This paper presents the pros and cons of using radio-frequency identification (RFID) in supply chain management (SCM). While RFID has a greater number of benefits than its predecessor, the bar code, it currently comes at a price that many businesses still consider prohibitive. On the one hand, RFID is advantageous because it does not require line-of-sight scanning, it acts to reduce labor levels, enhances visibility, and improves inventory management. On the other hand, RFID is presently a costly solution, lacking standardization, it has a small number of suppliers developing end-to-end solutions, suffers from some adverse deployment issues, and is clouded by privacy concerns. Irrespective of these factors, the ultimate aim of RFID in SCM is to see the establishment of item-level tracking which should act to revolutionize SCM practices, introducing another level of efficiencies never before seen. Disciplines Physical Sciences and Mathematics Publication DetailsThis article was published as:

This paper explores the current barriers to adoption of radio-frequency identification (RFID) for supply chain applications, and documents the perceptions of key players in the Australian RFID market. The paper contains data collected from interviews of both technology providers (e.g. RFID vendors), and prospective business customer (i.e. a large retailer). Data collected is analyzed using qualitative content analysis, and supported with figures and tables. The findings show that the three main barriers to RFID adoption are: the cost of RFID implementation (especially ongoing tag costs), lack of customer awareness and education, and a technology which is only at the beginning of its lifecycle curve in terms of supply chain deployment. Prospective customers are also finding it difficult to justify a business case solely on RFID. Enter the idea of convergence between the long standing barcode and RFID technology. This paper argues that both technologies will coexist in parallel, each with its specific function and set of advantages. Abstract-This paper explores the current barriers to adoption of radio-frequency identification (RFID) for supply chain applications, and documents the perceptions of key players in the Australian RFID market. The paper contains data collected from interviews of both technology providers (e.g. RFID vendors), and prospective business customer (i.e. a large retailer). Data collected is analyzed using qualitative content analysis, and supported with figures and tables. The findings show that the three main barriers to RFID adoption are: the cost of RFID implementation (especially ongoing tag costs), lack of customer awareness and education, and a technology which is only at the beginning of its lifecycle curve in terms of supply chain deployment. Prospective customers are also finding it difficult to justify a business case solely on RFID. Enter the idea of convergence between the long standing barcode and RFID technology. This paper argues that both technologies will co-exist in parallel, each with its specific function and set of advantages.