Despite these potential benefits, there are challenges and obstacles with the deployment of a RFID-enabled system in the global supply chain.
The paper outlines the major RFID issues faced by supply chain management.
Similarly, problems such as returns fraud would be eliminated as the previous ambiguity around whether a particular item had actually been purchased would no longer exist—the product would “tell” the retailer its current status (bought or not bought).
Back in the early 2000s, it seemed RFID was going to totally transform the retail world.
Value stream mapping was used to draw current state mapping and future state mapping (with lean management and RFID) with material flow, information flow, and time flow.
Preliminary experiments showed that the average reading rate of electric forklift and hydraulic cart are 99.3 and 99.1 % by fixed ultra-high frequency RFID readers with antenna installed at the receiving/shipping dock and passive tags mounted on box/pallet.
This can be seen particularly in parts of retailing that do not have a concentration of products largely made up of metals and viscous fluids, which have traditionally proved highly challenging for RFID to cope with.
Retailers focused on apparel and footwear in particular have begun to use this technology to help them manage their supply chains more efficiently, using RFID’s capacity to bring transparency and ease of audit into the retail space.
Since the term radio frequency identification (RFID) came into common usage within the retail environment, around the end of the 1990s, it has in many respects been an idea driven more by hope and hype than practical realization.
For retailers, it promised a world where supply chains would become fully transparent, with all products identifiable in real time, bringing an end to oversupply and out-of-stocks-the ultimate optimization tool, allowing retailers to truly deliver “just in time” supply chains tailored precisely to the needs of their customers.