International Journal of Information Management Data Insights 2 (2022) 100084

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International Journal of Information Management Data

Insights
journal homepage: [Link]/locate/jjimei

Enhancing supply chain performance using RFID technology and decision

support systems in the industry 4.0–A systematic literature review
Bhuvan Unhelkar a, Sudhanshu Joshi b,c, Manu Sharma d,e, Shiv Prakash f, Ashwin Krishna Mani c,
Mukesh Prasad c,∗
a
Muma College of Business, University of South Florida, FL, USA
b
Operations and Supply Chain Management Area, School of Management, Doon University, Dehradun, India
c
School of Computer Science, FEIT, University of Technology Sydney, Australia
d
Department of Management Studies, Graphic Era Deemed to be University, Dehradun, India
e
Guildhall School of Business and Law, London Metropolitan University, London, United Kingdom
f
Centre for Advanced Studies, Lucknow, Uttar Pradesh, India

a r t i c l e i n f o a b s t r a c t

Keywords: Supply Chain processes are continuously marred by myriad factors including varying demands, changing routes,
RFID technology major disruptions, and compliance issues. Therefore, supply chains require monitoring and ongoing optimization.
Industry 4.0 Data science uses real-time data to provide analytical insights, leading to automation and improved decision
Supply Chain Performance
making. RFID is an ideal technology to source big data, particularly in supply chains, because RFID tags are
Decision Support System
consumed across supply chain process, which includes scanning raw materials, completing products, transporting
Information Management
goods, and storing products, with accuracy and speed. This study carries out a systematic literature review of
research articles published during the timeline (2000-2021) that discuss the role of RFID technology in developing
decision support systems that optimize supply chains in light of Industry 4.0. Furthermore, the study offers
recommendations on operational efficiency of supply chains while reducing the costs of implementing the RFID
technology. The core contribution of this paper is its analysis and evaluation of various RFID implementation
methods in supply chains with the aim of saving time effectively and achieving cost efficiencies.

1. Introduction chains. RFID has experienced significant adoption across industries in

recent years (Wamba et al., 2013). RFID sensors can provide significant
Effective supply chains form the heart of the modern-day economy. real-time data to monitor inventory levels and identify, track, and en-
This is evident in the popularity and success of Amazon and XPO Lo- sure the security of goods (Zhang & Wang, 2018).
gistics. These companies have each developed a competitive advantage An RFID system is represented in Fig. 1. This system comprises ma-
by using modern technologies within their supply chains to support jor objects including: reader, reading-tags and final servers applied to
strategic and operational decisions. Supply chains are continuously chal- real-time data tracking for multiple applications. In the previous re-
lenged by varying demands from customers, rapid and unpredictable searches studied by us, Shiraishi et al. (2008) discussed UHF RFID based
changes to supply routes, major uncontrollable disruptions (e.g. the on indoor estimation. Wang et al. (2013) explained RFID positioning
COVID-19 pandemic and ensuing lockdowns) and legal and compliance indoor tracking mechanism. The study by Zhu et al. (2020) explained
issues associated with cross-border goods movements. Enterprises sys- the usage of RFID technology for similar purposes. RFID is a digital en-
tems associated with data science and Industry 4.0 enabled technologies abler, complemented by unified standards across industries, high com-
that has the potential to augment sustainable performance and cost re- patibility with IT infrastructure, ease of use, and interoperability among
duction across supply chains (Munoz-Ausecha et al., 2021). Data science functional areas that help businesses evolve as digital entities (Deepu &
is applied to supply chains for sourcing, storing, cleaning, and analyzing Ravi, 2021; Kamble et al., 2019). RFID helps to digitize supply chains
vast amounts of mostly real-time data. Radio Frequency Identification as the technology generates automated sensor data that can be fur-
Device (RFID) technology has the potential to generate voluminous real ther analyzed for automation and optimization. RFID technology func-
time data, streamed data that can be invaluable in optimizing supply tions by identifying the presence of an object, recording the data, and

∗
Corrresponding author.
E-mail address: [Link]@[Link] (M. Prasad).

[Link]
Received 26 July 2021; Received in revised form 22 May 2022; Accepted 23 May 2022
2667-0968/© 2022 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
([Link]
B. Unhelkar, S. Joshi, M. Sharma et al. International Journal of Information Management Data Insights 2 (2022) 100084

Fig. 1. Generalized RFID layout.

Table 1
Search criteria.

Search Terms Initial Search First Screening Second Screening Third Screening Fourth Screening

“Supply Chain Performance” AND “Decision Support System” AND “RFID Technology” 22 19 17 12 6
“Supply Chain Management” AND “Decision Support System” AND “RFID Technology 29 18 12 8 4
“Supply Chain Performance” AND “Decision Support System” AND “Industry 4.0” 22 18 15 14 3
“RFID Technology” AND “Industry 4.0” AND “Decision Support System” 23 12 8 6 4
“RFID Technology” AND “Industry 4.0” AND “Information Management” 42 22 18 12 8

