Deployment of RFID sensors in supply chain management – a review

Abstract

Supply chain is a seamless network of activities and stakeholders involved in any business. It ensures a smooth flow of goods, products and services. In the modern global setting, supply chains have become more complex and inclusion of technology is providing great benefits. Robust technology is needed for identification, tracking and monitoring of the various goods and assets during the supply chain. One such emerging technology for this is RFID sensors. RFID is a popular wireless technology capable of collecting, storing and transmitting data and thus identifying, tracking and communicating. The two main components of RFID systems are tags and readers each of which perform a crucial and specific function. Tags are basically the memory, storing data received by the reader. Readers retrieve the data and transmit it to tags using an antenna. RFID technology has greatly replaced its counterpart and competitive technology- barcodes, in supply chains. It provides various benefits as compared to barcodes due to which it has got increased attention in various fields such as supply chains, healthcare, agriculture, food industry, manufacturing, libraries, security etc. Supply chain management deals with the flow of activities or processes included in any business, production activities. During this entire journey from raw material procurement to final dispatch a number of smaller supply chains are included each of which are critical. RFID technology has been largely deployed in supply chain management in order to identify, track and store information. These RFID systems enable real time monitoring of the supply chain and gives an upper-hand as compared to barcodes. RFID systems are not only used for storing and retrieving product data but also to monitor and track the flow of the entire supply chain. In the case of cold chains, RFID systems are used for maintaining the environment needed for ensuring quality of food products. Various such applications of these sensors in supply chains have been identified and deployed, However, still this technology remains to be dormant to some extent in supply chain industry. This review paper is aimed at doing a thorough literature review of RFID technology, its deployment in the supply chain domain, and challenges faced.

Full text

JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
1
Deployment of RFID sensors in supply chain
management – a review
Venkesh Agarwal
1
, Sonali Ankolikar
2
1
School of Mechanical Engineering, Dr Vishwanath Karad MIT World Peace University, Pune, 411038,
Maharashtra, India
2
School of Electronics and Communication Engineering, Dr Vishwanath Karad MIT World Peace
University, Pune, 411038, Maharashtra, India
1
Corresponding author
E-mail:
1
Venkesh1611@gmail.com,
2
sonali123ankolikar@gmail.com
R
eceived 2 April 2022; received in revised form 17 June 2022; accepted 16 July 2022
D
OI htt
p
s://doi.or
g
/10.21595/
j
mai.2022.22565
Copyright © 2022 Venkesh Agarwal, et al . This is an open access article distributed under the Creative Commons Attribution License,
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract. Supply chain is a seamless network of activities and stakeholders involved in any
business. It ensures a smooth flow of goods, products and services. In the modern global setting,
supply chains have become more complex and inclusion of technology is providing great benefits.
Robust technology is needed for identification, tracking and monitoring of the various goods and
assets during the supply chain. One such emerging technology for this is RFID sensors. RFID is
a popular wireless technology capable of collecting, storing and transmitting data and thus
identifying, tracking and communicating. The two main components of RFID systems are tags
and readers each of which perform a crucial and specific function. Tags are basically the memory,
storing data received by the reader. Readers retrieve the data and transmit it to tags using an
antenna. RFID technology has greatly replaced its counterpart and competitive technology-
barcodes, in supply chains. It provides various benefits as compared to barcodes due to which it
has got increased attention in various fields such as supply chains, healthcare, agriculture, food
industry, manufacturing, libraries, security etc. Supply chain management deals with the flow of
activities or processes included in any business, production activities. During this entire journey
from raw material procurement to final dispatch a number of smaller supply chains are included
each of which are critical. RFID technology has been largely deployed in supply chain
management in order to identify, track and store information. These RFID systems enable real
time monitoring of the supply chain and gives an upper-hand as compared to barcodes. RFID
systems are not only used for storing and retrieving product data but also to monitor and track the
flow of the entire supply chain. In the case of cold chains, RFID systems are used for maintaining
the environment needed for ensuring quality of food products. Various such applications of these
sensors in supply chains have been identified and deployed, However, still this technology remains
to be dormant to some extent in supply chain industry. This review paper is aimed at doing a
thorough literature review of RFID technology, its deployment in the supply chain domain, and
challenges faced.
Keywords: RFID, sensors, SCM, radio waves.
Nomenclature
SCM Suppl
y
chain mana
g
emen
t
SC Suppl
y
chain
RFID Radio frequenc
y
identification
SKU Stora
g
e keepin
g
uni
t
UHF Ultra hi
g
h frequenc
y
EOT En
g
ineere
d
-to-Orde
r
ERP Enterprise resource plannin
g
WMS Warehouse mana
g
ement s
y
stem
GPS Global positionin
g
s
y
ste
m

