Despite these potential benefits, there are challenges and obstacles with the deployment of a RFID-enabled system in the global supply chain.
The paper outlines the major RFID issues faced by supply chain management.
The benefit of using RFID in the warehouse management is realized and promoted.
It is within this context that GS1 and the ECR Community Shrinkage and On-shelf Availability Group commissioned a piece of research to better understand about how this technology is now being used and what lessons can be drawn from its development, its implementation, and its impact on retail businesses.
Based upon the detailed experiences of ten companies that have invested in RFID, the study set out to answer the following questions: This research adopted a case-study methodology with data being collected via requests for various types of quantitative data relating to the use and performance of RFID, together with primarily face-to-face interviews with company representatives from the following companies: Collectively, these companies have total sales in the region of €94 billion (~6 billion) a year and purchase at least 1.87 billion RFID tags a year, equivalent to the use of about sixty tags per second.
Since the term radio frequency identification (RFID) came into common usage within the retail environment, around the end of the 1990s, it has in many respects been an idea driven more by hope and hype than practical realization.
For retailers, it promised a world where supply chains would become fully transparent, with all products identifiable in real time, bringing an end to oversupply and out-of-stocks-the ultimate optimization tool, allowing retailers to truly deliver “just in time” supply chains tailored precisely to the needs of their customers.
In addition, RFID offered other “game-changing” benefits, such as the end of traditional checkouts and associated queuing for the consumer—products would automatically “checkout” as they left the store with the consumer’s credit card being billed accordingly. )Within the realm of loss prevention, the RFID “revolution” offered much promise, with shop theft becoming a thing of the past.
Thieves would be automatically identified as they tried to leave the store without paying.