An empirical study of RFID implementation in the warehousing industry

Abstract

Purpose

RFID mandates by large retailers and various government agencies made it a requirement for some large organizations to implement RFID technology, while other medium to small organizations are still evaluating the potential costs and benefits of such adoption. This paper examines whether empirical data support the hype on RFID.

Design/methodology/approach

A 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.

Findings

A high percentage of respondents are not currently considering RFID technology. Companies implementing or considering RFID plan to invest a significant amount of money into this technology over the next three years. But a number of concerns still exist and skepticism remains about the potential for RFID to deliver cost savings or a positive ROI in the near future.

Research limitations/implications

This study was limited to a relatively small sample of WERC members. This study should be replicated in the future, once RFID technology adoption matures.

Practical implications

For RFID to be widely adopted there must be a better ROI either through cost reduction or improved business processes.

Original/value

RFID is not hype and is here to stay. Few companies in the study expected a positive ROI from RFID technology. Their experiences and opinions should be of interest to those researching or considering RFID adoption.

Citation

Vijayaraman, B.S. and Osyk, B.A. (2006), "An empirical study of RFID implementation in the warehousing industry", The International Journal of Logistics Management, Vol. 17 No. 1, pp. 6-20. https://doi.org/10.1108/09574090610663400