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
2 JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
1. Introduction
Globalization has made supply chain management and development of robust supply chains
crucial in almost every industry and business. SCM deals with the entire chain of process involved
in any activity, production or business. In the current wake of industry 4.0 and ever-increasing
globalization, competition has witnessed a surge in the business market. Due to this companies
are expanding their operations with the help of more robust supply networks. E-commerce
websites are a great example of how supply chain networking and management is changing the
scenario people lead their lives. A good supply chain significantly improves the efficiency and
competitiveness of an organization. SCM will incorporate largely all the aspects of operations,
supply and demand planning, administering, control of processes etc. Supply chains are also
prevalent in various industries that deal with management of flow of perishable products or
commodities having a limited shelf life such as agriculture and food industry.
Traditionally, barcodes have been popularly used in supply chains. These barcodes required a
physical contact, clear line of sight to be read or detected. Due to increasing competitiveness
around the world, everyone is trying to cut down on cost and time involved in the entire supply
chain. RFID has emerged as an alternative to barcodes and a great solution to reduce overall time
and cost involved in supply chains. RFID is basically a wireless technology that, as the name
suggests, transmits information through radio waves. RFID stands for ‘Radio Frequency
Identification.’ These RFID systems have great advantages over traditional barcode systems such
as it does not require a physical connection or line of sight.
RFID is a relatively new concept introduced into SCM in the past decades. However, RFID as
a technology has been prevalent since World War II, back then it was primarily used for basic
identification applications [1]. In supply chains RFID can play a major role in identification,
inventory management, manufacturing, shipping and distribution, managing operations etc. A
great rise in deployment of RFID systems can be witnessed in SCM which can be attributed to its
many advantages when compared to conventional systems.
This paper is focused on detailed literature review concerning the deployment of RFID systems
into supply chains and SCM. The paper studies the RFID technology in required detail and
provides a summary regarding the technology, its components and classifications. Further on, the
paper focuses on reviewing the various application RFID systems have been deployed in SCM. It
also provides a merit-demerit analysis of the technology. The main aim of the paper is to provide
a holistic review of the RFID systems and its deployment in SCM.
2. RFID systems
RFID technology has been around for a long time now. However, it has gained recent attention
in the past few decades for various applications in a variety of sectors, especially sectors such as
supply chain management that are subjected to harsh environments and often deal with products
which are perishable in nature. RFID systems are often compared and denoted superior to the
conventional barcode systems. RFID has various advantages over barcodes such as it does require
a line of sight of physical connection, it has better range etc. Most importantly barcode systems
are ineffective in functioning in harsh environments which are subjected to dirt, hazardous
contamination, low or high temperatures etc. [1]. RFID systems do share similarities to its
competitor technology, which is barcodes. Bothe these technologies rely on scanning, reading
information and then relating the information to the stored data. However, there are major
differences which come across as RFID being advantageous over barcodes. Firstly, no line of sight
is needed in case of RFID which makes the entire process very fast and less prone to human errors.
In the barcode system, workers will have to manually scan each of the barcodes but with RFID
scanning can be done in bulk instantaneously enabling multiple parallel reading. RFID is also
capable of manipulating data without a need to alter the database corresponding to the tag [3].
RFID sensors have 3 main components that govern the entire functioning. These are tags,

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
3
reader and software. A tag is essentially a memory storage device. Tag consists of small chips
which store data and are embedded with an antenna, which is used for transmitting signals between
tag and reader. A reader is nothing but a decoder which reads the data stored in the tags. The
communication between tag and reader is established via radio waves. Readers have an
appreciable range of centimeters to meters. The range also depends upon the type of tag and
operating frequency. All this data collected is then processed using a software/computer similar
to barcode systems [1].
RFID tags can be classified based on operating frequency range and based on the activity. Tags
can be classified as active, passive and semi-passive. Passive tags are more popular in terms of
applications and deployment and less costly as compared to active tags. The difference between
the two is that active tags have a battery embedded and they remain active throughout their own
power-supply. On the contrary, passive tags do not have any battery and they are activated by the
trigger received from readers [1]. RFID tags operate in different frequency ranges namely, low
frequency, high frequency, ultra-high frequency and microwave range. The classification based
on operating frequencies is shown in Fig. 1. These ranges are to be selected based on a particular
application. In applications involving SCM, usually tags operating in high and ultra-high
frequency are used [3].
Fig. 1. Classification of RFID tags based on operating frequency
3. Applications in SCM
RFID systems can be effectively deployed for various applications such as retail, warehousing,
asset tracking, assembly, configuration manufacturing, logistics, transportation etc. In nutshell,
RFID systems can be used at various phases in different supply chains. Table 1 presents a detailed
literature review of applications of RFID sensors in supply chains.

