Applications of RFID in Supply Chains

In this chapter we first give an introduction to radio-frequency identification (RFID) technology. We discuss capabilities and limitations of this technology in a supply chain setting. We then present several current applications of this technology to supply chains to demonstrate best practices and important implementation considerations. Subsequently, we discuss several issues that may hinder a wide-spread RFID implementation in supply chains. We close by deriving several consequences for a successful implementation of RFID, and we give guidance on how a company might best benefit from this technology. 2 G.M. Gaukler and R.W. Seifert 1.1 An Overview of RFID Technology At its core, RFID is a contactless interrogation method for identification of objects. Besides the applications in supply chain operations that this chapter is going to focus on, some of the everyday uses of this technology are in ID cards, sports equipment, windshield-mounted toll tags, and gasoline quick-purchase tokens. RFID has also begun to be used in keychain auto anti-theft devices and toys (most notably, Hasbro Star Wars figures), and even on paper tickets for the 2006 Soccer World Cup in Germany (Odland 2004; Want 2004).