Skip to main content

Radio Frequency Identification (RFID) and Supply Chain Management

  • Living reference work entry
  • First Online:
The Palgrave Handbook of Supply Chain Management

Abstract

Supply chain management environments have always been information-intense for collecting and processing data to determine its capabilities, productivities, delivery performance, and overall competitiveness. This chapter is targeted to the academic and business community and aims to inform and enlighten managers about the use of RFID in the supply chain. The work presented in this chapter is a collection of the past two decades that was sparked by the “big bang” of RFID. The recent RFID research overlaps with the Industry 4.0 technologies in the supply chain. We are at the gates of another technological explosion that will revolutionize the way we manage supply chains. RFID and the convergence of those Industry 4.0 technologies will soon change the landscape of supply chain management. Early RFID Academic interest in RFID generated a fast-growing body of literature. General research topics include RFID technology and applications, benefits, and business value. General research also suggests managerial guidelines and examines implementation challenges. Academic studies of RFID systems are dominated by case studies of big retailers and the path RFID-tagged products follow from distribution center to store shelf. The cases discussed grocery industry use, retail supply chains, and retailer RFID benefits and challenges. Other RFID applications for improving efficiency and effectiveness focused on retail product misplacement, shrinkage control, pull-based replenishment, vendor-managed inventory, and mapping supply networks. The chapter concludes with current concerns regarding RFID in the supply chain, research needs, and a look ahead to where RFID in the supply chain appears to be heading.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

References

  • Adner, R., & Levinthal, D. A. (2004a). What is not a real option: Considering boundaries for the application of real options to business strategy. Academy of Management Review, 29(1), 74–85.

    Article  Google Scholar 

  • Adner, R., & Levinthal, D. A. (2004b). Real options and real tradeoffs. Academy of Management Review, 29(1), 120–126.

    Google Scholar 

  • Angeles, R. (2005). RFID technologies: Supply-chain applications and implementation issues. Information Systems Management., 22, 51–65.

    Article  Google Scholar 

  • Angelou, G. N., & Economides, A. A. (2005). Flexible ICT investments analysis using real options. International Journal of Technology, Policy and Management, 5(2), 146–166.

    Article  Google Scholar 

  • Ashton, K. (2009). That “Internet of things” Thing: In the real world things matter more than ideas. RFID Journal, 22(7), 97–114.

    Google Scholar 

  • Balasubramanian, P., Kulatilaka, N., & Storck, J. (2000). Managing information technology investments using a real-options approach. Journal of Strategic Information Systems, 9(1), 39–62.

    Article  Google Scholar 

  • Bear, Stearns Co. Inc. (2003). Supply-chain technology: Track(ing) to the future. Equity Research Report. www.bearstearns.com/bscportal/pdfs/research/supplychain/technology_rfid.pdf

    Google Scholar 

  • Benaroch, M., & Kauffman, R. J. (1999). A case for using real options pricing analysis to evaluate information technology project investments. Information Systems Research, 10(1), 70–86.

    Article  Google Scholar 

  • Bengtsson, J. (2001). Manufacturing flexibility and real options: A review. International Journal of Production Economics, 74(1–3), 213–224.

    Article  Google Scholar 

  • Bengtsson, J., & Olhager, J. (2002). Valuation of product-mix flexibility using real options. International Journal of Production Economics, 78(1), 13–28.

    Article  Google Scholar 

  • Bi, H. H., & Lin, D. K. J. (2009). RFID-enabled discovery of supply networks. IEEE Transactions on Engineering Management, 56(1), 129–141.

    Article  Google Scholar 

  • Bottani, E., & Rizzi, A. (2008). Economical assessment of the impact of RFID technology and EPC system on the fast-moving consumer goods supply chain. International Journal of Production Economics, 112, 548–569.

    Article  Google Scholar 

  • Bowman, E. H., & Moskowitz, G. T. (2001). Real options analysis and strategic decision making. Organization Science, 12(6), 772–777.

