Impact of Rfid on Supply Chain Management

Introduction

Radio Frequency Identification (RFID) was initially developed for retail business purposes. However, since then it has developed potential for use in supply chain and warehouse management. MIT conducted the first research in this field Their study concentrated on both hardware and functional requirements of the new invention. The study also covered possible impacts on the logistics and operation inside the vicinity of a facility. This was discovered only when scholars such as Zelbst and Sower started thinking about low cost, high capacity tags and RFID in relation to supply chain management. It was then that they were able to develop a version of RFID that finally addressed an inter organization operation. The related invention of EPC design which also made its first adoption in the retail market with famous examples such as Wall-Mart integration. Showed a real potential of the technology providing significant impacts on the performance and operation of the supply chain, by reducing the stock out and over stock (Zelbst & Sower 2012, pg45). Most importantly, it increased collaboration among supply chain partners. This helps in offering quality services to the final customer.

The need to have a reliable assessment on the return of a business ventures using RFID technology has become critical and exceedingly important (Schuster, Allen, & Brock 2007, pg345). In literatures, a number of models have been developed to explain the feasibility studies concerning the technology. Despite the importance of the issue, the estimation of benefits is still fairly accurate qualitatively compared to the costs of the technology. The matter relates to both positive characteristics of the RFID and the absence of a framework for their evaluation. This study carried out up to date to examine the qualitative impacts of RFID both on functions of a single firm and an entire supply chain. Shows that some of the research concentrates only on specific supply chains but ignore to generalize their research findings

Research question and design

This study aims at presenting a universal framework for the measurement the benefits of RFID within the coverage of a supply chain. How RFID supports supply chain management in translating each operative impact of RFID in to a business return. The main idea at the base of the methodology employed in this study is easy to understand and straightforward. In predicting the qualitative impact of the RFID technology to a supply chain efficiency through the development of an RFID oriented performance measurement system (Myerson 2013, pg568). It also gives a detailed approach in giving the finding and results of the study.

Findings

(1) This stage includes the analysis of existing business approaches in a firm and the need for new systems within the firm. In almost all cases it is important before