Impact of Radio Frequency Identification (RFID) Technology on Supply Chain Efficiency: An Extensive Study

Wireless technologies such as Radio Frequency Identification (RFID) and Global Position System (GPS) play important role as value added services in communication systems and mobile commerce these days. The aim of Supply Chain Management is to produce, distribute, logistics and deliver goods and equipment in right location, right time, right amount to satisfy costumers, with minimum time and cost waste. So implementing techniques of radio frequency identification (RFID) that reduce project time and cost, and improve productivity and performance is very important. The purpose of this study is to explore the benefits and liabilities of the use of this technology in supply chain operations and its benefits is centered on goals relative to the optimization of logistics activities; specifically related to inventory management, bullwhip effect and replenishment policies. Besides, some approaches to evaluate the benefits of RFID in supply chain along with a brief analysis of return-on-investment (ROI) to RFID implementation in supply chain operations are identified and discussed.