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Chapter 4: RFID Is Not a Solution Waitin... > Improvement of Supply Chain Effectiv...

Improvement of Supply Chain Effectiveness and Efficiency Through RFID

RFID technology can significantly improve business performance. We have conducted a number of research studies into the uses and benefits of RFID in business organizations. In one study2 of 122 operations professionals in U.S. manufacturing companies, we found that RFID utilization can directly improve operational performance. However, in another study3 of the benefits of RFID technology utilization on supply chain performance, utilizing information provided by 155 respondents in both manufacturing and service organizations in the United States, we surprisingly found that the direct effect of RFID utilization on supply chain performance, while nonsignificant, was negative. The study showed that RFID utilization had a positive impact on supply chain information sharing, which in turn had a positive effect on supply chain performance. Upon reflection, these results really make sense. When RFID is implemented solely due to a mandate by a customer or a desire to have the “latest technology” without a good idea of how to leverage that technology, it becomes just an additional cost of doing bu....Figure 4.1


  

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