The impact of RFID technology on the formulation of logistics strategy

RFID is a rapidly emerging technology that can be applied to enhance supply chain management. Previous researchers have sought maximum potential applicability of RFID in various modules of the supply chain, such as inventory management, asset management, warehouse operation, manufacturing processes and retail marketing. Automated RFID systems have been examined for achieving a high level of information transparency, inventory visibility, product availability, and system responsiveness and agility, however, discussion on the potential advantages and the effects of RFID technology on the decision making of logistics operations and on the formulation of logistics strategies is limited. This article focuses on investigating the impact of RFID adoption on logistics business strategy and operation. A strategy analysis is developed by employing the resource-based view (RBV) which examines the link between RFID systems and logistics strategy. This article contributes to filling the gap in the research into RFID as a strategic resource and provides insight into the strategic value of RFID in managing the supply chain and its associated logistics.