storing that information (Musa et al., 2016). Analyzing data stored in 2. Literature review
the system leads to data-driven insights, which inform decision making
in optimisation (Fanti et al., 2017). RFID can improve inventory levels, A systematic literature review is undertaken identify and evaluated
tighten delivery routes, and enrich the customer experience by offering past works related to RFID and supply chains, published from 2000 to
real-time data that improves overall efficiency and accuracy (Choi et al., 2021 using SCOPUS database. Table 1 exhibits the search patterns used
2017). for secondary literature review.
RFID is applied in several industries including retail, financial, and The initial search resulted in 138 articles. After eliminating the dupli-
consumer goods in order to improve various functional areas such as cates, the list of articles came down to 89. When this list was narrowed
sales, returns, and inventory management, resulting in increased over- down to journal articles only, it resulted in 70 articles. A quick read of
all productivity (Eksiouglu, 2014; Sharma et al., 2020a, 2020c). Due to these articles resulted in the exclusion of those not directly related to our
high returns on investments (ROI), business organizations drive RFID study, resulting in retention of 52 articles. Finally, after detailed read-
implementations. Industrial usage of RFID has improved performance ing of the abstracts and contents, we shortlisted 25 articles for further
by reducing stock levels, response time, and reordering capabilities rigorous study. Factors were identified from the selected papers. The fol-
(Zhang & Wang, 2018; Ding et al., 2021). Visibility and transparency in lowing section discusses the detailed elaboration of the applications of
supply chains increase throughput record accuracy, order fulfillment, RFID in the regime of Industry 4.0 to enhance supply chain operational
improved quality, and collaboration (Delen et al., 2007). Data-driven performance and information management across the system.
self-monitoring mechanisms also provide human-free inventory control,
check-outs, and compliances. Supply chain performance is improved 2.1. RFID technology and supply chain management (SCM)
through collaborative order fulfillment across the industry (Luthra et al.,
2022; Sharma et al., 2021). Implementation requires significant invest- Existing research on RFID continues to grow exponentially (Badia-
ments on part of the business based on strategic considerations of pro- Melis et al., 2018; Fanti et al., 2017). The literature includes its appli-
cesses and people. For example, supply chain managers need to be cations in supply chain management. As a digital technology enabler,
trained as informed consumers of RFID-based data generation and ana- RFID is a competitive tool in managing supply chains and provides sig-
lytics (Batta et al., 2020; Joshi & Sharma, 2021). The literature is limited nificant research interest across a range of activities, including ware-
in exploring RFID role in supply chain optimization; hence this study has housing, packaging, processing, and distribution across value chains
addressed this gap. This study also explores the use of RFID-generated (Delaunay et al., 2007; Chanchaichujit et al., 2020; Paul et al., 2022).
streaming data in AI-based systems for ongoing monitoring and opti- RFID enables the generation and ingestion of real-time data. Analyzing
mization of supply chains. this data produces insights that enable the effective identification, track-
The research study has two objectives: (1) To evaluate key processes ing, and traceability of inventory in supply chains, resulting in greater
in supply chains to understand their challenges and value to the business efficiency and building of a sustainable competitive advantage through
and; (2) To explore RFID technology adoption and implementation to product quality assurance (Chanchaichujit et al., 2020; Liang et al.,
optimize supply chains. This present work discusses value addition due 2021). RFID technology comprises a reader and a tag to identify ob-
to RFID technologies in optimizing supply chains. This study has the jects through radio waves. The tag receives information from an object
potential to impact supply chain efficiencies, reliability, and resilience. and then transmits it to the reader. RFID automates continuous replen-
The study is arranged as follows: Section 2 explains the research ishment or vendor-managed inventories. Tags are used to identify and
literature on RFID adoption Section 3 introduces applications of RFID track objects. The readers record the tag information and send the data
for optimization purposes, Section 4 discusses results and findings and to a server for analytics through software interfaces. Tags comprise an
the last section explained the conclusion. IC chip, an antenna, and its assembly process. Typical RFID tags range

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B. Unhelkar, S. Joshi, M. Sharma et al. International Journal of Information Management Data Insights 2 (2022) 100084

