Challenges associated with RFID tag implementations in supply chains

Radio-Frequency Identification (RFID) tags are gaining widespread popularity throughout the supply chain from raw material acquisition, manufacturing, transportation, warehousing, retailing to the ultimate consumers. A majority of extant literature in this area explore the beneficial aspects of RFID tags such as their batch readability, resistance to harsh environmental conditions, information storage and processing capability, among others. Given the recent explosion of interest in RFID tag incorporation in supply chains, literature in the area has not yet comprehensively identified nor addressed associated challenges and impediments to successful implementations. We purport to fill this gap and to raise awareness by identifying and discussing critical issues such as ownership transfer, privacy/security, computing bottleneck, read error, and cost-benefit issues such as opportunity cost, risk of obsolescence, information sharing, and inter-operability standards. European Journal of Information Systems (2009) 18, 526-533. doi:10.1057/ejis.2009.41; published online 10 November 2009