Supply Chain Management Review

Supply Chain Management Review

May 1, 2007

Looking for the Bang from the RFID Buck; There’s general agreement that Radio Frequency Identification (RFID) technology is a potential boon to supply chain management. What’s not as clear is who benefits and how. In the retail space, the authors conclude that the benefits, costs, and risks of RFID vary depending on where you are in the supply chain. But in all cases, you need to strive to get the biggest bang for your buck.

BYLINE: By Sunil Chopra and ManMohan S. Sodhi.

Sunil Chopra is the IBM Distinguished Professor of Operations Management at the Kellogg School of Management, Northwestern University. ManMohan S. Sodhi is Professor in Operations Management at Cass Business School, City University, London.

SECTION: FEATURES; Pg. 34

LENGTH: 5115 words

Radio Frequency Identification (RFID) is an attractive technology for the supply chain because its system of electronically tagging items, cases, or pallets can help deliver “the right product at the right place at the right time.” Major organizations like Wal-Mart, the U.S. Department of Defense, Target, and Best Buy have required large suppliers to apply RFID tags to cases and pallets to improve supply chain performance. According to research firm Frost & Sullivan, retailers spent $400 million on RFID in 2004, a figure that may exceed $4 billion per year by 2011.¹

But RFID also presents a conundrum to retailers and their suppliers: Despite the perceived benefits, the business case for this technology is not clear. In 2005, Spyglass Consulting Group found that many healthcare organizations were having difficulty justifying the investment in RFID given cheaper existing solutions like barcode technology.² And McKinsey consultants suggest that “businesses should convert their excitement about the potential of RFID-as with any technology-into a solid business case.”³

This conundrum has resulted in many suppliers taking a wait-and-see attitude or implementing a partial deployment of RFID (often called a “slap-and-ship” process-slapping on RFID tags just before shipping to appease retailer mandates). Even retailers have hesitated to implement the technology fully, despite the danger of diluting benefits by implementing partial RFID on top of existing bar-code technologies. Earlier this year, even Wal-Mart backed off from the extent of RFID implementation it had first envisioned.

To shed light on this conundrum and to consider the merits of a business case for this technology, we analyze the

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benefits of RFID in terms of process improvements by considering supply chain operations in two parts: (1) those up to the retail store and (2) those inside the retail store.

In the first part, we consider the benefits that may result from tracking truckloads, pallets, cases, or even individual items across the supply chain from the manufacturer to the retail store. We use the Supply Chain Operations-Reference (SCOR) model of processes from the suppliers’ plants to the retailer’s stores, and consider pallet-level, case-level, and item-level RFID implementation for our analysis.

In the second part, we consider the benefits of RFID when tracking individual items in the retail store. For both, we consider the IT-related costs and risks of RFID implementation to understand where benefits are high and costs are low: that would be where we get the biggest bang for the RFID investment buck.

Our analysis indicates that benefits, costs, and risks vary across the supply chain and depend on the level of RFID implemented. At one end of the supply chain, a supplier implementing RFID at the pallet level in its plants or distribution centers will find low benefits but also low costs and risks. At the other end, the retailer implementing RFID at the individual item level in the retail store will find high benefits but also high risks and costs. In neither case would we likely find the benefits relative to the costs and risks to be attractive. However, in between, the retailer storing, handling, and moving a large variety of cases into retail stores will find high benefits and low costs and risks by implementing RFID at the case level for these backend processes. The business case for RFID is clearest at this intermediate point in the supply chain.

In our analysis, we have considered only the processes that are directly part of supply chain operations. There are supporting processes such as security, employee monitoring, and tracking of assets that we do not focus on. RFID technology can be quite valuable for these processes.

Benefits up to the Retail Store

Consider the potential benefits of RFID in the supply chain up to the retail store, but not including the operations inside the store itself. As we get closer to the retail end of the supply chain, products become increasingly differentiated and unique, resulting in more SKUs. They also are more likely to be packed and handled in smaller quantities (cases or units vs. pallets). Finally, products become more valuable and thus more vulnerable to counterfeiting and shrinkage as the approach the retail stage.

We expect benefits from RFID to increase as we move downstream in the supply chain. (Exhibit 1 shows a typical retail supply chain). To study the benefits in detail, we use the Supply Chain Council’s SCOR classification of backend processes in the supply chain up to the retail store:

* Plan: Processes that balance aggregate demand and supply to develop a course of action that best meets sourcing, production, and delivery requirements.