in price from $0.30 to $0.90 USD (Chen et al., 2017). Tags are becom- The literature study further revealed that RFID’s potential to opti-
ing ubiquitous thanks to the rapid drop in the price of IC chips and mize processes is maximized in a business that manufactures and trans-
less expensive assembly processes. RFID supports more than 30 billion ports more than 1000 objects. This parameter is based on the cost-
devices and RFID engagement enhances the communication among var- benefit of RFID application due to scalability. Table 3 summarizes the
ious functional areas, at both the intra- and inter-firm levels (Table 6). benefits and challenges of using RFID to optimize supply chains.
Chipless RFID, which do not require microchips in their transpon- RFID can be deployed in Point of Sales (PoS), warehouses, logistics,
der, have emerged. Instead, chipless RFID uses a technology that mul- and distribution processes in order to improve their efficiency. During
tiplies the radio waves on the shiny surface of a crystal. This is consid- deployment, gateways in RFID readers keep critical decision points in
ered a Nano-technology genre (Lu et al., 2017). A passive tag is sim- mind. These critical points are identified in the supply process for the
ple, cheap and needs no internal power source. Passive tags are the purpose of optimization (Abdullah et al., 2020). RFID implementation
conventional method for tracking products. There is an alternative to starts with studying the accuracy of inventory management and firm-
passive tags called Ultra High Frequency (UHF) tags. The UHF tags fol- level decisions related to inventory planning and procurement of mate-
low the Gen-C protocol (Generation 2, Class 1) that is approved by ISO rial (Kar & Pani, 2014). A study by Lagorio et al. (2020) identifies the
18,000 – 4C (Chen et al., 2017). The schemes are segregated into two innovative approaches for stock inventory, procurement, and storage.
types: pure Additive Links On-line Hawaii Area (ALOHA) and slotted Benčić et al. (2019) show that 70% of data recorded in the system con-
(ALOHA) (Abramson, 1970). Its algorithm aims to reduce collision and tradicts the physical stock of over 350,000 units. The misplaced or lost
uses Time Division Multiple Access. Based on research findings and fea- stock reduces nearly 20% of the total profit. Unreliable inventory man-
sibility, pure ALOHA has now become generalized (Chen et al., 2017; agement impacts overall supply chain efficiencies and presents major
Liu et al., 2018). In pure ALOHA, the time of transmission is contin- challenges to efficiently running businesses. RFID technology improves
uous. Therefore, when a station has an available frame, that frame is inventory management by enabling precise data collection on raw mate-
immediately transmitted. In case of a collision wherein the frame is de- rials from the supplier, storage in warehouses, and eventual distribution
stroyed, the sender waits a random amount of time before retransmit- of finished products through supply chains. RFID-generated real-time
ting it. The slotted phase is the next ALOHA phase, and results from the data has the potential to reduce waste and improve quality as it can
induction of the pure ALOHA phase and its abstraction. This abstraction predict peaks and valleys in operations. RFID optimizes supply chain
process enhance transmission process, which is directly proportional to logistics by coordinating demand with supply, identifying bottlenecks
length of transmission of data packet and the total frame occurrences. in processes, and rapidly suggesting alternatives (Chanchaichujit et al.,
The drawback of this approach is that the message can be shared only 2020). Fig. 2 explains the utilization of RFID in supply chain integration.
once, initially, resulting in a decreased collision count. RFID tags can generate data from suppliers to from the manufactur-
RFID technology tracks objects in motion resulting in numerous op- ing stage to sales, resulting in efficiencies and effectiveness for the entire
portunities for application. These RFID applications are in the health do- organization. RFID technology also improves the goods distribution pro-
main, hospitality, travel, government, retail, and productions, to name cess (Camargo et al., 2020). From an operational perspective, attaching
a few the RFID tag to all relevant materials and products starts the process
of identification. Reading the tag, which may happen at the end of a
3. RFID applications conveyor belt, is the next step after creating identification. Data from
the tag is transmitted to a database, typically on the cloud. The prod-
Earlier literature discussed various applications of RFID, effective uct then moves to the distribution center to be further classified and
implementation strategies, and best practices (Delaunay et al., 2007; transferred to retailers. Tag readers at the distribution center identify
Chanchaichujit et al., 2020). Adoption barriers to RFID, its commer- and segregate the product to maximize distribution efficiency. Similar
cial applications, and the advantage of using RFID in supply chains was processes are repeated in retail stores to identify the incoming product
discussed by Hunt et al. (2007), Lim et al. (2013), Chongwatpol and and transfer the data back to the RFID enterprise database. With the
Sharda (2013) and Abdullah et al. (2020). According to one estimate, help of readers, the movement and location of products are easily iden-
RFID global markets will rise to $15.84 billion USD (Shree et al., 2020) tified throughout the process. Fig. 1 summarizes RFID as an iterative
by the third quarter of the financial year 2021-22. RFID contributes to and incremental technology that deploys radio frequency (RF) signals
more than $1.3 billion of revenue across the supply chains of both manu- to identify and communicate with objects. Once the data is analyzed, it
facturing and service industries. The cost of an individual tag, however, can be used to enhance various functional areas and systems such as de-
is still relatively high, which poses barriers for applications such as la- mand fulfillment, forward and backward order management, as shown
beling goods. For widespread usage, RFID tag costs need to be a fraction in Table 4.
of the margins on goods, especially in the retail sector. Cost appears to RFID technology is based on the concept of radio- frequency that
be the main hindrance to RFID implementation. For this reason, many signals embedded static objects and objects in transit. This auto-
researchers worked on an alternate, economical design (Abdullah et al., identification includes access cards and electronic wallets. RFID data is
2020; Adikari et al., 2021; Arjun et al., 2021). Table 2 depicts the liter- widely used in tool tracking, process management, and access control.
ature summarizing RFID applications in various industries.
The in-depth literature review resulted in the following considera- 3.1. Application of RFID in SCM optimization in the light of industry 4.0
tions for incorporating RFID in supply chains:
Supply Chain Management (SCM) is undergoing a strong linkage
• The business ascertains and dictates the key requirements of opti- between information, material, and fund flows with technologies and
mizing supply chains, especially the manufacturing operations. constantly progressing towards adoption of digital technologies (Núñez-
• Trading strategies and regulations set by business stakeholders pro- Merino et al., 2020). Earlier, the commercial usage of SCM was lim-
vide the limiting parameters for the application of RFID to the supply ited to adoption of conventional radio frequency tags and sensors for
chain. intra-organizational performance. With the advancement of Industry
• Modeling and studying the current “as is” operating conditions and 4.0 technologies, including cloud computing, smart sensors are gain-
corporate agreements is essential to understanding the issues and ing popularity in control systems and route activities, including inven-
challenges in the existing supply chains. tory management and logistics (Ivanov et al., 2018). As a result, oper-
• The supply chain optimization process is impacted by the type and ational performance, productivity, and high visibility across multiple
quantity of inputs (raw materials) and outputs (products or objects) processes are enhanced. Particularly, technologies like RFID and IoT
being manufactured and transported. in supply chains provide economic benefits to the business. With the

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Table 2
RFID applications in various industries.

