ADOPTION OF RFID TECHNOLOGY IN SUPPLY CHAIN

Abstract

Today in the era of competition, time and money have vital role in the business. Companies are searching for new ways to get the competitive advantages. The aim of this research is to analyze the wastes in supply chain of service and manufacturing industries in Pakistan, to identify the need of RFID adoption and to elucidate the challenges to adopt RFID. Supply Chain is essential part of the business for any company either it is in manufacturing or service industry. A company can easily attain its benchmark and can gain the competitive advantages by optimizing its supply chain. But wastes in supply chain, whether these are internal or external, are the major cause to decrease its efficiency in terms of money and time or one of them. The successful companies are finding the ways to optimize the supply chain by decreasing the wastes like process inefficiencies, errors in ordering, lack of communications and the activities that do not add the value in the process or the product. Toyota production System and Lean production System are the endeavors to achieve the same objectives. RFID (Radio Frequency Identification) is an emerging technology which is being popular in the domain of supply chain with the passage of time. It has the potential to do the miracles in the field by diminishing the wastes. RFID can share the information in time to the related agents and can simplify the logistic processes. Simplified logistic system makes the integration of supply chain easier and saves the money and the time.