* Source: Processes that procure goods and services.

* Make: Processes that transform product to a finished state.

* Deliver: Processes such as order management, transportation management, and distribution management that provide finished goods and services to meet demand.

* Return: Processes associated with product returns at any stage of the supply chain.

These processes are supported by “enable” processes, including data collection and supporting automation.

If a company is to invest in RFID, it must see meaningful improvements in at least some metrics related to these SCOR processes. These metrics include those related to time (processing, storage, or transit) and shrinkage (yield, shrinkage,

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technology is a potential boon to supply chain management. What’s not as clear is who benefits and how. In the retail space, the authors conclude that the benefits, costs, and risks of RFID vary depending on where you are in the supply

or value reduction through discounts and returns).

Following is our analysis of the impact of RFID on each of the SCOR process categories at different stages of a supply chain up to the retail store.

Plan

From a planning perspective, the primary advantage of RFID over existing bar code technology is the elimination of some existing hurdles in sharing data across supply chain partners. This sharing of data can help facilitate CPFR (collaborative planning, forecasting, and replenishment). The benefits, however, are likely to be marginal relative to the existing barcode technology and will primarily accrue from a case-level implementation. Effective CPFR can benefit suppliers, manufacturers, carriers and retailers in a supply chain. The major hurdles to effective data sharing, however, are not technology related. Thus, RFID by itself is unlikely to have a significant enough impact to justify implementation.

Source

RFID is likely to improve the receiving and storage processes within the source category through increased efficiencies and improved visibility. Yet some types of companies will see greater benefits than other types. For example, RFID is unlikely to provide significant value to the receiving process for most manufacturers who receive a limited variety in large quantities from their suppliers. A cereal manufacturer, say, is unlikely to derive significant benefit from deploying RFID because it sources a small variety of direct materials (like corn) in large quantities that require relatively simple receiving and storage.

By contrast, manufacturers who receive a large variety of high-value parts from their suppliers will benefit from case-level and, in some cases, item-level RFID. For example, an auto company may find item-level RFID useful for receiving and tracking seats that must arrive at a car assembly plant in the sequence of production. Manufacturers can also use RFID to track percent returns or manufacturing yield tied to components from a particular supplier.

Retailers are likely to benefit from RFID the most in terms of greater receiving efficiencies because they typically source a large variety of products in case quantities from many suppliers. Moreover, shipments from a single supplier to a retailer often contain multiple products. Most large retailers source in case quantities or more. Thus, case-level RFID would significantly improve efficiencies relative to the use of bar codes by automating the receiving process. However, item-level RFID is unlikely to have any impact on the receiving process for retailers or suppliers receiving in case quantities.

A carrier that cross docks mixed pallets will benefit, as pallet- or case-level RFID tags improve the cross-docking process. Carriers also benefit indirectly as RFID speeds up the receiving process, thus freeing up trucks more quickly. However, the benefits for a carrier that delivers full truckloads direct from source to destination will be small.

Sourcing entails storage as well. RFID can improve inventory accuracy and help facilitate stock verification and stock rotation activities during storage. Consider the example of Synthesis, an Indian home furnishings manufacturer that supplies products to U.S. retailers. Synthesis carries out four stock checks a year, with an additional check conducted by auditors. Stock checks take an average of two days and require significant manual labor. A case-level RFID system with accurate, real-time stock information eliminates the need for stock checks. In particular, during the peak Christmas season, case-level RFID tags can help reduce inventory by increasing visibility at the plant and the warehouse. The ratio of benefits to cost is likely to be highest for firms that have high product variety, have most of their inventory stored in cases, and use case-level RFID. For instance, Hewlett-Packard, a vendor of RFID solutions, has itself used RFID to save 20 percent on stock control costs at some production facilities.4

RFID’s value is likely to be greater in the storage of maintenance, repairs, and operations (MRO) supplies that are expensive and have long supply lead times, especially if the cost of a shutdown is high. Airlines, for example, can use

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RFID to keep spare part inventory and locate critical aircraft parts more quickly.

Overall, case-level RFID can add significant value over existing systems in receiving and storage for large retailers that source a variety of products through many different suppliers. Metrics related to “Source” processes are shown below. Each metric is identified as requiring truck (T), pallet (P), case (C), or item (I) level RFID.