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
4 JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
Table 1. Deployment of RFID in various SCM applications
Sr
No. Research area Description Reference
numbe
r
1. Food industry
Deployment of RFID Sensors in smart packaging for the food
industry. Monitoring the environment of food products for
maintaining quality of products and improved traceability.
RFID sensors have proved to of great importance when
employed in cold chains and food industry which requires
monitoring of environment to ensure good quality of products.
This paper highlights the necessity of deploying RFID in such
industries and their su
pp
l
y
chains
[4]
2. Advances in SCM
Various advanced concepts such as IoT, Big Data, blockchain
etc. Thorough review of SCM and advances in the field. This
paper gives an in-depth analysis of the new technologies that
are being employed in SCM and how efficiently they are
working
[5]
3.
Challenges posed to
traditional data
warehouse (DW)
technologies by RFID
With implementation of RFID technology, a ginormous
amount of data is created by RFID tags. Although there are
several researches indicating the evident importance of the
role of RFID sensing management systems, this paper
specifically presents methodological steps which can provide
powerful solutions to build a system for traceability,
ex
p
loitin
g
RFID technolo
gy
[6]
4. RFID in the health
care and supply chain
It presents a thorough comparison study of the portions of the
healthcare supply chain in which RFID can be implemented,
provide specific examples of RFID implementation and
discuss how they will add to the effectiveness of the
healthcare supply chain, and simultaneously describe the
current state of RFID technology. Furthermore, give practical
information for managers in the healthcare sector to make
optimized decisions about the possible implementation of
RFID
[7]
5.
Potential to increase
efficiency of supply
chain management
with RFID
With the increase in variety of short shelf-life goods, the need
for tracking and monitoring each and every product variant
creates great complexity of supply chain control and hence
generates the need for an information control system that
actively optimizes the overall management and track channel
inventory. In effect, reducing the mismanagement of
resources
[8]
6.
Critical analysis of
RFID systems in
various industries
Delves into the power and potential it possesses and the
infantile state it is currently in which gives it greater scope for
growth and refinement. Also critiques the cost and
effectiveness of the RFID implementation in the supply chain
mana
g
ement s
y
stems
[1]
7.
Exchange of
information using
RFID and IoT
Focuses on a method in supply chain to successfully achieve
a supply chain information transmission network that can help
businesses to develop a global supply chain management
strate
gy
[9]
8.
Advantages and
disadvantages of RFID
in supply chain
mana
g
ement
Discusses the existing advantages businesses derive by using
RFID implementations in their supply management system.
Along with this, it also discusses the shortcomings of these
im
p
lementations and issues which are
g
enerate
d
[10]
9.
Overview of the
applications of RFID
implementations in the
supply chain
management
Consists of an international overview of the global supply
chain management system and how various corporations are
affected by RFID applications
[11]

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING 5
10.
Theoretical versus
practical
implementations of the
RFID technologies
under supply
management chain
s
y
stems
Broadly looks into the potential areas of research and
methodologies used in research on application of RFID in
manufacturing and supply chain management
[12]
11.
Literature overview of
RFID literature from
2000 to 2015
Provides a systematic review of categorized literatures all
largely focused on RFID research and applications with the
analysis of its immense potential
[13]
12.
Literature overview of
RFID in supply chain
management systems
Research the potential of RFID technologies, approaches to
monitor and evaluate their benefits in supply management
systems, and the Return on Investment with respect to these
systems
[14]
13. DWMS in tobacco
industry: a case study
This paper proposes a digital warehouse management system
(DWMS) in the tobacco industry based on radio frequency
identification (RFID) technology. The DWMS helps
warehouse managers to achieve better inventory control, as
well as to improve the operation efficienc
y
[15]
14.
RFID-enabled
warehouse
management in the
steel supply chain: a
case study
This paper enriches existing theory by introducing the useful
and comprehensive warehouse management optimization
methods based on dynamic SKU (storage keeping unit)
management in the design and development of a RFID-
enabled warehouse. Based on the dynamic SKU management
method proposed, cost optimization methods are employed in
the develo
p
ment of RFID-enabled warehouses
[16]
15.
RFID implementation
on cost structure in
networked
manufacturing
This literature aims to explore influences of RFID technology
implementation on cost and profit efficiencies. Hence a
mathematical model of supply chain cost structure and
functions was created to analyze the impact with which the
model, which has also been verified through a case study
approach, is aimed to examine the economic impact of RFID
implementation at an automotive original equipment
manufacturer and its suppliers. To analyze the impact of the
traceability system using RFID technology, a cost reduction
p
arameter is use
d
[17]
17.
RFID technologies:
supply-chain
applications and
implementation issues
As a mobile technology, RFID can enable “process freedoms”
and real-time visibility into supply chains. This article
provides an introduction to the technology, several case
examples, and implementation guidelines for managers based
on published reports
[18]
18.
Evaluating RFID
investment on a supply
chain using tagging
cost sharing factor
A simulation model is used to calculate the net present value
(NPV) of an RFID investment on a three-echelon supply chain
and to examine the effects of sharing the tagging cost between
supply chain members on the NPV at the echelon level. In the
proposed model, NPVs for the retailer, distributor, and
manufacturer are calculated for two cases
[19]
19.
An on-line inventory
feedback data in
RFID-enabled supply
chain
Discusses in depth an on-line neural network controller that
optimizes a three-stage supply chain. With the inventory data
feedback from an RFID system, the neural network controller
minimizes the total cost of the supply chain rapidly while
satisfying a target order fulfillment ratio. As a test bed of the
neural network controller, we develop the beer game model of
the supply chain. We demonstrate through simulation-based
experiments that the neural network controller shows the
highest performance when the inventory data is secured from
item-level RFID data
[20]