Contributors Level of Analysis Tools Context

Xiao et al. (2017), Huang et al. (2019), Firm Thematic Analysis Commercial off-the-shelf (COTS) RFID-equipped robot for
Chu et al. (2021) precision location in supply networks.
Benčić et al. (2019), Popović et al. (2021) Firm Cost Analysis Technology enabled distributed ledger and IoT enabled supply
Networks
Rodger (2017) Healthcare Industry Entropy Model Markov blanket entropy approach that aim to minimize
inventory cost, waste reduction and enhancing sustainability.
Ray et al. (2015) Firm Heuristic Techniques Near-optimal allocation of monitor aims to minimize energy
consumption.
Lu et al. (2017) Transportation Industry Dolph-Chebyshev Antenna Array With low fluctuation and consistency in data fetching and
execution, far-filed RFID systems are established.
Joshi (2016); Xiao et al. (2017); Cross-Industrial Experimental The aim is to reduce the execution time of fetching and
Huang et al. (2019), Chu et al. (2021) execution of image processing.
Toyoda et al. (2017), Kshetri (2022) Product Design Experimental Cost performance analysis and deployment of blockchain-based
decentralized application platform.
Cuthbertson and Piotrowicz (2011) Cross-Industrial Experimental Algorithm designing and testing was done to know the RFID
viability in cross-industrial supply chain.
Karuppuswami et al. (2018), Dairy Industry Experimental Sensitivity analysis to evaluate the quality and supply of
Herrojo et al. (2019), Fathi et al. (2020) material by suppliers
Sharma et al. (2021), Zhu et al. (2020) Transportation & Vehicle Theoretical Analysis and A novel and effective close detection approach was used to
Tracking Experimental enhance real time supply chain process.
Sidorov et al. (2019), Paul et al. (2022) Cross-Industrial Theoretical Analysis and Gong, Needham, and Yahalom logic has been developed to
Experimental understand and evaluate storage, computational, and
communication costs.
Björk et al. (2011), Chen and Inventory Control and Object Theoretical Tree Hopping (TH) protocol was testing to know the effect of
Kaakkurivaara (2019) Tracking RFID for inventory positioning and tracking during its
in-transit status.
Chen et al. (2017, 2013) Warehousing Management Experimental E-ERMI framework was developed and simulations were
conducted to evaluate its performance in various application
areas including inventory management, supply chain
management, and distribution and retailing.
Shafique et al. (2019); Svub et al. (2020) Pharmaceutical Industry Structured Modeling Embedded technologies including big data, IoT leads to
benefits to the decision-makers in the sector to enhance the
performance of supply chains.
Joshi and Dwivedi (2020) Pharmaceutical Transportation Experimental Traceability system in a delivery van of the drug distributor in
Management the city of Bilbao.
Sidhu et al. (2020) Switch Gears Firms Conceptual Framework conceptual design approach is used to develop the functional
design of switchgear for inventory performance
enhancement.
Joshi and Dwivedi (2020) Healthcare Industry Theoretical Analysis and Monitoring and Tracking Patient (MTP) for effective record
Experimental keeping system.
Nezhad et al. (2021) Textile and Clothing Theoretical Analysis and Enhanced tracing capabilities of the firm. Warehousing
Manufacturing Experimental efficiency periodically increases due to the appropriate use
of RFID technology.
Oghazi et al. (2018) Multiple Industries Case Analysis and Experimental Integration of RFID with Enterprise Information System helps
supply chain to become more responsive and efficient.
Chanchaichujit et al. (2020); Multiple Industries Thematic Analysis Enhanced industrial usage of RFID as a benefit-driver and
Corches et al. (2021) sustainable competitive advantage.

Table 3
Benefits and Challenges of using RFID.

Benefits Cost Reduction Usage of RFID leads to positive ROI and High returns with waste reduction across the cost centres (Hijazin &
Zhang, 2019; Sharma et al., 2022).
Enhanced Product Quality and Safety High visibility towards the material in transit (Sharma et al., 2020a; Koohang et al., 2022)
Inventory Discrepancy Reduction RFID technology provides two key advantages to the supply chain: first, the visibility allows precise inventory
monitoring and replenishment, and second, reduction in causes of discrepancies (Ustundag & Tanyas, 2009), between
inventory record and the actual inventory (Delaunay et al., 2007; Sarac et al., 2010). These RFID advantages result
from improved visibility and control (Kumar et al., 2021).
Challenges Standardization The standardization benefits are lost if multinational organizations have to invest in different RFID technologies
(Smith, 2021).
Privacy and Legal issues Simple and secure tags that ensure personal data privacy are required before consumers trust and retailers implement
RFID on a mass scale (Ben-Daya et al., 2019).
Other Barriers Adoption issues and other contemporary issues (Abdullah et al., 2020; Lim et al., 2013).