Make

During make processes, RFID is likely to add more value in manufacturing environments with complex flows, and less value where flows are simple. Well-defined flows in a process industry, such as sugar, limit the value of RFID. In a make-to-order setting in a job shop, on the other hand, RFID tags linked to each job can help improve the ease and accuracy of data gathering. This provides the manufacturer with the ability to make scheduling adjustments based on the actual state of the job shop.

Item-level RFID can help improve the manufacturing of highly customized, high-value items. For instance, Vauxhall Motors uses the technology to increase accuracy in manufacturing customized “Astra” models by attaching an RFID tag to each vehicle containing assembly details. The system has increased quality and decreased labor costs associated with customization.5 Yet such improvements bring only marginal additional benefits over existing manufacturing execution systems that can accomplish the same objectives.

The gains from RFID can be more significant in manufacturing environments such as pharmaceuticals, where tracking and the maintenance of compliance records is mandated. The gains are also more substantial in certain food processing activities. For example, Wells Dairy, an ice cream supplier to Wal-Mart, has reduced the cost of maintaining quality control by tagging each two-bucket case of ice cream for quality control.6

As discussed earlier, RFID can help improve up-time for manufacturing resources at airlines and the steel industry by improving the visibility of MRO parts. This can be valuable when the industry is capacity constrained and the cost of lost production is high.

Similarly “closed-loop” asset tracking is another valuable application of RFID. For instance, at a petrochemical refinery employees and tools are tagged: when an employee takes a tool from the tool crib, the tag on the equipment is associated with that on the employee until the tool is returned.

The table below gives metrics for make processes. The metrics are listed as requiring item (I), case (C) or batch (B) level tagging.

Deliver

Within delivery processes, improved tracking with container, pallet-, or case-level RFID can help reduce both the mean and the variance of the move-store-move time between stages of a supply chain, especially for intermodal shipments.

Companies like Wal-Mart that cross dock supply from multiple suppliers into their distribution centers can improve the efficiency of this process with case- or pallet-level RFID. These benefits are reflected in the time and labor requirements for the cross docking operation. RFID can also help track assets like crates, forklifts, and trucks that are used in delivery processes of the goods that may also be tracked. Asset-level RFID can be used to match the asset to what is being moved and improve the scheduling of assets for loading and unloading.

RFID can also reduce shrinkage during transportation and improve cash flows through quicker and more accurate reconciliation of deliveries. For instance, Cambium-Forstbetriebe, a German forest management company, expects to recoup an investment of $600,000 in tagging individual logs within a year due to reduced shrinkage and improved payment reconciliation.7

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technology is a potential boon to supply chain management. What’s not as clear is who benefits and how. In the retail space, the authors conclude that the benefits, costs, and risks of RFID vary depending on where you are in the supply

Companies with inventory in transit could use case-level RFID to assign inventory to customers on-the-go. Intel hopes to assign in-transit inventory to customer orders using RFID. In fact, the technology has already allowed the company to cut inventories by over 80 percent by improving management of in-transit inventories.8

When a supplier delivers to a retailer, a proof of delivery is necessary for completing the transfer of ownership of the products and for invoicing. Any discrepancy often requires significant manual effort to resolve. Case-level RFID can help automate the proof-of-delivery process, making it more efficient and accurate.

By using the same RFID tags through the supply chain, a manufacturer can link future failures of finished goods to suppliers and carriers. Specific metrics can be percent returns tied to particular suppliers, couriers, and distribution centers, as shown below. The metrics are listed as requiring asset (A), item (I), case(C) or pallet (P) level tagging.

Return

The handling of returned product in containers, pallets, or even cases may not be complex enough to benefit significantly from RFID. Firms tend to have few reliable and accurate metrics related to returns, as evidenced by the relative lack of sophistication of these processes even in otherwise savvy companies. Item-level RFID offers the possibility of creating the metrics shown in the table below. In most instances, however, the cost of implementation will far exceed the benefits from more accurate return tracking provided by item level RFID.

Benefits Inside the Retail Level

Having considered benefits in the supply chain from the manufacturer to the retail store, we now focus on processes inside the store including the interaction with the store’s customers.

Benefits to Retailers

We first look at a case-level RFID implementation and the resulting improvement in in-store operations. For most large retailers, a fundamental issue is ensuring that store shelves are not short of a product while it is actually sitting in the back room. For a large retailer like Wal-Mart, which stocks case quantities on shelves, a case-level RFID implementation combined with existing bar code technology can help ensure that items are replenished from the back room before they run out. Item-level tagging will clearly be more effective, though case-level tagging will capture a large part of the benefits.

