THE PRACTICE AND CHALLENGES IN IMPLEMENTING GPS AND RFID TECHNOLOGIES: THE CASE OF CONTAINER AND CARGO HANDLING IN ERCA

Abstract

GPS and RFID systems are products of the very latest advancements in the vehicle tracking and fleet management technology. GPS tracks the movement of vehicles, relaying information about the speed, fuel consumption, and relative location of the vehicles in terms of latitude and longitude while RFID uses radio frequency waves to transmit information about the safety of goods in transit. The Revenues and Customs Authority of Ethiopia has launched this electronic cargo tracking system on the road between Addis Ababa and Djibouti Port. This study was carried out to assess the practice and challenges in implementation GPS and RFID technologies: the case of container and cargo handling in ERCA in the country's logistic sector on 56 participants divided into two groups of samples namely, vehicles who have implemented the tracking system, or treatment (implemented) group, and those who have not, or the control group. Control (non-implemented) groups are used to avoid the problem of intervening variables (variables that are affecting the output of the research other than independent variables). The researcher used propensity score matching analysis. This study demonstrated that the use of RFID and GPS tracking technology is strongly associated with lower fuel and maintenance cost, shorter trip duration and a higher turnover of trips. The study also showed that the tracking technology has eliminated unsanctioned trips and illegal night driving. It has also been shown that it has prevented drivers from transporting unauthorized goods since the system monitors that the vehicles are not carrying any weight above that is indicated on the manifest.