RFID Technology and Impacts on Supply Chain Management Systems

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. Radio Frequency Identification (RFID) is a technology offering a solution. RFID can be used to automate and streamline identification processes at decreased costs. 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. 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. This study deals with RFID technology introduction and impacts on supply chain management systems 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.