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
6 JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
19.
A case studying for
RFID for handling
trade off
This literature quantitatively analyses the trade-off between
improved flow and tardiness metrics versus the undesirable
increase in material handling when lot splitting in a job shop.
Flexible automated material handling equipment may be
necessary with some operating conditions and policies
because of a dramatic increase in material movements
b
etween work centers
[21]
20.
RFID technology
deployment in a
supply chain with
manufacturer
encroachment
Investigates the strategic interaction between manufacturer
encroachment and RFID deployment decisions in a supply
chain consisting of a manufacturer and a reseller.
[22]
21.
Profitable RFID
strategies under
wholesale and buy-
b
ack contracts
Investigate RFID adoption strategies under wholesale price
and buy-back contracts in a supply chain with one
manufacturer and one retailer who faces inventory
misplacement and demand forecast erro
r
[23]
22.
RFID adoption beyond
mandate, a retailer’s
perspective case study
It analyzes how a retailer firm can stimulate its vendor to
adopt this emerging innovation of supply chain management
by using an incentive contract rather than a mandate. Such a
contract should motivate the vendor to make costly efforts to
adopt RFID, truthfully report the information of adoption cost,
and execute RFID’s ado
p
tion at the retailer’s
p
referred timin
g
[24]
23.
Empirical study of
factors affecting
RFID's adoption in
Taiwan: a case study
Explores the factor affecting radio frequency identification
adoption applications in Taiwan. Its objective is to summarize
the ways in which organizations are thinking about their
possible uses in a wide variety of companies and industries.
An empirical investigation found seven factors affecting
RFID ado
p
tion within Taiwan
[25]
24.
Determinants of RFID
adoption in supply
chain among
manufacturing
companies in China: a
discriminant analysis
Studies the determinant factors of the RFID adoption by
manufacturing companies in China. The population of this
study is manufacturing companies in China that are registered
under the Federation of China Manufacturers. A questionnaire
survey is conducted to study the adoption of RFID by China's
manufacturing industry. This study reveals that the
environment, organization, technology and product have the
impact on the adoption of RFID in China. Organization should
be given strategic attention to improve employee participation
in ado
p
tin
g
RFID as a strate
g
ic tool
[26]
25.
An empirical study of
the effect of applying
RFID in supply chain
management
The effort of this paper was to determine the effects of
applying radio frequency identification (RFID) to identify
items in the supply chain of manufacturing enterprises. At
first, a comprehensive literature review and experts’
judgments are employed to identify possible influential
factors, and then a questionnaire is conducted for evaluating
these factors
[27]
26.
RFID in the
warehouse: a literature
analysis (1995-2010)
To investigate how RFID technology has had an impact in
warehousing, a comprehensive analysis of research findings
available from articles through leading scientific article
databases has been conducted. Articles from 1995 to 2010
have been reviewed and analyzed with respect to warehouse
operations, RFID application domains, benefits achieved and
obstacles encountered. Four discussion topics are presented
covering RFID in warehousing focusing on its applications,
p
erceived benefits, obstacles to its ado
p
tion and future trends
[28]

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING 7
27.
Empirical study for
RFID adoption in
SMEs in Taiwanese
information
technology industry
Through this review the authors attempt to explore in detail
the factors that affect SMEs' RFID adoption in the Taiwan
Information Technology (IT) manufacturing industry.
Employing Exploratory Factor Analysis (EFA) techniques
and utilizing a questionnaire survey in order to collect and
analyze our data. After classifying the responding SMEs into
three different adopters:
– categories named ready adopter, initiator adopter and
unprepared adopter using EFA
–technique our results show that each category has some
specific adoption factors related
–
to their unique situation
[29]
28.
RFID implementation
in supply chains
and its impact on
organizational
competitive
advantage
This literature seeks to address this gap in the literature
through a systematic literature review. Based on a rigorous
screening of the literature (2006–2018), the study develops a
comprehensive understanding of the various corporate-driven
and customer-driven benefit-drivers from RFID
implementation. The “2 C” categorization of benefit-drivers
is novel and should provide more impetus for practitioners to
leverage from RFID implementation
[30]
29.
Improving RFID
traceability systems
with verifiable
q
ualit
y
Aimed to develop an efficient tool to ensure traceability data
entry based on RFID and improve the detection of fakes inside
the su
pp
l
y
chain. Desi
g
n /methodolo
gy
/a
pp
roach
[31]
30.
Traceability in textile
and clothing supply
chain
It describes the process for manufacturing, encoding and
validating an innovative two-factor secured tag based on
particle randomness that is printed on the surface of textile.
Being micro-sized, the particles are easy to read and validate
with pattern recognition. Further, as achieved through an
uncontrolled manufacturing process, the randomness is
unclonable to produce counterfeit tags. A secured tag can be
a low-cost and durable substitute for detachable, unsecured
identifiers commercially available in the market. And
proposes a system approach to introduce an item-centric
secured traceability concept to monitor and control
manufacturin
g
p
rocesses and su
pp
l
y
chain activities
[32]
31.
A cross-national case
study on the effects of
using RFID
technology on its
businesses and SCM
systems
RFID brings incredible advantages for many aspects of
business including supply chain management (SCM). The
global implications of RFID necessitate cross‐national studies
of the technology. This literature aims to conjecture that the
way RFID is perceived and implemented and the extent to
which RFID impacts business performance will vary from
country to country
[33]
32. RFID applications and
security review
Radio frequency identification (RFID) is widely used in
several contexts, such as logistics, supply chains, asset
tracking, and health, among others, therefore drawing the
attention of many researchers. This paper presents a review of
the most cited topics regarding RFID focused on applications,
security, and privacy with Supply chain management effects
as well
[34]
33.
Sustainable Supply
Chains with
Blockchain, IoT and
RFID: a simulation
study
The goal this article has is to highlight how order and
disruption events processes can be improved with the
adoption of emerging technologies and how this reflects on
the improvement of sustainability aspects. The study is based
on the comparison of two simulation scenarios between three
actors in the cheese supply chain
[35]

