The use of radio frequency identification in the supply chain of fast moving consumer goods in South Africa.

Abstract

Organizations have indicated that RFID technology will revolutionise the supply chain in South Africa. There are, however, a number of challenges and issues, including the relatively high costs of the technology and the lack of mature standards, that need to be overcome before this reality is achieved. Research has confirmed that selected organizations understand that there are number of key benefits to be gained from implementing RFID technology. The collaboration between the supply chain partners has been identified as the requirement for the achievement of these benefits. Manufacturers are lagging behind their counterparts, with the research suggesting that they are reluctant to adopt the technology. Retailers and logistics suppliers have been identified as the main beneficiaries of implementing RFID technology. Retailers are expected to follow the American approach with mandates being issued to manufacturers to drive the adoption of RFID technology. RFID technology is to be implemented in the medium-to-long term with none of the respondents currently using the technology.