Item-level tagging in the store is expensive. Yet the cost may be justified for high-value items such as DVDs and apparel. Such merchandise is often moved by customers, resulting in an “out of stock” shelf even though the product is in store in a different location. Apparel retailer Gap reported that an RFID trial improved in-store inventory accuracy from 85 percent to nearly 100 percent.9 A test by grocer Tesco showed that on-shelf availability at stores improved by 50 percent with RFID, though it is somewhat unclear what fraction of the gains could actually be attributed to the technology.10

Item-level tagging in the store may also make it easier to track and prevent pilferage for high-value products. In addition, it can improve the speed and accuracy of the labor-intensive checkout process for both shoppers and checkout clerks. Further, RFID systems are effective at changing price for all or some units of an SKU.

RFID can also help streamline classification of the returned item, tagging whether it is defective and whether the item is to be discounted, discarded, or simply put back on the shelf. Sears has used RFID to update inventories based on returns from end-customers and to ensure appropriate placement in its warehouses.11 The improved management of returns can contribute to justifying item-level RFID, though it hardly makes the business case on its own.

Later we shall see that although item-level RFID will improve in-store operations, in most instances the cost of implementation will overwhelm the benefits relative to current technology.

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Benefits to Consumers

Although consumers are not affected by case-level RFID, they will be affected by item-level tags. Item-level tags may improve the handling of returns from end-customers given the large product variety and potentially higher rate of return associated with this activity.12 Because of consumer privacy concerns, however, both Tesco and the advocacy group CASPIAN (Consumers Against Supermarket Privacy Invasion and Numbering) are suggesting that RFID tags should be “killed” at the time of checkout. U.K.-based retailer Marks and Spencer’s is considering separating tags from clothing at the point of sale, with customers providing the tag if a product is returned.13 Such an approach, however, adds little value to the customer compared to retaining a sales receipt.

RFID provides consumers with few benefits but many risks-most related to the perceived loss of privacy. Like “cookies” on the web and credit-card information, item-level RFID tags can be used to track, predict, and influence individual actions.

More than any other technology, RFID has raised the specter of business (or government) playing “Big Brother,” resulting in a backlash from consumer advocacy groups. The issue has become increasingly sensitive in the light of the U.S. government’s collection of phone records of all consumers from three major phone companies and search-data from companies such as Google. Besides consumer groups, the U.S. General Accounting Office has also raised concerns about the potential intrusiveness of RFID as it tracks and collects data.

Summary of RFID’s Supply Chain Benefits

Relative to existing technology, most of the incremental benefits come by way of lower supply chain costs of receiving and storage, with some benefits stemming from improved planning, manufacturing, and delivery. Most of these benefits are likely to accrue to large retailers and will involve RFID tracking of cases rather than individual items. Exhibit 2 summarizes the benefits and beneficiaries associated with each high-level supply chain process.

Based on our analysis, we can make the following conclusions about RFID’s potential benefits:

1. A case-level RFID implementation provides the highest benefits in most supply chains up to the retail store.

2. The benefits of RFID increase as you move downstream in the supply chain due to the increasing variety and value of products. This means that retailers are the primary beneficiaries. Manufacturers benefit less so, and suppliers to those manufacturers even less. Carriers also benefit from case-level RFID but the benefits over existing technology may not be large.

3. Consumers do not benefit from case-level RFID. Item-level RFID comes with significant privacy concerns for consumers.

Costs and Risks Associated with RFID

Finally, we examine the costs and risks associated with RFID implementation. A meaningful number is the cost of a “basic” implementation comprising “slap-and-ship” capability only. Forrester Research estimated this number to be about $9 million for the first year back in 2004 although others have estimated “six-figure” sums in 2006 as well.14

Even if hardware costs have come down, implementation costs may have gone up over time. Moreover, the number refers only to year one costs. Carolyn Walton, vice president of IS at Wal-Mart, warns that RFID is not a one-time project: “Do not let your management assume it’s the only time you are going to request funding.”15

We can also talk about the costs of tags and readers as of 2006. Tag costs are 15-30 cents per tag but could be lower for large volumes. As regards readers, most ultra-high frequency readers cost from $1,000 to $3,000, depending on the features in the device. Companies may also have to buy each antenna separately, along with cables. Antennae are about $250 and up. A low-frequency reader can be $750 while a high-frequency reader can cost about $500. All these

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numbers are expected to drop drastically by 2010.

