Radio frequency identification (RFID) is a term used for any device that can be
sensed at a distance by radio frequencies with few problems of obstruction. The
origins of the term lie in the invention of tags that reflect or retransmit a radiofrequency
signal. According to a recent article by Forrester Research, the minimal
‘Slap and Ship’ approach to RFID compliance will cost an individual company
between $2 million and $20 million. Because retailers like Wal-Mart plan to share
with their suppliers all the RFID-generated data points (from when a case/pallet
enters their distribution centre until it leaves their stockroom), suppliers will
eventually be able to use this data as a powerful forecasting tool. RFID is an
enabling technology that can potentially facilitate a real-time, end-to-end supply
chain visibility system. Suppliers who integrate full-scale RFID systems will
realize efficiencies in time, material movement, inventory planning, shipping and
warehousing both internally and externally. This paper provides a brief overview of
the RFID technology, mandates by retailers and federal agencies, advances towards
global standardization and typical consumer level RFID applications, and
discusses RFID initiatives taken by some of the global leaders in apparel, consumer
goods and fresh produce industries.