RFID and its benefits: a multiple case analysis

Abstract

Purpose

The purpose of this paper is to identify the key benefits of the radio frequency identification (RFID) on various industries and supply chains (SCs) all around the world. In this research, author has looked into different case studies and identified a list of benefits that RFID has brought to various industries. The clear benefits of RFID are: automation; transparency; asset management; velocity; insight; traceability; security; reliability; and capability. To understand RF, fundamental key points are identified and reviewed. Some applications of RFID in SCs are briefly reviewed and ten cases of RFID are discussed.

Design/methodology/approach

The paper identifies key benefits of RFID using case studies approach. For this purpose, ten cases are reviewed from the entire industry, and then key benefits of RFID are determined.

Findings

To make business systems functional and successfully operational, manufacturers can use RFID solutions to reduce operating costs through decreasing the labor costs, claims, and returns. This will help them to increase the operating income. They also can reduce working capital by enabling reductions in inventory and lowering the inventory write‐off from the return goods and those items that are un‐saleable at the end. It is the collection of such strategies that can bring higher level of profitability and productivity to the business.

Originality/value

Owing to the fact that a better management of production system is related to the full understanding of the technologies implemented and the system under consideration, the paper provides some background to the RFID technology and its benefits for various industries.

Citation

Zare Mehrjerdi, Y. (2011), "RFID and its benefits: a multiple case analysis", Assembly Automation, Vol. 31 No. 3, pp. 251-262. https://doi.org/10.1108/01445151111150596