technological extension and commercial usage of robotics and aug- erations and supply chains. Rafiquea et al. (2022) discuss the relevance
mented reality, supply chains are getting further optimized (Chauhan of RFID and Industry 4.0 technologies in the context of a technology-
& Singh, 2019). Industry 4.0 is paving the way for future factories that organizational-environmental (TOE) framework. IoT is among the most
have smart warehousing and optimized logistics. Business benefits in- suitable and easy to adopt digital technologies, making it easy to de-
clude advanced levels of agility, transparency, efficiency, and traceabil- ploy to an existing supply chain. IoT creates a network of smart de-
ity in supply chain activities (Fernández-Caramés et al., 2019). Data vices that creates an ecosystem of digital and physical objects. IoT
automation is an essential base for deploying Industry 4.0 to supply lays the foundation for the allied technologies under Industry 4.0.
chain activities. Without data, businesses struggle to optimize their op- Kamble et al. (2019) discussed the relevance of IoT in the retail sector.

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Fig. 2. Schematic representation of RFID-enabled sup-

ply chain optimization model (adapted from: Xu et al.,
2013).

Table 4 Efficiency in the supply chain process is achieved by embedding

Supply chain management process and RFID applications. RFID as a service, in the networks, or as an IT infrastructure. RFID with
Supply Chain Description remote data transmission helps decision-makers in supply chains. Fig. 3
Management Processes depicts the operations process of the supply chain firm when RFID tech-
nology is implemented. With the emergence of advanced technologies,
Demand Management RFID-generated data ameliorates inaccuracies due to
human error. RFID can also generate sufficient including cloud computing and robotics, RFID-based business applica-
volumes of data for analysis. Timely data for each item tions are continuously evolving and rising (Xiao, 2021; - Sharma et al.,
and in the aggregate enables analysis and generates 2021). Fig. 4 explains the organisational process with the usage of RFID.
insights. Predictive analytics on aggregate data
The licensed document is then processed to the central or key distribu-
matches demand with supply. Aggregate
analytics-based planning is enhanced by sufficient and
tion center. The total time required with RFID-enabled processing is
accurate RFID data that reduces costly buffer stocks three days, compared to 45 days without the technology.
while matching the demand (Kushwaha et al., 2021; The introduction of a warehouse system that uses emerging technol-
Kato, 2021; Arjun et al., 2021; Adikari et al., 2021). ogy for various supply chain activities is the second phase. The aim is
Order Fulfillment RFID data facilitates process automation in materials
to interconnect headquarters, the central distribution center, and the
Management handling, shelving, cross-docking, and retrieval.
Manufacturing Flow RFID technology helps streamline assembly lines. local centers. This system connects the repair shop to the local distri-
Management Streamlined automation in the assembly line reduces bution center, which provides a smooth flow of products. In the final
throughput time. RFID-enabled automation and phase of the process, the start and endpoints of the supply chain are
tracking also improves the visibility of products and
equipped with RFID readers to automate data collection and transmis-
their velocity in the supply chain (Arjun et al., 2021;
Kapoor et al., 2021).
sion. The tags to collect data are attached to the products at a pallet
Returns Management Customer returns add to the inventory pile. RFID level. The data is transmitted to the warehouse system through an inter-
technology provides downstream visibility of negative nal network. Compared to manual data collection, the RFID automates
demands (Konstantakopoulos et al., 2021), thereby the data collection and transmission, thereby improving the process ef-
helping the organization understand its real inventory
ficiency (Bianco et al., 2021; Koohang et al., 2022; Paul et al., 2022).
in real-time.
• Following are the tangible benefits of an RFID-based warehouse sys-
tem:
The research explored the benefits of IoT in improving product visibil- • Efficiencies in storage led to a reduction in warehouses, from 35 to
ity, data extraction, and inter-supplier communication, and as a tool for 23.
business intelligence. Based on the previous literature, authors explored • Human errors decreased due to automation; inventory was collected
the benefits and challenges of RFID technology in SCM. In addition, the by scanning barcodes.
types of commercial and non-commercial available RFID are explored • The integration of activities created continuity in the process, as
through two case studies. The practical benefits of the technology is compared with manual scanning.
discussed in Table 5. • Data analysis is used to estimate the quantity of material required
Various types of commercial and non-commercial RFID are available and identify expected delivery of material.
in the market. Table 6 shows vendors who manufacture and sell RFID. • All relevant points of the supply chain (HQ, key distribution cen-
Two specific scenarios are studied in order to understand and compare ter, and local centers) exchange and interpret the data for improved
the benefits of RFID. efficiency.
In the first scenario, a supply chain process is examined without the
application of RFID. In the second scenario, the RFID technology is ap- 3.2. RFID in smart automation along supply chain information
plied to that same supply chain process. Business enterprises needs a management
strategy to analyze applying the key benefits of RFID to improve the
process by decreasing the delay of supplies. RFID technology can help The growing use of digital technologies has raised new opportunities
by transmitting data in a timely and accurate manner which improves across businesses. For instance, retail firms use underneath technolo-
the overall efficiency of the process. gies like RFID alongside digital technologies to design and develop agile

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Table 5
Benefits of RFID application in business processes for supply chain management.

