The execution of RFID technology comes up with two critical issues namely:
* The cost of implementation
* The possible abuse of client information.
Fink et al,( 2007) “… acknowledged the cost factor in using RFID technology that Individual tags vary from $0.20 to $50 while tag readers can cost $500 to $3,000”. The major cost, arise from the computer software required for the total system efficiently. The bulk of the cost although comes from these three items , associated cost worth of note also result from trying tags, cost of information misinterpretations, and training employees in the appropriate use of the technology.
Worthy of note also is the ethical issues where there could be possible misuse of information collected by RFID tags. The apprehension is that retailers could start using information to profile clients by matching purchases with individual identifiers like credit cards.
RFID execution can significantly ease costs related to downstream flow of physical products and the upstream flow of demand data. “Concerns and suppliers will be able to:
* View supply in real time,
* Improve on the timing of reorder,
* Perfectly project demand,
* Reduce Cost of labor due to automation of procedures.
* Spot slow-moving and out of date goods
* Access data on the characteristics, location, and other information about their inventory”.(Barut et al, 2006, ).
Additionally, the technology’s primary gains for producers and retailers are overall supply chain visibility starting from production stage to consumption point, and the capability to identify which clients is demanding what, where, and when (Barut et. al. 2006, ). With RFID companies can improve their inventory costing techniques thus, permit for accurate matching of costs to sales. Corresponding Individual purchases are matched to a particular costs, where concerns have a precise analysis of physical goods whereabouts eventually, been capable of perfectly...