Empirical evidence of RFID impacts on supply chain performance
Purpose ‐ The purpose of this paper is to investigate the actual benefits of radio frequency identification (RFID) on supply chain performance through the empirical evidence. Design/methodology/approach ‐ The research reviews and classifies
the existing quantitative empirical evidence of RFID on supply chain performance. The evidence is classified by process (operational or managerial) and for each process by effect (automational, informational, and transformational). Findings ‐ The empirical evidence
shows that the major effects from the implementation of RFID are automational effects on operational processes followed by informational effects on managerial processes. The RFID implementation has not reached transformational level on either operational or managerial processes. RFID has an
automational effect on operational processes through inventory control and efficiency improvements. An informational effect for managerial processes is observed for improved decision quality, production control and the effectiveness of retail sales and promotions coordination. In addition,
a three-stage model is proposed to explain the effects of RFID on the supply chain. Research limitations/implications ‐ Limitations of this research include the use of secondary sources and the lack of consistency in performance measure definitions. Future research
could focus on detailed case studies that investigate cross-functional applications across the organization and the supply chain. Practical implications ‐ For managers, the empirical evidence presented can help them identify implementation areas where RFID can have
the greatest impact. The data can be used to build the business case for RFID and therefore better estimate ROI and the payback period. Originality/value ‐ This research fills a void in the literature by providing practitioners and researchers with a better understanding
of the quantitative benefits of RFID in the supply chain.
Keywords: Identification; Performance measurement (quality); Radio frequencies; Supply chain management
Document Type: Research Article
Publication date: 13 November 2009
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