Note that the number of tags and readers required and, as a result, the cost of an RFID system grows enormously as we move from pallet level to case level to item level. This is partly why the cost of setting up item-level systems at retail stores is currently prohibitive.

In addition to cost, there are many risks related to an RFID implementation, as discussed below.

Vendor risk: As with any new technology, there is vendor-related risk with RFID. Accordingly, companies should select their technology “partners” with an eye toward ensuring ongoing capabilities for the future. A Deloitte study anticipates that many small and mid-size RFID vendors will consolidate in the next few years-or simply go out of business. 16

IT operations risks: Like any large IT system, RFID will incur high costs of maintenance, and support may be difficult to manage. A close parallel can be found in ERP implementations, where some companies find the eventual costs to be higher and the benefits lower than envisioned. RFID use may be hampered by the lack of suitable technology at all locations.

Process risks: A study by Gillette identified as major risks the lack of adequate RFID-enabled backup facilities and business continuity planning, coupled with the challenge of integrating RFID-enabled processes with existing business processes.17 When RFID replaces an existing technology such as bar codes, firms often use both technologies in parallel for a period of time. This eases the transition but can have the unintended effect of reinforcing old but irrelevant business practices. This approach also requires the firm to run two different processes (one for RFID and the other for the current technology) at the same time to accomplish the task. This increases the risk of process failure.

Technical risks: Several technical factors may limit the effectiveness of tags and readers, making the benefits much lower than anticipated. Reader collision occurs when multiple readers attempt to read the same tag at the same time. Tag collision occurs when one reader receives signals that have reflected back from multiple tags at the same time, confusing the reader because it cannot distinguish between the tags. Next-generation technology such as Gen 2 from EPC Global promises to decrease such collisions, especially at the case level.18 Signal interference and noise arises when ambient warehouse conditions distort the electromagnetic signals sent by the tag and/or reader. A McKinsey report mentions field trials where single-tagged pallets were read with only 78 percent accuracy and double-tagged with 95 percent accuracy.19 Inconsistent data occurs when readers at different points along the supply chain receive inconsistent information from the same tag. If readers and tags are not foolproof, there is a danger that junk data will generate junk performance measures-and hence junk decisions.20

IT security risks: RFID tags should ideally be read only by the relevant supply chain partner(s). But, as with any technology, RFID is vulnerable to hacking by unauthorized parties outside of the supply chain.

These risks compromise the benefits possible from RFID. With the rapid growth in the size and complexity of RFID systems as we move from pallet- to case- to item-level tags, the costs and risks associated with an implementation also grow exponentially. Item-level implementations in particular have a very high marginal cost and risk.

Considering all of these factors, then, our conclusion is this: Technology-related risks and related costs increase as we move from pallet- to case- to item-level RFID in the supply chain.

The Biggest Bang

So how does this analysis help illuminate a business case for RFID? The key idea is to find that part of the supply chain where the bang for the RFID investment buck is the biggest. This would be where the costs and risks are small but the benefits are large. (See Exhibit 3.) Our analysis suggests that the retailer’s (or distributor’s) back-end supply chain processes-where a large variety of cases are received, stored, and handled-provide the maximum gains with the

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minimum pain.

Upstream, suppliers will find lower benefits and lower risks and costs when applying RFID to pallets. Downstream within the retail store, marginal benefits from tagging individual items are not very high relative to case tagging; however, the increase in costs and the risks are large.

Item-level tagging, in general, will be justified only for high-value items such as jewelry or critical items such important spare parts. Item-level tagging may be justified in situations such as pharmaceuticals or healthcare where tracking is mandatory.

Our analysis helps resolve the conundrum as to why companies are hesitant about deploying RFID supply-chain wide despite the promises of benefits. We recommend that companies start where they get the most bang for their buck in the supply chain: at the case level in processes close to the retail stores for receiving, storing, and handling a large variety of cases.

Metrics Related to Source

Step Existing & New Metrics

Source % returns tied to components from a particular supplier* (I). % manufacturing yield tied to raw material supplies from a

particular supplier* (I/C).

Receiving Dwell time of container/pallet/item in loading bay* (P/C). Time to receive shipment (T).

Storage Average, maximum storage time across SKUs* (C/I). Dwell time between receipt and transfer/use (to flag stock rotation problems if applicable)* (C/I). Percentage of items by SKU

with unacceptable level of storage time* (C/I).

