RFID in Supply Chain Management

Supply chain management (SCM) is essential for a company. Effective SCM can always enable the company maintain a stable and lasting competitive advantage, thereby can increase its overall competitiveness. But there are two main problems in the traditional SCM, which are known as “Ripple Effect” mainly due to the delay of a particular activity which results in the delay of the whole SCM and “Bullwhip Effect” caused by the demand uncertainty in the supply chain, respectively. As markets become more global and competition intensifies, the old mode of the traditional SCM is not feasible any more. Companies must find a new way out. RFID technology is a good choice, which can greatly overcome the shortcomings of the traditional SCM and improve its efficiency. However, on the other hand, there are also some challenges. This paper mainly studies the application of RFID technology in supply chain management, the strengths and weaknesses of it are all analyzed.