Implementing advanced
information technology enhances the effectiveness and efficiency of supply chains.
Enterprise Resource Planning (ERP),
Electronic Data Interchange (EDI), Supply Chain Planning (SCP)
and now RFID are all technologies that are helping supply chain partners to integrate their operations and strategies to lower the total system costs and to achieve a high customer service level. Large retailers see the potential of RFID and claim it will also benefit their suppliers in the long term. Suppliers, however, are more reluctant to invest in this emerging technology.
Viewing RFID as ‘stages of integration’ is useful towards aligning technical and business objectives that are consistent with an organization’s willingness to take risks.
A ‘stages of integration’ approach also provides an overall architecture to assist in the development of a robust RFID
system.