Impact of Radio Frequency Identification on the Efficiency of Supply Chain - Research Paper Example

The paper "Impact of Radio Frequency Identification on the Efficiency of Supply Chain" is a perfect example of a business research paper. The study aims to investigate the liabilities and advantages of using RFID technology in supply chain operation management, in addition to the advantages and challenges of implementing the technology. A descriptive research methodology is used in the research. The study is based hugely on secondary data sources. Here, the researcher explored published literature on the application and implementation of RFID technology comprehensively in the areas of supply chain management, transportations, inventory management. From the literature review, it is established that the most attractive feature of the FFID is its basic feature of operating without the line-of-sight while reading the RFID tags. Such a capability substantially helps automate many supply chain management, which reduces labour, reduces wastes, improves safety and lowers levels of inventory. As established, although it is clear that RFID technology offers new potential to improve supply chain management, on account of the rapid technological advancements, the challenges faced in implementing the RFID systems, such as lack of technological knowledge and high cost of installing new IT infrastructure, imply that it is the anticipated RFID benefits may not necessarily be realisable. It is recommended that before implementing the RFID system, companies need to pragmatically assess the risks, viability, as well as the impact of the technology on the supply chain management. RFID projects need to be prioritised and monitored closely to ensure they function as anticipated. To reduce the costs associated with procuring additional software and hardware, organisations should consider adopting cloud-based solutions integrated with RFID-based monitoring and sensing systems.

• Introduction

Today’s wireless technologies like Radio Frequency Identification (RFID) and International Position System (GPS) offer a critical role as important provisions in mobile systems and communication systems these days (Reyes, 2011).