Quantifying RFID-enabled Traceability For The Food Industry: A Case Study

With the competitive differentiators of supply chain operation’s efficiency, food differentiation with credence attributes, quality enhancement and food safety, the concept of “traceability as strategy and mandatory initiative” has replaced that of “traceability as a cost of a business or as a voluntary responsibility”. This implies that the introduction of a traceability system should be perceived and positioned as a catalyst for better business practices in terms of legal compliance, safety and quality assurance, risk prevention, efficient recalls/withdrawals and consumer’s trust. However, despite these benefits, a traceability system is also investment worthy. Hence, the value of investment in a traceability system constitutes a matter of considerable concern and debate for both practitioners and academics alike; meaning that it is essential to recognize the extent to which the potential benefits gained by a traceability system outweigh the value of investment in such an initiative. As a result, this paper presents a cost-benefit evaluation applied in a frozen food company regarding the pilot deployment of a RFID-based traceability system.