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The purpose of this paper is to outline the research work of managing returnable assets such as pallets by radio frequency identification (RFID) methods on a national scale.

The project is an extension of an earlier project which tracks pallets and cartons through a fast moving consumer goods (FMCG) supply chain. This extension project investigates how RFID information can be applied for integrating business processes. The project team developed a national business information network with electronic product code (EPC) compliance devices and systems. To implement an effective pallet management business process, the project team carried out detailed process modelling study of the effect of RFID processes and measured the improvement in performance and efficiency.

The key to success in the extension project is the adoption of EPC compliance technology that enables efficient communication of business data across platforms and companies. The project found that there is an average 18 per cent improvement in system efficiency should an EPC compliance technology be adopted for supporting paperless proof of delivery. There are also additional administrative and unquantifiable savings in support systems and services.

The research is related to the FMCG industry sector. The business processes in this sector can vary significantly. The project is conducted under a controlled business environment on the condition that the changes would not affect main business activities of the partners. The system efficiency improvement and savings estimated from the project findings should be taken as reference figures only.

The combination of process modelling approach and validation of system performance data by simulation in this paper provide a basis for generalisation of the methodology in similar national scale research studies. The estimated data could be used as reference for preliminary feasibility studies of similar EPC applications.

In 2003, Walmart issued a sensational RFId mandate for its top 100 suppliers, including a detailed deployment plan under compelling deadlines. After seven years, very little of that mandate has become a consolidated industry practice. This paper aims to try to offer a complete and thorough explanation of the reasons behind this fact, providing a sound strategic view of what is happening and could happen in the future.

The study is based on a twofold methodological approach: first, it relies on an in‐depth literature review covering the assessment of RFId applications in the fast moving consumer goods (FMCG) industry; second, it leverages on a five‐year research program carried out by the RFId Solution Center of Politecnico di Milano in cooperation with GS1 Italy, which provided both quantitative data (used to develop and feed an analytical profitability assessment model) and qualitative knowledge to understand the “soft” implications of RFId adoption in the industry.

Despite the great potential of RFId technology, there are still some significant barriers preventing its diffusion. Case‐level tagging is required to enable a substantial redesign of the supply chain, but profit‐sharing and reading reliability should be carefully considered to ensure economic and technological feasibility. The comparison with the fashion industry evidences some key success factors of RFId; while some of them are industry‐specific, others can be replicated in the FMCG as well, but further efforts are still needed.

This is one of the first attempts to provide a comprehensive analysis of RFId potential in the FMCG supply chain, taking into account all the major factors involved. Moreover, the quantitative results illustrated in the paper could be a valuable support to companies in defining their RFId strategies.