Business Function Benefits

Customer Relationship Management (CRM) Enhanced visibility into customer needs (Bu & Li, 2017; Chen, 2020; Raza, 2021; Arjun et al., 2021).
Customer reordering pattern designing in a supermart (Zuo et al., 2018; Pür & Sağiroğlu, 2020).
Third party logistics management (Yang & Dong, 2011; Adikari et al., 2021; Liukkonen, 2015).
Production Planning (PP) and Production Operation cost reduction (Shafique et al., 2019; Nguyen et al., 2021; Yang et al., 2021).
Management (PM) enhancement of labor productivity (Sidorov et al., 2019; Paul et al., 2022; Björk et al., 2011).
Data acquisition cost reduction (-Shafique et al., 2019
Real time monitoring of production activities (Zeng & Wang, 2011).
Optimize supply chain management applying active RFID technology (Nguyen et al., 2021; Yang et al., 2021)
Improved Product Life cycle (Guo et al., 2019).
RFID-based production and distribution management systems for the home appliance industry (Gonzalez et al., 2006;
Aziz et al., 2021).
An intelligent system for production resources planning (Liu, 2021)
Optimizing supply chain waste management through the use of RFID technology (Reyes et al., 2020; Reyes et al., 2021).
Accurate and timely asset tracking and smart product recycling (Shafique et al., 2019; Nguyen et al., 2021; Yang et al., 2021).
Material Management (MM) Enhanced security toward material handling towards theft and possible damage due to mishandling (Hunt et al., 2007;
Chongwatpol & Sharda, 2013).
Enhanced visibility along the supply chain (Guo et al., 2019; Sharma et al., 2020a, 2020c).
Material traceability enhancement (Tian, 2016; Syed et al., 2022; Zeng & Wang, 2011).
Optimisation in inventory costs (Xie & Rui, 2010; Singh et al., 2017; Fanti et al., 2017).
Enterprise Resource Planning (ERP) Information usage optimisation using RFID (Nair et al., 2021; Verma et al., 2021)
Financial Management (FM) Improved technology return on investment - (Lee and Lee, 2010)
The financial impact of using RFID in healthcare (Nair et al., 2021)
Financing planning (Joshi and Dwivedi, 2020).
Innovative financing scheme by RFID (Inaba, 2007).
Capital structure design (Miragliotta et al., 2009).

Table 6
RFID products and areas.

Leading Firms Areas of Expertise

Zebra Among the leading manufacturers of RFID tags and readers. Reader types include Fixed, Handheld, and Hands-free. Provides customized solutions to
clients by providing its own RFID tag printing facility (Forcinio, 2007; Trebilcock, 2005).
Alien Technology Ranked among the few renowned suppliers of RFID technology. Has a huge portfolio dealing in RFID tags, labels, readers, and antennas. Also known for
’Alien Academy,’ its hardware and networking training institute chain. (Choudhary et al., 2017, 2018; Gupta, 2021)
Checkpoint Systems An expert in retail RFID solutions. Deals in corporate solutions for stock theft prevention, stock tracking, and mapping (Camargo et al., 2020;
Casamayor-Pujol et al., 2021)
Nedap An expert in RFID solutions for retail warehousing. Develops solutions for mega marts, supermarkets, electronics, and consumable retailers
(Munoz-Ausecha et al., 2021).
Tyco Retail Solutions Has an 80% share of the total market across retails solutions, with expertise in anti-theft solutions (Camargo et al., 2020; López et al., 2021; Choi, 2017).
Smartrac An expert solution provider of RFID particularly for e-passports. Also provides retail store optimization and IoT solutions (Camargo et al., 2020;
López et al., 2021).
Alliance Tech Offers intelligent RFID solutions for office, conferences, and events including daily staff attendance and registration of devices (Oztemel & Gursev, 2020).

supply chains and omni-channels (Oliveira-Dias et al., 2022). Whereas RFID implementation in the supply chain faces two major challenges:
retail logistics firms are using IoT devices along RFID and big data an- adoption issues in supply chain processes and the cost of tags. Effec-
alytics for route operations including route design and delivery per- tive strategies in handling these challenges include precise and extensive
formance (Alberti-Alhtaybat et al., 2019). Factories of the future and modeling of supply chain processes and mass producing RFID tags. Pro-
their supply chains shall compete on data management technology be- cess modeling enhances the flow in the supply chain. RFID costs need
ing a source. Such setups are the learning factory using a low-cost RFID to be compared with the corresponding positive impacts on business,
tracking system and embedding IoT for enterprise-wide information ex- which result in increased capital flow and reduced inventory waste.
change and management (Oztemel & Gursev, 2020). Their success is RFID implementations require a cost-benefit analysis.
largely dependent on agile structures, highly responsive “cognitive sys- Time and cost savings together with the reduction in waste provide
tems” (Brecher & Weck, 2022). The information systems within a cog- significant justification for RFID implementation. Following are some
nitive system includes cyber-physical control systems, RFID and IoT de- key statistical data that justify the use of RFID. The time consumed and
vices, and security systems (John et al., 2021). Thus, designing and the retrieval report of central distribution centers (CDC) and local dis-
implementing a sustainable information system is based on multisen- tribution centers (LDC) before and after implementation of RFID, are
sory information fusion (Liu, 2021). Applications for cognitive systems shown in Table 8. Finally, Table 9 exhibits overall the optimization time
include human-machine interfaces, smart automation, logistics man- and includes inward & outward time, shipment time, and overall time
agement, healthcare, tourism supply chains and agri-food supply chain for both scenarios discussed earlier.
management (Dutta et al., 2021). Table 7 discusses the RFID application
in the supply chain activities. The information management in the mod- 4. Discussion
ern supply chains are based on multiple digital technologies including
cloud computing, big data analytics, cyber-physical systems at place that The research follows a systematic literature review approach to
manage the cognitive systems at various levels including computational explore the academic research on RFID and decision support sys-
modeling, algorithm and system integration (John et al., 2021). Thus, tems in light of Industry 4.0. This study identifies the significance of
the socio-cyber-physical work systems are using Industry 4.0 to develop RFID in enhancing operations and supply chain management activities.
a sustainable cognitive system that covers all stakeholders across the The review covered various themes, including organizational strate-
supply chain (Hozdić & Butala, 2020). gies towards adopting new technologies, including RFID, sustainable

