to the requirements of your particular project, using the notes and
suggestions provided. the below information should always be included in any GDPR consent form on
paper and as text in a web survey when personal data is processed within the framework of thesis work
at JIBS. When using a web survey, add a box to the survey and a hyperlink to the survey, followed by
this text: I choose to take part in the thesis study and consent to JIBS processing my personal data in
accordance with current data protection legislation and the data delivered.
78
Participant Information Sheet template
Invitation paragraph
Dear participant, we are two students from the University of Jönköping and currently writing our Master thesis in the subject of logistics. Our topic is related to track-and-trace technologies in the outbound process of a Swedish sporting goods retailer and their connection to PostNord. The interview would take 30min max and could be conducted via Skype in times of Corona. Before you decide whether or not to take part, it is important for you to understand why this research is being done and what it will involve. We will explain the purpose and structure of the interview in the following. Purpose of this study: The purpose of our study is to evaluate the most important track-and-trace technologies in the field of outbound logistics and how they can be effectively be implemented into a Swedish retailing company, in order to overcome current challenges. Our cooperation partner is currently facing a track-and-trace problem in their outbound logistics process. We are looking to close the tracking gap of shipments between them leaving the warehouse and the first scanning at the sorting centre of PostNord. According to PostNord this is a general problem which affects all their clients. The interview questionnaire aims to investigate how you are dealing with your outbound logistics processes and if you are experiencing difficulties in the handover of shipments between you and PostNord. Furthermore, we want to investigate which factors and parameters you consider when implementing track-and-trace technologies in your outbound logistics. This study is written between January and May 2020. However, the gathering of empirical data is done in March and April. The methodology of this thesis is following a qualitative approach including a multiple case study in order to gather the required insights into the research topic. 'It is entirely up to you to decide whether or not to take part. If you decide to do so, you will be given this information sheet to keep and will be asked to give your consent.’ All the information that we collect about you during the course of the research will be kept strictly confidential. You will not be able to be identified in any ensuing reports or publications.’ Under GDPR you have the following rights over your personal data:
• The right to be informed. You must be informed if your personal data is being used. • The right of access. You can ask for a copy of your data by making a ‘subject access
request’. • The right to rectification. You can ask for your data held to be corrected. • The right to erasure. You can ask for your data to be deleted. • The right to restrict processing. You can limit the way an organisation uses your
personal data if you are concerned about the accuracy of the data or how it is being used. • The right to data portability. You have the right to get your personal data from an
organisation in a way that is accessible and machine-readable. You also have the right to ask an organisation to transfer your data to another organisation.
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• The right to object. You have the right to object to the use of your personal data in some circumstances. You have an absolute right to object to an organisation using your data for direct marketing.
• How your data is processed using automated decision making and profiling. You have the right not to be subject to a decision that is based solely on automated processing if the decision affects your legal rights or other equally important matters; to understand the reasons behind decisions made about you by automated processing and the possible consequences of the decisions, and to object to profiling in certain situations, including for direct marketing purposes.
You should also know that you may contact the data protection officer if you are unhappy
about the way your data or your participation in this study are being treated at [email protected] Thank you for reading this information sheet and for considering whether to take part
in this research study.
Contact details for further information: Thesis supervisor: Karin Susanne Hertz E-mail: [email protected]
Thesis student: Nils-Ole Bolte E-mail: [email protected]
Thesis student: Daniel Christopher Goll E-mail: [email protected]
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Appendix 2 Coding process example
„Clearly depends
on the type of
product“
„The investment
depends on the
value of damage”
„The size of the
parcels matter”
„Depends on our
IT-capabilities”
„It should be related
to our currently used technologies”
„Overall depends
on the structure of
our warehouse”
Product related factors
Technology related factors
Layout related factors
Internal company factors
„Our parcels get
picked-up by milk
run”
„Our parcels get
picked-up by milk
run”
Type of transportation External factors of logistics
service provider
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Appendix 3 Interview questionnaire with Swedish retailer
Section 1 – Experience with track-and-trace problems
1. Have you experienced track-and-trace gaps in the flow of your outbound logistics?
1.1 If yes: Is this topic from special relevance to you?
2. Did you miss parcels in the transition between you and PostNord in the past?
2.1 If yes: How big is the economic impact of these missing packages?
3. Have you done specific actions to overcome these issues?
4. Did you think about possible solutions about how to overcome it?
Section 2 – Relationship to PostNord
5. Is PostNord handling all your outbound logistics at your warehouse?
5.1 If no: Does the other logistics service provider have the same tracking problem?
5.2 If no: Does your other logistics service provider offer a track-and-trace solution?
6. Is PostNord compensating you for lost items?
7. How much is the current relationship to PostNord based on trust?
Section 3 – Outbound logistics processes
8. Do all your outbound shipments (parcels) have the same size?
9. How many outbound shipments do you have on average per day?
10. Are your products picked up from your warehouse by milk run or direct
transportation?
11. Did you encounter any fraud activities in the past with missing items/products?
11.1 If yes: Do you think track-and-trace could have prevented them from happening?
12. Do you use track-and-trace technologies in your outbound logistics?
13. How is the current process once an item is missing?
Section 4 – Possible track-and-trace solutions
14. Would you be willing to invest into track-and-trace technologies?
14.1 If yes: How much roughly?
14.2 If yes: Would you be willing to cooperate with other companies to develop a
common solution?
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14.3 If no: Would you pay a premium if PostNord would solve this issue?
15: Have you contacted PostNord about possible solutions to overcome the tracking
gap?
15.1 If yes: Did they propose a solution?
15.2 If no: Do you think you can handle this issue by yourself better?
16. Would a loading manifest of the outbound PostNord truck help your procedures?
17. Could you have a designated spot for outbound parcels for PostNord, which could
be separated from the rest of the operations?
18. Do you think an automated scanning bow in combination with barcodes on each
parcel could be a solution?
18.1 If no: What do you think could be a solution?
19. Does the tracking solution has to be fully automatized or can it be integrated into
a manual process step done by an employee?
20. Could there be a solution where several shipments can be tracked together in
order to simplify the tracking process due to less tracking devices?
21. What are factors and parameters that have to be considered when implementing a
track-and-trace technology?
22. Do you have any further comments?
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Appendix 4 Interview questionnaire with logistics service provider PostNord
Section 1 – Current situation
1. Which possibilities do you offer to track-and-trace goods?
2. How do you guarantee the safety of the parcels on the way to the sorting centre?
3. Do other clients besides Intersport are also affected by this track-and-trace gap?
3.1 If yes: Did they already find a solution to solve this problem?
4. How many parcels get lost in between the outbound logistics and your sorting
centre?
5. How do you usually cover the tracking of parcels from the pick-up to the sorting
centre?
Section 2 – Solutions
6. To what extend would you be prepared to accommodate Intersport in terms of
processes and take over scanning activities?
7. Would you be willing to use e.g. a QR Scanner App for documenting the
movement of whole package carts?
8. Would a loading manifest help your internal procedures?
9. What could the best possible solution for PostNord?
10. What are factors that have to be considered when implementing a track-and-trace
technology?
11. Do you have any further comments?