RFID adoption and implementation in warehousing

Abstract

PurposeLarge retailers and various government agencies have backed off from their earlier radio frequency identification (RFID) mandates. The RFID industry has also matured. The purpose of this paper is to examine RFID implementation in warehousing, utilizing empirical data to determine how the warehousing industry is changing with respect to RFID implementation.Design/methodology/approachAn online survey was sent to Warehousing Education and Research Council (WERC) members at manufacturing firms, third party warehousing/logistics providers, wholesaler/distributors, and retail firms, to determine whether they are implementing RFID technology and what challenges they are facing.FindingsCompared to an earlier study, it was found that fewer organizations are considering the technology. The respondents in general were less optimistic and concerns still exist on return on investment (ROI), potential benefits, integration, and other issues. Some items are of less concern, including cost, standards, and security, perhaps reflecting the maturity of the industry.Research limitations/implicationsThis study was limited to a relatively small sample of WERC members but should continue to be replicated in the future as RFID technology adoption matures.Practical implicationsFor RFID to be widely adopted by manufacturers and other firms upstream in the supply chain, they must be convinced of a better ROI, through cost reduction or improved business processes.Originality/valueRFID is not hype and continues to mature. Few companies expected a positive ROI from the technology. These experiences and opinions should be of interest to those researching or considering RFID adoption.