    Article  Google Scholar 

  • Brach, M. A. (2003). Real options in practice. Wiley.

    Google Scholar 

  • Brealey, R. A., Myers, S. C., & Allen, F. (2008). Brealey, Myers, and Allen on real options. Journal of Applied Corporate Finance, 20(4), 58–71.

    Article  Google Scholar 

  • Campbell, J. A. (2002). Real options analysis of the timing of IS investment decisions. Information & Management, 39(5), 337–344.

    Article  Google Scholar 

  • Cannon, A., Reyes, P. M., Frazier, G., & Prater, E. (2008). RFID in the contemporary supply chain: Multiple perspectives on the benefits and risks. International Journal of Operations & Production Management, 28(5), 433–454.

    Article  Google Scholar 

  • Casella, G., Bigliardi, B., & Bottani, E. (2022). The evolution of RFID technology in the logistics field: A review. Procedia Computer Science, 200, 1582–1592.

    Article  Google Scholar 

  • Chao, C-C., Yang, J-M., & Jen, W-Y. (2007). Determining technology trends and forecasts of RFID by historical review and bibliometric analysis from 1991 to 2005. Technovation, 27, 268–279.

    Google Scholar 

  • Chen, J. C., Cheng, C.-H., & Huang, P. (2013). Supply chain management with lean production and RFID application: A case study. Expert Systems with Applications, 40, 3389–3397.

    Article  Google Scholar 

  • Chow, H. K. H., Choy, K. L., Lee, W. B., & Lau, K. C. (2006). Design of a RFID case-based resource management system for warehouse operations. Expert Systems with Applications, 30(4), 561–576.

    Article  Google Scholar 

  • de Kok, A. G., van Donselaar, K. H., & van Woensel, T. (2008). A break-even analysis of RFID technology for inventory sensitive to shrinkage. International Journal of Production Economics, 112(2), 521–531.

    Article  Google Scholar 

  • Delen, D., Hardgrave, B.V., & Sharda, R. (2007). RFID for better supply-chain management through enhanced information visibility. Production and Operations Management, 16(5), 613–624.

    Google Scholar 

  • Devaraj, S., & Kohli, R. (2002). The IT payoff: Measuring the business value of information technology investments. Upper Saddle River, NJ.

    Google Scholar 

  • Fichman, R. G. (2004). Real options and IT platform adoption: Implications for theory and practice. Information Systems Research, 15(2), 132–154.

    Article  Google Scholar 

  • Fichman, R. G., Keil, M., & Tiwana, A. (2005). Beyond valuation: “Options thinking” in IT project management. California Management Review, 47(2), 74–96.

    Article  Google Scholar 

  • Gale, T., Rajamani, D., Reyes, P. M., & Sriskandarajah, C. (2010). The impact of RFID on supply chain performance. Technology, Operations and Management, 2(1), 3–13.

    Google Scholar 

  • Gaukler, G. M., Seifert, R. W., & Hausman, W. H. (2007). Item-level RFID in the retailer supply chain. Production and Operations Management, 16(1), 65–76.

    Article  Google Scholar 

  • Gessner, G. H., Volonino, L., & Fish, L. A. (2007). One-up, one-back ERM in the food supply chain. Information Systems Management, 24(3), 213–222.

    Article  Google Scholar 

  • Gu, Q. (2016). The value of advance supply information in retail competition: A simulation study. Journal of Supply Chain and Operations Management, 14(1), 85–105.

    Google Scholar 

  • Gu, Q., Visich, J. K., Li, K., & Wang, Z. (2017). Exploiting timely demand information in determining production lot-sizing: An exploratory study. International Journal of Production Research, 55(16), 4531–4543.