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
8 JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
34. Traceability in Fishery
SCMs using RFID
The review focuses on RFID-based traceability systems in
fisheries’ SCM, which have been employed globally to ensure
fish quality and security, and summarizes their advantages in
real-time applications. Furthermore, it aims to provide
guidelines and solutions for enhancing the reliability of RFID-
based traceability in food SCM systems so as to ensure the
inte
g
rit
y
and trans
p
arenc
y
of
p
roduct information
[36]
35.
Agri-food supply
chain traceability with
help of RFID
technology
Aims to analyze the current developments in RFID
technology in the agri-food sector, through an operative
framework which organizes the literature and facilitates a
quick content analysis identifying future research direction.
Along with this, it helps to provide an updated analysis on the
current developments of RFID technology for different
product typologies within the agri-food industry, discussing at
the same time its potential in technological and logistical
development regarding different sectors of the
p
roduction/distribution chain.
[37]
36.
RFID-enabled
traceability in the food
supply chain
Studies the main requirements of traceability and examine
how the radio frequency identification technology can address
these requirements. It further seeks to outline both an
information data model and a system architecture that will
make traceability feasible and easily deployable across a
su
pp
l
y
chain
[38]
37.
A preventive
assessment of RFID
deployment for
efficient SCM in short
lived products
A prescriptive framework aimed at addressing radio
frequency identification (RFID) deployment and
implementation by clearly identifying the practical steps that
need to be undertaken in order to carry out a comprehensive
preventive risk assessment from both a business and a
technical
p
ers
p
ective
[39]
38.
RFID-based
manufacture process
control and supply
chain management in
the semiconductor
industry
Proposes an RFID management information system that
integrated three common areas in the semiconductor testing
industry including inventory flows management, location
control in warehouse, and handcar localisation. The main core
of this research focused on cassette management in the
semiconductor test industry. The entire management flow
enters the warehouse management from a semiconductor
manufacturing company to the semiconductor testing
compan
y
[40]
39.
RFID applications in
perishable inventory
management
Presents an overview of RFID technology and its applications
to perishable inventory management. [41]
40.
Strategic value of
RFID in supply chain
management
This paper provides insight into the strategic value of RFID
by building a theory on how RFID used in supply chain
management may create and sustain a competitive advantage.
Four propositions are developed based on a theory of
organizational learning and the theory of first-mover
advantages
[42]
41.
RFID investment on a
supply chain using
tagging cost sharing
facto
r
A simulation model is used to calculate the net present value
(NPV) of an RFID investment on a three-echelon supply chain
and to examine the effects of sharing the tagging cost between
supply chain members on the NPV at the echelon level
[19]
42.
Impact of
implementing RFID
technology in South
Korea
This resource investigates South Korean retailers to identify
key organizational characteristics that positively drive the
evaluation of RFID. Further, this study assesses the impact
one's evaluation has on the adoption and integration of RFID
within thei
r
res
p
ective fir
m
[43]

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING 9
43.
A comparative case
study between factors
affecting RFID
implementation in
Australian and
Chinese supply chains
Investigates and compares enabling factors of RFID
implementation in Australian and Chinese supply chains.
Employing the analytic hierarchy process (AHP) approach,
this study suggests that managers in Chinese firms have a very
different view concerning the importance of factors for RFID
implementation
[44]
44.
With integration of
SCM due RFID, the
case of emerging
intelligent B-to-B e-
commerce processes in
a living laboratory
Purpose of this paper, therefore, is to be an initial effort
towards bridging the existing knowledge gap in the literature.
Design/methodology/approach - This exploratory research
was conducted in one retail supply chain
[45]
45.
Integrating the supply
chain with RFID: A
technical and business
analysis
Presents in-depth analysis of the technical and business
implications of adopting Radio Frequency Identification
(RFID) in organizational settings. The year 2004 marked a
significant shift toward adopting RFID because of mandates
by large retailers and government organizations. The use of
RFID technology is expected to increase rapidly in the next
few
y
ears
[46]
46.
An RFID adoption
framework: a
container supply chain
analysis
A qualitative study in the South African port community
refines and extends an RFID adoption framework and
provides insight into the factors potentially affecting the
adoption of this new technology as well as the probability of
adoption in that communit
y
[47]
47.
Determinants of RFID
adoption in the
logistics industry with
a perspective of SCM
In this investigation it was found that competition in the
marketplace, pressure of transaction partners, suppliers’
industry environment, cost, integration of supply chain
strategy, complexity of RFID, and mutual standard were
among the critical factors. This research anticipates these
factors as crucial and beneficial for the initial introduction
p
hase of RFID adoption
[48]
48.
Factors affecting RFID
adoption different
between public and
private organizations:
a case study
The study suggests two objectives for RFID research: (1) To
show that factors (technological, organizational, and
environmental factors) affecting RFID adoption are different
between public and private organizations in Korea. (2) To
apply a balanced score approach (BSC) to assess the
organizational performance after RFID adoption and show
differences in the performance of RFID adoption between
p
ublic and private organizations
[49]
49. Optimizing RFID
technology
RFID can be applied to a variety of tasks, structures, work
systems and contexts along the value chain, including
business-to-business logistics, internal operations, business-
to-consumer marketing, and after-sales service applications.
As industry adoption of RFID increases there is an emerging
interest by academic researchers to engage in scholarly
investigation to understand how RFID relates to mobility,
organizational and systems technologies (MOST)
[50]
50.
RFID implementation
in the footwear supply
chain
aims to fill this gap by investigating, by means of action
research, and the solutions implemented in a footwear supply
chain. The results of the study present the approaches
developed to address six RFID implementation challenges,
namely: forming the implementation team, selecting the RFID
technology, and defining the RFID system infrastructure,
overcoming technical problems, redesigning supply chain
processes, integrating the RFID system with existent
information systems, and measuring the RFID
implementation performance
[51]