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B. Unhelkar, S. Joshi, M. Sharma et al. International Journal of Information Management Data Insights 2 (2022) 100084

Fig. 3. Layout without RFID.

Fig. 4. Layout with RFID.

Table 7
RFID applications in supply chain activities.

Application Description

Shipping and Container Business The RFID technology enables the efficiency of the process of receiving orders, processing of orders, stock movement and its
management, and close monitoring of stock out situations in the shipping and container business (Hunt et al., 2007). Real-Time
Location System (RTLS) improves operations in container terminals (Savino et al., 2018; Shafique et al., 2019). New advancements
like container management systems based on RFID technology - Lee and Lee, 2010; Li et al., 2016) can enhance the container
location and movement tracking.
Retail Industry Stock tracking is a major challenge in the retail industry. RFID tags constantly gather the position of the stock (from distribution center
to retail outlet and point of sales onwards (Kamble et al., 2019; Sharma et al., 2020a; Joshi & Sharma, 2021). Network analysis
techniques for buying behavior in the supermarket to gauge the demand is reported by Zuo et al. (2018), Sharma et al. (2020c) and
Verma et al. (2021).
Manufacturing sector The manufacturing domain has developed a variety of RFID-based systems together with cloud computing. These RFID-based systems
generate and utilize real-time data for various production activities. These systems also improve production scheduling using RFID
through emerging technologies (Yan et al., 2020).
Agriculture and Food Processing In agriculture and farming, RFID identifies and tracks livestock and food chain. RFID is also deployed in food items storage and in
pre-harvesting agriculture activities including weather monitoring, water supply for irrigation purposes, crop selection, and farm
machinery (Liang et al., 2021).
Healthcare RFID applications for healthcare include accurate health records, asset tracking (example. Public blood banks), patient identification,
and tracking in-patient movements (Abdullah et al., 2020; Adikari, et al., 2021).
Pharmaceutical The pharmaceutical sector utilizes RFID technology for the security of goods and identification of counterfeit products (Rodger, 2017;
Smith, 2021).

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B. Unhelkar, S. Joshi, M. Sharma et al. International Journal of Information Management Data Insights 2 (2022) 100084

Table 8
Time before RFID implementation.

Distribution Center Item (per order) Unit Pre- Implementation Post-Implementation Improvement
(%)

CDC Average Time: Between Outward and Inward Min 88.9 16.2 81.77
Average Time: Transaction Sec 10.0 1.0 90
Average Time: Transaction Retrieval Sec 10.3 1.0 90.29
LDC Average Time Between outward and inward Min 43.6 13.0 70.18
Average time: Transaction Sec 10.4 1.0 90.38
Average Time: Transaction Retrieval Sec 10.0 1.0 90

