RFID Becomes Fashionable in the Supply Chain: The Case of Kaufhof and Gerry Weber

The paper reports on the results of a five-month project utilizing Radio Frequency Identification (RFID) along a fashion retailing supply chain. The supply chain included the fashion manufacturer Gerry Weber and department store retailer Kaufhof. The project identified numerous issues that should be addressed in a successful implementation of RFID including the technical choices and design of the readers and transponders; the likely process changes; the varying costs of the transponders and systems; potential concerns regarding consumer privacy; and the implications for cost reduction, revenue enhancement and overall organizational performance. Project outcomes suggest a positive business case for adopting RFID for all members of the supply chain. Implications for practice are discussed.