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
10 JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
51.
Implementing an
RFID-based
manufacturing process
management syste
m
This in-depth case study details the organization's experience
and identifies the challenges it faces and important issues in
the development and implementation of the system.
Implications for academics and practitioners are discusse
d
[52]
52.
RFID technologies to
improve decision-
making in apparel
supply chains
It aims to illustrate how an RFID system can be implemented
in the fashion industry through a case study. We observe that
RFID systems are commonly used for shop floor
management, logistics, and distribution management, and
customer relationshi
p
mana
g
ement
[53]
53.
RFID critical success
factors and system
deployment outcomes
This study investigates how information technology (IT)
infrastructure integration and supply chain process integration
moderate the relationships between RFID critical success
factors, and operational efficiency and market knowledge
creation. Using the online survey method, members of the
Council of Supply Chain Management Professionals
(CSCMP) were contacted and invited to participate in the
stud
y
[54]
54.
RFID technology in
manufacturing and
su
pp
l
y
chain
Provides an insight to the application of RFID technology in
the management of manufacturing and supply chain [55]
55.
RFID‐derived benefits
in the retail supply
chain review
A report on research that examined the recent scholarly
literature to identify the information quality attributes
associated with radio frequency identification (RFID)‐based
benefits across sectors of the retail supply chain. Moreover,
the paper uncouples RFID‐focused technology findings that
are a feature of many previous publications and reports on the
decision‐making attributes associated with the perceived
b
enefits of ado
p
tin
g
the technolo
gy
[56]
56.
RFID and buyer‐seller
relationships in the
retail supply chain
Looks for understanding on why a collaborative innovation,
such as radio‐frequency identification (RFID) technology,
engenders seemingly opposite buyer‐seller relationship
reactions amon
g
members of a su
pp
l
y
chain
[57]
57.
Strategic value of
RFID for inter-firm
supply chain networks
This study broadens the discussion scope of RFID to the
implementation stage at the inter-firm level beyond the
internal adoption level, hence improving the delay of RFID
diffusion among transaction partners. Also, the study
describes strategic points that can be used to maximize the
RFID value in su
pp
l
y
chain networks
[58]
4. Critical analysis of deployment of RFID in Supply Chains
When compared to conventional barcode systems, RFID technology proves to be far more
promising in terms of what it has to offer. RFID tags are capable of continuously collecting data
when products transit from shelves to checkout. Thus, this technology helps in minimizing labor,
its associated costs and practices such as shoplifting. The tags have significantly helped in
reordering, stocking, and keeping track of purchases. Smart-shelves are introduced in the retail
sector which are based on RFID systems which prevent situations such as out-of-stock.
RFID systems are also prevalent in shipping and distribution applications. Traceability is
improved using RFID as it enables tracking of the pallets and allows real time decision
implementation. A fleet of 2600 trucks equipped with RFID tags at a particular logistics provider
company enables automatic monitoring of docking and undocking activities.
Supply chain activities such as manufacturing and assembly lines are also potential areas of
RFID deployment. Identification of products can be done using these systems. RFID ensures the
entire quality of process by providing real time checks during assembly. It also promotes lesser
labor and thus optimizes the process cost-wise. A great example of this is the case of Ford Motors

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
11
that have been using RFID tags. An RFID tag is attached to each car’s chassis skid. This tag is
instrumental in indicating which parts and components are to be installed on the chassis,
communicating via the serial number to the reader. As the chassis transits from one assembly
station to the following one, readers read the chassis’ assembly needs automatically so that the
appropriate components can be installed thus eliminating error prone manual barcode scanning
[3]. Intelligent components in ETO management have also been studied. RFID technology is
capable of identifying, tracing location and establishing communication. RFID sensors operating
in the UHF range are proven to be capable of creating intelligent components [59].
RFID systems have proved to optimize logistics, warehousing and transportation activities.
Conventionally, all these activities involved a certain amount of time in inspection, identification
and documentation which was carried out by human force. All this causes a hindrance into the
flow of goods and services in terms of time. RFID can greatly eliminate these hindrances by
automating the entire manual process involved. It provides benefits such as reduced time and labor
involvement and increased visibility. Thus, goods and services move faster through the SC’s and
at a comparatively lower cost. RFID also works efficiently in inventory management by improving
the inventory accuracy, which is the difference between physical inventory and logical inventory.
In the most ideal case, both these inventories are equal. However, due to a series of reasons such
as loss of goods, errors in input etc. both the inventories could differ. Logical inventory is basically
recorded in computers using ERP, WMS etc. RFID can automate the entire scanning process and
thus improve the records [3]. Throughout the supply chain, RFID can be incorporated at various
checkpoints for a plethora of service exchange. RFID will not only ensure identification,
monitoring and tracking but also aid manufacturing, warehousing and inventory, retail, logistics
and distribution, as shown in Fig. 2. Basically, RFID can be said to be a very versatile technology
that will continue to function effectively throughout the supply chain right from inbound material
to delivery.
Fig. 2. Various RFID transactions during a Supply Chain [60]
RFID sensors are enabled with GPS sensors in order to perform the tasks of tracing, tracking
and identification. Another important inclusion is the temperature and environment sensors which
enable them to be deployed effectively in cold chain monitoring. Cold chain refers to the flow of
temperature sensitive and environment sensitive products. A certain temperature and
environmental conditions such as humidity, moisture etc. is to be maintained in order to ensure
their quality and shelf life is maintained. RFID enabled with temperature sensors can give real
time data of the environment and enable human operators to adjust it according to the changes.
These RFID sensors are installed in the boxes or pallets and are believed to improve the efficiency
of cold chains.
The applications of RFID in retail have been used to encourage intelligent business-to-business
e-commerce supply chain management with the aid of the EPC network [45]. The EPC network
is a unique feature and a standard for all RFID infrastructure composing essentially of several

