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Radio frequency identification (RFID) is an enabling technology that promises to create value through greater visibility in supply chain networks, higher product velocity, more efficient inventory management, reduced labor cost, and reduced human error. However, it is still not clear if these objectives can be fully achieved due to high tag costs and uncertain return-of-investment (ROI). We introduce the key components and concepts of RFID applications and identify key issues when implementing RFID in supply chain networks. We suggest an RFID integration model that allows for degrees of integration breadth.
Date of Publication: Second Quarter 2007