Table 9 Liu, 2022; Ramasubramaniam & Karthiayani, 2022). Despite its advan-
Overall optimization time. tages, the RFID-based application in supply chain management often
Item Time Without With Improvement comes across many challenges, like retail management tag-collisions,
RFID RFID Percentage (%) customer privacy, and issues related to data integration. In logistics
challenges broadly include security across multi-RFID tags. In oper-
CDC Inward-Outward Duration 1200.0 146.0 87.83
Shipment time 5.5 1.9 65.45 ations and production challenges including data management and in
Overall time 1205.5 147.9 87.73 compatibility among IS of suppliers and focal firm. The emergence of
LDC Inward-Outward Duration 120.0 98.0 18.33 Industry 4.0 in supply chain activities required functional data deci-
Shipment Time 3.1 1.3 58.06
sions and solutions in areas including procurement, production opera-
Overall Time 123.1 99.3 19.33
Supply Inward-Outward Duration 1320.0 244.0 81.51
tions, warehousing, logistics, and distribution (Camargo et al., 2020).
Chain Shipment Time 8.6 1.2 86.04 The integration of RFID and the Internet of Things (known as RFID-IoT)
Overall Time 1328.6 245.2 81.54 has brought advancement through smart operations using automated
sensing and pervasive computing, so that ubiquitous data is available
to all supply chain parties including producers, distributors, and con-
development, modern techniques, information system approaches to- sumers. The data available enhances process efficiency and tracking,
wards supply chain designing and their management, and benefits and improves service experience to the customers -. The role of RFID-
of RFID and Industry 4.0. From the industrial strategy perspective, IoT in maximizing supply chain efficiency and cost effectiveness sup-
the RFID adoption can be observed as the cost drivers towards op- ports the data analysis and formulation of the decision support system
timizing the supply chain function through digitalization (Sarkar & to support digital transition to smart factories (Teixeira et al., 2022),
Shankar, 2021). The convergence of Industry 4.0 technologies with RFID warehouse management (Lim et al., 2013; Xu et al., 2013); cargo trans-
has the potential to add value for businesses through operational ex- portation, (Baygin et al., 2022) and other societal applications including
cellence. RFID technology implementation in the supply chain needs mobility (Auer et al, 2022; Sharmila et al., 2022), attendance systems
to address business functions, technology infrastructure, and industrial (Kariapper, 2021); food production and distribution (Lao et al., 2010),
strategies (Guo et al., 2019; Kamble et al., 2019; Pandey et al., 2021). and physical retailing (Pantano & Willems, 2022). In order to cater to
Key benefits of using RFID-enabled robots includes cost reduction, stock the above listed challenges, we have proposed an RFID-IoT-enabled De-
tracking, response time reduction, and improvements in overall opera- cision Support System.
tions of a business in the logistics and supply chain industry (Casamayor- Fig. 5 presents a conceptual framework for an RFID-IoT enabled De-
Pujol et al., 2021). This paper illustrates the role of RFID in various as- cision Support System. The framework is primarily based on the absorp-
pects of supply chains. The review also explores potential inefficiencies tion capability of an organization using RFID in an Industry 4.0 context.
in the operations and management of inventory techniques (Ustundag Based on the comprehensive review, the authors propose a conceptual
& Tanyas, 2009; Zhang & Wang, 2018; Reyes et al., 2021), and proposes framework for an RFID-IoT enabled decision support system. The frame-
RFID as a means to optimize business processes. Two scenarios are de- work can be utilized as the roadmap for empirical and qualitative re-
veloped and compared using statistics, which illustrates the advantages search in the near future. The practical implications of the study can be
of RFID in the business process. For example, RFID, reduces errors from understood through developing multiple industrial cases.
manual processes. The overall logistic costs and losses due to misplaced
materials and products are reduced. When errors are reduced in the sup- 5. Conclusions, limitations and future research directions
ply chain process, the total revenue is increased by 20% (Abdullah et al.,
2020). This study inspected sources that were published in journals and in-
The results indicate potential savings of up to 84% of the total dexed in Scopus databases between 2000 and 2021, which provided
transportation time and lag time (Newman-Casey et al., 2020). The important articles on RFID technology and decision support systems in
other advantage is the nearly 60% reduction in time to provide ma- the light of Industry 4.0. Further studies should be oriented to how var-
terials that improve the total efficiency of a supply chain by nearly ious allied technologies, including IoT and AI, can assist supply chain
80% (Bianco et al., 2021; Paul et al., 2022). RFID established as a performance. The review covered various themes, including organiza-
global technology that gives industrial advantages and shows signif- tional strategies towards adopting new technologies, including RFID,
icant adoption across industries including healthcare supply chains sustainable development, modern techniques, information system ap-
(Cui et al., 2022; Mohanty et al., 2022), transportation management proaches towards supply chain designing and their management, and
and location tracking, (Subbulakshmi et al., 2022; Umapathi, et al., benefits of RFID and Industry 4.0. The results indicate potential savings
2022), aerospace and defense operations (Goritiyal, et al., 2022), ur- of up to 84% of the total transportation time and lag time, nearly 60%
ban planning (Sharma et al., 2020a; Yang et al., 2021), retail opera- reduction in time to provide materials that improve the total efficiency
tions (Kamble et al., 2019; Bellini et al., 2022), tourism supply chain of a supply chain by nearly 80%. RFID technology is established as a
management (Bose et al., 2022), smart manufacturing (Rafiquea et al., global technology that gives industrial advantages and shows signifi-
2022; Sharma et al., 2021). The variety of applications of RFID-enabled cant adoption across industries including healthcare supply chains. This
technologies reveals its significance in improving traceability in supply study has offered suggestions on operational efficiency of supply chains
chains and overall effectiveness in business (Syed et al., 2022), primar- while reducing the costs of implementing the RFID technology. The core
ily in areas like agriculture and food supply chains (Mai et al., 2010; contribution of this paper is its analysis and evaluation of various RFID

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B. Unhelkar, S. Joshi, M. Sharma et al. International Journal of Information Management Data Insights 2 (2022) 100084

Fig. 5. Proposed conceptual framework for a RFID-IoT-enabled decision support system.

implementation methods in supply chains with the aim of saving time Declaration of Competing Interest
effectively and achieving cost efficiencies. The scope of this research
is limited to studying RFID’s impact on supply chains. Future research The authors declare that they have no known competing financial
should investigate the relationship between RFID-IoT with the physi- interests or personal relationships that could have appeared to influence
cal internet and examine how real-time data processing can continue to the work reported in this paper.
optimize decision making in supply chains.

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B. Unhelkar, S. Joshi, M. Sharma et al. International Journal of Information Management Data Insights 2 (2022) 100084

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