    Article  Google Scholar 

  • Hardgrave, B., Aloysius, J., Goyal, S., & Spencer, J. (2008a). Does RFID improve inventory accuracy? A preliminary analysis. Information Technology Research Institute, Sam M. Walton College of Business, University of Arkansas, working paper ITRI-WP107-0311. Available at http://www.itri.uark.edu

  • Hardgrave, B., Langford, S., Waller, M., & Miller, R. (2008b). Measuring the impact of RFID on out of stocks at Wal-Mart. MIS Quarterly Executive, 7(4), 181–192.

    Google Scholar 

  • Jones, P., Clarke-Hill, C., Shears, P., Comfort, D., & Hillier, D. (2004). Radio frequency identification in the UK: Opportunities and challenges. International Journal of Retail & Distribution Management, 32(3), 164–171.

    Article  Google Scholar 

  • Kärkkäinen, M. (2003). Increasing efficiency in the supply chain for short shelf life goods using RFID tagging. International Journal of Retail & Distribution Management, 31(10), 529–536.

    Article  Google Scholar 

  • Kärkkäinen, M., & Holmström, J. (2002). Wireless product identification: Enabler for handling efficiency, customization and information sharing. Supply Chain Management: An International Journal, 7(4), 242–252.

    Article  Google Scholar 

  • Kodukula, P., & Papudesu, C. (2006). Project valuation using real options. J. Ross Publishing.

    Google Scholar 

  • Kogut, B., & Kulatilaka, N. (2001). Capabilities as real options. Organization Science, 12(6), 744–758.

    Article  Google Scholar 

  • Lacka, E., Chan, H. K., & Wang, X. (2020). Technological advancements and B2B international trade: A bibliometric analysis and review of industrial marketing research. Industrial Marketing Management, 88, 1–11.

    Article  Google Scholar 

  • Langer, N., Forman, C., Kekre, S., & Scheller-Wolf, A. (2007). Assessing the impact of RFID on return center logistics. Interfaces, 37(6), 501–514.

    Article  Google Scholar 

  • Lee, H. L., & Özer, Ö. (2007). Unlocking the value of RFID. Production and Operations Management, 16(1), 40–64.

    Article  Google Scholar 

  • Li, S., & Visich, J. K. (2006). Radio frequency identification: supply chain impact and implementation challenges. International Journal of Integrated Supply Management, 2(4), 407–424.

    Google Scholar 

  • Loebbecke, C. (2007). Piloting RFID along the supply chain: A case analysis. Electronic Markets, 17(1), 29–37.

    Article  Google Scholar 

  • Mara, C. (1987). An introduction to bar codes, scanne4rs, and application. In Bar coding principles & applications. A revised edition of the Symbology ’82 Seminar Proceedings with selected articles from P&IM Review.

    Google Scholar 

  • McGrath, R. G., & MacMillan, I. C. (2000). Assessing technology projects using real options reasoning. Research Technology Management, 43(4), 35–49.

    Article  Google Scholar 

  • Mooney, J. G., Gurbaxani, V., & Kraemer, K. L. (1996). A process oriented framework for assessing the business value of information technologies. The DATA BASE for Advances in Information Systems, 27(2), 68–81.

    Article  Google Scholar 

  • Mun, J. (2006). Real options analysis: Tools and techniques for valuing strategic investments and decisions. Wiley.

    Google Scholar 

  • Ngai, E., Moon, K., Riggins, F., & Yi, C. (2008). RFID research: an academic literature review (1995-2005) and future research directions. International Journal of Production Economics, 112, 510–520.

    Google Scholar 

  • Ovezmyradov, B., & Kurata, H. (2022). Omnichannel fulfillment and item-level RFID tracking in fashion retailing. Computers & Industrial Engineering, 168, 108108. https://doi.org/10.1016/j.cie.2002.108108

    Article  Google Scholar 

  • Paul, T., Islam, N., Mondal, S., & Rakshit, S. (2022). RFID-integrated blockchain-driven circular supply chain management: A system architecture for B2B tea industry. Industrial Marketing Management, 101, 238–257.

