Exploring radio frequency identification technology and its impact on business systems

Abstract

PurposeTo provide practitioners of management a sense of the importance of strategically leveraging the current and historic development of radio frequency identification (RFID) in order to find inexpensive applications of radio frequency‐based (RF) technologies in many areas.Design/methodology/approachA review of the applied literature on RFID, as well as from practical experience, resulted in a basic model of viewpoint to understand the nature of the emergent RF‐based industry.FindingsWal‐Mart and other cost sensitive and value chain progressive companies' usage of RFID‐based technology should revolutionize the method that companies' track inventory. However, some of the disadvantages include costs, training, product label and supplies, and privacy infringement. One asset to companies like Wal‐Mart is pallet tracking because it improves on‐time inventory delivery. This helps Wal‐Mart since they rely on just‐in‐time ordering.Research limitations/implicationsRFID is currently used in many industries such as transportation and distribution, manufacturing and processing, and security and law enforcement. The advantages RFID gives to companies are the following: enhanced record management, customer behavior patterns, and accurate inventory tracking.Practical implicationsThis paper describes RFID and its implementation process in an academic manner, some disadvantages of RFID, and examples of how the technology can improve customer relationship management (CRM) are discussed. Originality/value – This form of identification can be used in large stores like Wal‐Mart to receive real time information. By implementing RFID, companies will create a fully integrated supply chain system. Traditionally, many supply chain management (SCM) research has simply viewed RF‐based technology as a technological innovation, not a transformational event as this paper presents.