The cost and process of implementing RFID technology to manage and control returnable transport items

Abstract

The purpose of this paper is to explore and describe the costs and process of implementing radio frequency identification (RFID) technology to manage and control the rotation of returnable transport items. Owing to the novelty of using RFID in logistics and supply chain management, in-depth case studies were conducted at two global firms in the retail industry to investigate how and why organisations implement and assess RFID technology. These case studies provide insights into how RFID benefits have been attainable in practice, and indicate that the cost of introducing RFID technology is not generally a barrier. As a result, this paper proposes an inductively derived stage model of the RFID implementation process. In this, implications for management are identified and discussed to guide managers in the process of implementing RFID technology.

Keywords:

• implementation
• radio frequency identification
• case study
• logistics
• packaging

Acknowledgements

This research was financially supported by VINNOVA through the Next Generation Innovative Logistics Centre (NGIL). The author is grateful to IKEA of Sweden and Arla Foods for their support and willingness to participate in this research. The author would also like to thank the anonymous reviewers for their insightful comments on this paper.