    Article  Google Scholar 

  • Prater, E., Frazier, G. V., & Reyes, P. M. (2005). Future impact of RFID on e-supply chains in grocery retailing. Supply Chain Management: An International Journal, 10(2), 134–142.

    Article  Google Scholar 

  • Quirk, R. E., & Borrello, S. J. (2005). RFID: rapid deployment and regulatory challenges. Venable LLP White Paper.

    Google Scholar 

  • Radko, J., & Schumacher, A. (2004). Electronic product code: RFID drives the next revolution in adaptive retail supply chain execution. Global Exchange Services White Paper.

    Google Scholar 

  • Raman, A., DeHoratius, N., & Zeynep, T. (2001). Execution: The missing link in retail operations. California Management Review, 43(3), 136–152.

    Article  Google Scholar 

  • Rekik, Y., Sahin, E., & Dallery, Y. (2008). Analysis of the impact of the RFID technology on reducing product misplacement errors at retail stores. International Journal of Production Economics, 112, 264–278.

    Google Scholar 

  • Reyik, Y., & Sahin, E. (2012). Exploring inventory systems sensitive to shrinkage — Analysis of a periodic review inventory under service level constraint. International Journal of Production Research, 50(13), 3529–3546.

    Article  Google Scholar 

  • Reyes, P. M., & Jaska, P. (2006). A research agenda for RFID integrated supply chain management studies. International Journal of Global Logistics & Supply Chain Management, 1(2), 98–103.

    Google Scholar 

  • Reyes, P. M., & Jaska, P. (2007). Is RFID right for your organization or application? Management Research News, 30(8), 570–580.

    Article  Google Scholar 

  • Reyes, P. M., & Frazier, G. V. (2007). Radio frequency identification: Past, present and future business applications. International Journal of Integrated Supply Management, 3(2), 125–134.

    Article  Google Scholar 

  • Reyes, P. M., Frazier, G., Prater, E., Cannon, A., & Reyes, P. M. (2007). RFID: The state of the union between promise and practice. International Journal of Integrated Supply Management, 3(2), 192–206.

    Article  Google Scholar 

  • Reyes, P. M. (2011). RFID in the supply chain. McGraw-Hill.

    Google Scholar 

  • Reyes, P. M., Li, S., & Visich, J. K. (2012). Accessing antecedents and outcomes of RFID implementation in health care. International Journal of Production Economics, 136, 137–150.

    Article  Google Scholar 

  • Reyes, P. M., Li, S., & Visich, J. K., (2016). Determinants of RFID adoption stage and perceived benefits. European Journal of Operational Research, 254(3), 801–812.

    Google Scholar 

  • Reyes, P. M., Visich, J. K., & Jaska, P. (2020). Managing the dynamics of new technologies in the global supply chain. IEEE Engineering Management Review, 48(1), 156–162.

    Article  Google Scholar 

  • Reyes, P. M., Visich, J., Jaska, P., & Roethlein, C. J. (2021). Inventory replenishment policies for grocery supply chains using RFID to improve the frontier performance. Journal of Supply Chain and Operations Management, 19(1).

    Google Scholar 

  • Riemenschneider, C., Hardgrave, B., & Armstrong, D. (2007). Is there a business case for RFID? Information Technology Research Institute, Sam M. Walton College of Business, University of Arkansas, working paper ITRI-WP091-0507. Available at http://www.itri.uark.edu

  • Roberti, M. (2003). RFID: The cost of being smart. CIO Insight, 1(30).

    Google Scholar 

  • Rutner, S., Waller, M. A., & Mentzer, J. T. (2004). A practical look at RFID. Supply Chain Management Review., 8, 36–41.

    Google Scholar 

  • Shockley, R. L. (2007). An applied course in real options valuation. Mason, OH.

    Google Scholar 

  • Småros, J., & Holmsröm, J. (2000). Viewpoint: Reaching the consumer through e-grocery VMI. International Journal of Retail & Distribution Management, 28, 55–61.