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
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12 JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
components such as the EPC code, which when incorporated into the chip and attached to an item,
provides the details of it for e.g., Temperature, product size, expiry date, etc. The next component
is the RFID reader which identifies any EPC tag/ RFID chip and forwards the information to the
next component i.e., SAVANT. Analogous to the middleman in the entire operation, this
component communicates between the readers and the application systems. It can be further
modified to filter the data according to the specific needs of the organization with the help of the
EPC-IS i.e., the fourth component. It is an information service that provides a gateway between
any requester of information and the organization’s application systems and data. The last
component of the EPC network is the local Object Name Service which is an authoritative
directory of information sources available in order to clarify the details including the EPC tags
used in the supply chain. Therefore creating ‘smarter products that are able to interact with correct
stimuli is helping to enable and facilitate the smoother logging of data in registries within an
organization saving time and effort. With this, many large-scale retailers are investing more in
information management which has helped them to expand business within a shorter amount of
time. It has also enabled retail giants to cross-check their product qualities and customer service.
Considering the role of the deployment of RFIDs in Supply Chain management when it comes
to a buyer-seller relationship [57], it has generated an open network of the flow of information
and monitoring has been easier than ever. It has generated a healthy, competitive yet
knowledgeable environment where suppliers and buyers maintain their connections. Its integration
is more visible when we look at EPC global [46]. It is one of the two primary RFID standards. In
essence it is an internet-based supply chain model aimed at improving supply chain end to end
visibility. One of its key components is the EPC, which is discussed earlier as well. RFID
deployment in the supply chain management has been broadened in perspective with
authentication applications as well. Automatic data acquisition, location, identification etc. all are
products of RFID’s integration with the supply chain Deployment of RFID in supply chain
management provides greater power when it is combined with GPS and Bluetooth which help in
creating a closed loop in monitoring the products. RFIDs have the largest application in supply
chain management. One of the biggest problems a system faces is shrinkage [42]. Various factors
contribute to shrinkage and it is one of the main problems that have been reduced significantly.
Material handling requirements have reduced phenomenally due to the deployment of RFIDs and
respective supply chain networks generated with the help of RFID tags. The usage of these systems
has made is much easier to create accurate databases without much human intervention thereby
saving time and capital. Quicker exception management has enabled impressive applications,
especially in the health-care supply chain management system. Quality control and production
tracking, as explained earlier, are incredible feats achieved due to this system.
5. Advantages and limitations
RFID has its advantages and disadvantages as any modern technology does. As a technique
heavily dependent on the deployment of radiofrequency waves its accuracy is largely dependent
on the accuracy of the transmission and receiver devices involved in the entire process. The entire
process depends on the whether the tags used are active or passive. Advantages of using active
tags in cases of applications where regular data monitoring takes place can generate large amounts
of data and help improve the supply chain therefore fulfilling its purpose in its deployment in the
sector. They can be used and implemented over much larger distances/ ranges making them a lot
more efficient in terms of enabling distant communication between management systems in the
SCM chain. As compared to barcodes, RFID readers and tags do not need line of sight
communication and can be worked from fairly distant areas. Even though the distance will vary
according to the type and configuration of the readers and tags, it encourages the warehouses to
effectively save time. In comparison to other monitoring devices or tagging devices RFID can be
read and overwritten. They can be reused and are much durable thus removing the hassle of
replacement or loss related to monitoring in the SCM system much less. In a SCM the deployment

