RFID technology introduction and impacts on supply chain management systems

Abstract

Today’s dynamic and competitive business environment puts an ever increasing pressure on companies to innovate, redesign processes, and leverage the potential of partnerships along the supply chain.

One of the technologies offering a solution is Radio Frequency Identification (RFID). RFID can be used to automate and thus streamline identification processes,which means that more checkpoints along the supply chain can be established at decreased costs. But additionally, the technology can provide further benefits which make it superior to the currently widespread automatic dentification (Auto-ID)technology of the barcode. However, as RFID is only a way to collect the data at the lowest level, the technology must be integrated with the supply chain management systems of the companies. Also, the various information systems along the supply chain must be integrated to allow for exchange and in order to give a meaning to the data.

Even though RFID technology has initially been developed decades ago, the use of RFID in large-scale supply chain operations has until now been prohibited due to the relatively high costs compared to other Auto-ID solutions. Recent studies on the integration issues of the technology reveal that there are still several technical, as well as rather political, barriers to be solved before widespread RFID deployment in supply chain operations can take place.

Therefore, this dissertation deals with RFID technology introduction and impacts on supply chain management systems in order to give an insight into the current issues and status of the technology. It examines five RFID projects carried out by companies operating in different industries. The presentation and discussion of the results will help to better understand what RFID can deliver, what deficiencies companies reveal and where its application in supply chain operations is sensible and likely to occur.