Developing a new framework for value added indicators enabled by RFID data in the fashion and apparel sector

The aim of this paper is to develop a novel framework of Value Added Indicators (VAIs), based on RFID data, that can be used specifically in the fashion and apparel sector. We use the acronym VAIs, instead of the more common Key Performance Indicators (KPIs) already used to monitor all operational parameters, because of the intrinsic goal of our key metrics, that is to increase the value of the fashion and apparel supply chain by using RFID technology. After a preliminary literature review phase, aimed at addressing Business Intelligence literature as well as sets of KPIs available for different industries and different supply chain areas, we developed a framework that illustrate how to leverage KPIs to generate value. Then, we integrated the results of the literature review with new VAIs based on end users voice: we set up two panels of experts, both from different industries and from the academia, to validate the framework and integrate it with additional indicator sets relevant for the end users. The study has produced a set of 60 different VAIs that use, or might use, RFID technology to produce, monitor and increase the overall value of the fashion and apparel supply chain. These VAIs are organised in a structured framework, built and validated by more than 10 experts from the field. The results of the paper are promising both for researchers and practitioners. The first, in fact, could use this list of VAIs to set benchmarks for different market segments of the fashion and apparel retail sector. Practitioners, on the other hand, could use the results of this study to evaluate which use case of RFID could fit and, also, which VAI could be handy for their company.