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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

RFID Adoption: Issues and Challenges

RFID Adoption: Issues and Challenges
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Author(s): Eric W.T. Ngai (The Hong Kong Polytechnic University, China)and Angappa Gunasekaran (University of Massachusetts – Dartmouth, USA)
Copyright: 2007
Pages: 3
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch406
ISBN13: 9781599049298
EISBN13: 9781466665378


Radio Frequency Identification (RFID) is an emerging technology that has been increasingly used in logistics and supply chain management in recent years, particularly in the US and Europe. World’s largest retailers are increasingly requiring their suppliers to be RFID compliant. Although RFID is not a new technology, the term RFID has been popular for the past couple of years. We are seeing an increasing interest in this technology by companies (Prater and Grazier, 2005). RFID tools can identify, categorize, and manage the flow of goods and information throughout a supply chain (Ngai et al., 2005). Rapid development of RFID combined with a major push coming from mandatory RFID tagging decree by Wal-Mart and the U.S. Department of Defense and others like European companies Metro AG and Tesco, has caused companies to take a hard look at what RFID can do for them and whether they should give further consideration to adopting the technology. RFID has been around for decades. It is one such technology that we can embed into objects to track location, monitor security, and record the status of events or even environmental conditions (Stanford, 2003). RFID systems have emerged as new forms of inter-organizational systems (IOS) and are used to improve the efficiency of the processes in a supply chain. Because of their capability for use in real-time identification and tracking over long distances, some believe that RFID systems will fundamentally change the way companies do business (Smith and Konsynski, 2003). The following are some of the current issues and challenges facing the RFID technology adoption in industrial applications.

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