Storage of MRO Time for MRO item/batch in storage, average and maximum across items/batches* (I/C). Accuracy of spare part inventory

records in terms of quantity and location (I/C). Repair kits available in full (I).

Metrics Related to Make

Process Existing & New Metrics

Manufacturing Production hours consumed by item/production batch (I/B). Production cycle time (average, min, max) for item/

SKU/batch* (I/B).Manufacturing yield tied to raw material supplies or components from a particular supplier’s batch

(I/B).

Maintenance Repair cycle time for workstation. Time-to-fail for replaced part in workstation.

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technology is a potential boon to supply chain management. What’s not as clear is who benefits and how. In the retail space, the authors conclude that the benefits, costs, and risks of RFID vary depending on where you are in the supply

Metrics Related to Deliver

Process Existing & New Metrics

Deliver * Dwell time for each stage of deliver (move-store-move-etc.) by item; aggregated across items for

average, min, max* (C/P).* Unrecoverable delivery assets (A).* Product shrinkage during delivery (C).* Total time per

shipment before it is received (T).* Shipments damaged by carrier as noted at time of receipt (C).* Individual items dam-

aged by carrier as noted by returns* (I).* Carrier perform- ance: percentage of deliveries made on time in full.

Metrics Related to Return

Process Metric

Returns from retailer to manufacturer * Time between return at retail store and receipt by manufac- turer. if applicable* (I).* Percentage of returns sent to manu- facturer.* Percentage returns associated with manufacturing /

component defects.

Sunil Chopra is the IBM Distinguished Professor of Operations Management at the Kellogg School of Management, Northwestern University. ManMohan S. Sodhi is Professor in Operations Management at Cass Business School, City University, London.

Endnotes

Biederman, David. 2006. “RFID Gains Ground in Logistics; Companies are Adopting the Technology, Even if Immediate Benefits Aren’t Clear,” Journal of Commerce, February 20, 2006. Biederman, D. (2006) Niemeyer, A., Pak, M., and Ramaswamy, S. 2003. “Smart tags for your supply chain,” McKinsey Quarterly, volume 4. Lee, I. 2005. “Radio Tag Revolution Under Way,” South China Morning Post, June 25. AUTOMATIC I.D. NEWS, 1996. RF/ID drives up accuracy at Vauxhall, Automatic I.D. News, 1st August, p35. Control Engineering. 2005. “RFID on the production line,” Control Engineering, Aug. 1. Kasturi, R. 2005. “Beyond quick and dirty RFID,” Intelligent Enterprise, September 1. Leach, P. T. 2004, “Inventory in Motion,” Journal of Commerce, October 25, 2004. Lee, I. (2005) Ody, Penelope. 2005. “Retailers set the pace in US and Europe,” Financial Times, April 20, 2005. Sullivan, L. 2005a. “Return to send: RFID reduces errors for Sears,” InformationWeek, June 20. Norek, C.D., 2003, “Returns management: A forgotten lever for supply chain efficiency”, ASCET, vol. 5. Spy Blog, 2005. RFID tag privacy concerns. Downloaded from : http://www.spy.org.uk/cgi-bin/rfid.pl on Nov. 18, 2005. “RFID at what cost: What Wal-Mart compliance really means” by C.S. Overby, March 1, 2004, Forrester Research “RFID’s high costs deters business,” Mobile and Wireless, March 6, 2006, eWeek, http://www.eweek.com/article2/0,1895,1934328,00.asp . Deloitte. 2005. “Understanding RFID challenges and risks: Developing a pragmatic approach for wholesalers-distributors,” Jan 2005. Downloaded from www.deloitte.com 31st October 2005. Kopalchick, J. and Monk, C. 2005. “RFID risk management,” Internal Auditor, April. Downloaded from http://www.findarticles.com/p/articles/mi_m4153/is_2_62/ai_n13819835/print on 4th Dec 2005. Techwebnews 2005. RFID Network Set To Launch In 2006. Techwebnews.com December 1, 2005, downloaded from www.manufacturing.net on Dec. 15, 2005. Niemeyer et al. (2003) Hotchkiss, D’Anne. 2005a. “Is RFID another word for GIGO?” Supply Chain Management Review, Aug 24, downloaded from www.manufacturing.net on Dec 7, 2005.

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technology is a potential boon to supply chain management. What’s not as clear is who benefits and how. In the retail space, the authors conclude that the benefits, costs, and risks of RFID vary depending on where you are in the supply

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