    Article  Google Scholar 

  • Småros, J., Holmsröm, J., & Kamarainen, V. (2000). New service opportunities in the e-grocery business. International Journal of Logistics Management., 11, 61–73.

    Google Scholar 

  • Srivastava, B. (2004). Radio frequency ID technology: The next revolution in SCM. Business Horizons, 47, 60–68.

    Article  Google Scholar 

  • Suresh, S., & Chakaravarthi, G. (2022). RFID technology and its diverse applications: A brief explosion with proposed Machine Learning approach. Measurement, 195, 10.1016j.measurement.2022.111197.

    Article  Google Scholar 

  • Szmerekovsky, J. G., & Zhang, J. (2008). Coordination and adoption of item-level RFID with vendor managed inventory. International Journal of Production Economics, 114(1), 388–398.

    Article  Google Scholar 

  • Tajima, M. (2007). Strategic value of RFID in supply chain management. Journal of Purchasing and Supply Management, 13(4), 261–273.

    Google Scholar 

  • Tallon, P. P., Kauffman, R. J., Lucas, H. C., Whinston, A. B., & Zhu, K. (2002). Using real options analysis for evaluating uncertain investments in information technology: Insights from the ICIS 2001 debate. Communications of the Association for Information Systems, 9(1), 136–167.

    Google Scholar 

  • Tan, W. C., & Sidhu, M. S. (2022). Review of RFID and IoT integration in supply chain management. Operations Research Perspectives., 9, 100229. https://doi.org/10.1016/j.orp.2022.100229

    Article  Google Scholar 

  • Tiwana, A., Keil, M., & Fichman, R. G. (2006). Information systems project continuation in escalation situations: A real options model. Decision Sciences, 37(3), 357–391.

    Article  Google Scholar 

  • Tiwana, A., Wang, J., Keil, M., & Ahluwalia, P. (2007). The bounded rationality bias in managerial valuation of real options: Theory and evidence from IT projects. Decision Sciences, 38(1), 157–181.

    Article  Google Scholar 

  • Teresko, J. (2003). Winning the wireless. Industry Week. www.industryweek.com/archive.aspx

    Google Scholar 

  • Trigeorgis, L. (1996). Real options: Managerial flexibility and strategy in resource allocation. The MIT Press.

    Google Scholar 

  • Twist, D. C. (2005). The impact of radio frequency identification on supply chain facilities. Journal of Facility Management, 3(3), 226–239.

    Article  Google Scholar 

  • Visich, J. K., Li, S., Khummawala, B., & Reyes, P. M. (2009). Empirical evidence of RFID impacts on supply chain performance. International Journal of Operations & Production Management, 29(12), 1290–1315.

    Article  Google Scholar 

  • Wang, S.-J., Liu, S.-F., & Wang, W. L. (2008). The simulated impact of RFID-enabled supply chain on pull-based inventory replenishment in TFT-LCD industry. International Journal of Production Economics, 112(2), 570–586.

    Article  Google Scholar 

  • Zelbest, P. J., Green, K. W., Sower, V. E., & Reyes, P. M. (2012). Impact of RFID on manufacturing effectiveness and efficiency. International Journal of Operations & Production Management, 32(3), 329–350.

    Article  Google Scholar 

Download references

Acknowledgments

I would also like to acknowledge the Sloan Foundation and the Sloan Industry Studies that funded and supported my early years in my RFID in the supply chain studies.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Pedro M. Reyes .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive licence to Springer Nature Switzerland AG

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Reyes, P.M. (2023). Radio Frequency Identification (RFID) and Supply Chain Management. In: Sarkis, J. (eds) The Palgrave Handbook of Supply Chain Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-89822-9_109-1

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-89822-9_109-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-89822-9

  • Online ISBN: 978-3-030-89822-9

  • eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics