Challenges with the introduction of radio-frequency identification systems into a manufacturer's supply chain – a pilot study

Abstract

As radio-frequency identification (RFID) implementation becomes more widespread it is important for managers to consider if this technology is right for their businesses. This study examines challenges of RFID implementation along with a cost-benefit analysis of a pharmaceuticals manufacturer's supply chain. Research was gathered from a variety of sources on the topic of RFID to provide an in-depth analysis of challenges and benefits found with RFID systems. Furthermore, the study reviews the real case applications of the RFID technology in healthcare and customer services. Many of the challenges with RFID stem from improper planning of the synchronisation of the supply chain and the integration of RFID technology into facilities and software systems. Customer privacy, excess information and obsolete technology are also of concern to companies considering RFID. Benefits such as increased information sharing, product visibility and real-time information help to offset these challenges. In addition, pharmaceuticals manufacturer real case application showed cost savings from reducing labour and decreased opportunities for lost product counteract the expense to implement an RFID system. This study will be of value to managers who are attempting to implement RFID technology in their companies. It is intended that readers, both academics and practitioners, will be able to identify possible challenges and mitigate them as the RFID technology is put into practice.