Impact of using RFID Technology in Improving the Supply Chain Management

Abstract

This thesis presents the impact of using RFID technology in improving the supply chain management (SCM). RFID is an abbreviation of Radio Frequency Identification which is comparatively a new technology that uses radio waves to transmit the information about the materials. The use of RFID technology is increased all over the world in the recent years and it is also growing in Pakistan. RFID is providing various benefits to the companies in the management of supply chain including better inventory management and holding, security, availability to real time data etc. RFID was employed by many big companies across the world. Few companies are using this technology in Pakistan in manufacturing, service and retail sector like Agility logistics, Sefam group etc. The methodology used for gathering the data for this research thesis is the quantitative research method. Data was collected through the questionnaires from the companies who are using this technology in the management of their supply chains. A sample size of 50 respondents filled the questionnaire. For the processing of the gathered data SPSS 22 was used and different tests were employed. The improvement in SCM was measured through the use of the five variables which are cost, quality, time, visibility and flexibility after the employment of RFID technology. According to a generalized question asked to the respondents they responded that the greatest effect of RFID is on increasing the visibility across the supply chain. Then the questions related to the study were asked and the effect of RFID on variables was checked through different tests such as ANOVA, Correlation etc. which showed that RFID has a significant impacton all the variables and is impacting improvement in the SCM.