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
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JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING 13
of safe and secure tagging methods is super important. Thus, RFIDs provide the service of an
encrypted service which remains secure throughout the life cycle of the chain. This makes it
difficult to easily replace a tag already registered into the system. Another advantage of the RFID’s
tags deployed is the fact that they are easily readable once in the system.
In essence, RFIDs have made it so much easier for an organization to manage the entire supply
chain management. It has reduced several instances of reduction of human errors due to its
automatic logging into the system and in turn increased the lifecycle of certain aspects of the
products. The introduction of RFIDs significantly improved the operations over various range of
bandwidths and not just over wavelengths.
In addition to simple active and passive RFIDs, the other types of RFIDs used are Near-field
and Far-field RFIDs. All of which make use of EM spectrum in addition to radiofrequencies.
Although we have seen considerable number of advantages, we do observe several limitations that
come along with its deployment in the SCM systems. Ideally any corporation aiming to set up its
RFID infrastructure will have to incur initial costs that tend to be large. The amount of money
required to set it up might not make the operations for the organization profitable. Even though
these systems once deployed are highly accurate they are prone to collision dude to usage of waves
for emission of signals. This could result in superposition and hence generate inaccurate readings.
The infrastructure of the system is also dependent on the frequency The systems across
organizations and countries vary as s result of lack of standardization. As mentioned in the
challenges of deployment of RFIDs in SCM systems, lack of standardization makes it much harder
for universal systems to be deployed and ever specification followed region-wise makes it much
more difficult to encourage uniformity across various outlets of the same organization. Although
these systems once deployed tend to be secure it does not mean they are completely fool proof
and free of risk. They can be hacked from the connected data base management systems from the
SQL serves to which they SCM system is connected to. Unauthorized devices which read
radiofrequencies may be able to hack or read into the system.
6. Challenges
One of the major difficulties faced by RFIDs and their deployment is that the effectiveness
will largely be dependent on the type of tag itself. Some tag can offer longer reading ranges but
fail to hold data for enough time whereas others can hold larger amounts of data and cost less.
RFID is still not feasible for businesses that are not financially, technically and operationally
sound [46]. The initial cost and maintenance of setting up a system for a business can create
generate complications. There is an upfront expense of RFID readers and tracking software as
well as the continuing cost of the different types of RFIDs.
RFID isn’t ideal for all situations. Especially when it comes to monitoring different types of
materials and substances. Liquids can absorb some of the radio signals and while others can
bounce off the material if it is a metal. There is a huge amount of scope for the improvement of
accuracy and precision in this technology when it comes to its deployment in the supply chain as
well. In the case of too many readers, there is a possibility of collisions and over-reading in the
line of monitoring. Moreover, there are a lot of costs involved when it comes to training and
implementation of the processes. It is also defined by the level of tagging involved. If the tagging
level is at an item level, the number of tags increases significantly, and hence cost of investment
increases. Pallet level tagging, although cheap, does not provide the benefits of large data storage.
Another concern is the lack of standardization. Many parameters when thoroughly considered do
not necessarily yield results due to a lack of standards and normalization. Data warehousing and
enterprise integration also play a crucial role in the cost of investment and integration of the RFIDs
in the supply chain of any business. In order to manage the vast amounts of data generated in a
single day, the organization must be prepared to handle it and be able to use it to its advantage
which is, obviously, a very time-consuming and costly process.
Considering the advantages of RFID systems in supply chains, new developments in the

DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
14 JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
technology to overcome these challenges is needed. With new developments, RFID technology
can monopolize all the supply chains and significantly improve the entire the market of supply
chain management. It will be advantageous for all the stakeholders and give the supply chains a
totally new dimension in terms of its operations and efficiency.
7. Conclusions
RFID sensors-based technology is transforming the supply chain industry for the better. RFID
comes along with various advantages such as providing real time data, tracking, identification,
tracing, automating manual processes etc. All these have proved to be of significant importance
in the supply chain industry. This paper has provided a thorough literature review of the
deployment of RFID in SCM and their performance. It categorizes various application areas of
RFID in SCM through Table 1. The paper also gives brief insights into the technology and it’s
functioning thus enabling a complete understanding of the technology and how it is being
deployed for various applications. Even though RFID has been there for decades, its popularity is
quite new in the field of SCM. It is transforming the entire SC with its capabilities due to embedded
GPS and Temperature monitoring systems. RFID systems are providing optimized results in time,
money and resources utilized as compared to conventional methods. The paper also draws
frequent comparison between RFID systems and the much prevalent conventionally used barcodes
systems and how RFID surpasses it. Thorough in-depth analysis of the deployment of RFID
sensors in supply chains have shown better productivity and improved efficiency of the supply
chain. RFID has great potential in this industry, it can revolutionize and transform every possible
supply chain. However, sufficient further development is needed in order to make it viable for all
kinds of supply chains. In challenges, we have seen how certain barriers with the technology is
limiting its application in certain cases. But with increased attention towards this advantageous
technology, better results can surely be expected. Changing the external design of the sensors and
tags to make it robust to handle different conditions is needed. At the same time, the loss in
transmission in some cases due to liquids can eliminated by providing alternative means of
installations and amplifiers. Even though a lot of applications have been actively found installed
with RFID, there is a certain scope of research and development. RFID has the potential to bring
in more sound changes in the SCM industry thus making the system even more advanced and
technologically equipped.
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JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING 17
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DEPLOYMENT OF RFID SENSORS IN SUPPLY CHAIN MANAGEMENT – A REVIEW.
VENKESH AGARWAL, SONALI ANKOLIKAR
18
JOURNAL OF MECHATRONICS AND ARTIFICIAL INTELLIGENCE IN ENGINEERING
Venkesh Agarwal is a student of B.Tech Mechanical Engineering at Dr. Vishwanath
Karad MIT World Peace University, Pune - 411038, Maharashtra, India. He has authored
and published three review papers in international journals in the areas of SCM,
manufacturing and vibrational analysis. His current research interests include additive
manufacturing, operations research, optimization and supply chain management.
Sonali Ankolikar is a currently an engineering student studying B.Tech in Electronics and
Communication Engineering at Dr. Vishwanath Karad MIT-World Peace
University,Pune-411038, Maharashtra, India. Her current academic interests include data
analytics, artificial intelligence, machine learning and business analytics.