Impact Analysis of RFID on Financial Supply Chain Management

Abstract

This paper proposes SCM financial applications using RFID and shows the benefit of them by simulation. RFID is getting more attentions, and not only field trials but also commercial implementations are reported recently. Although the number of RFID implementations is increasing, many of current RFID implementations focus on SCM logistics application, and this single purpose implementation does not always make positive return on investment. The approach we propose is a multi-application approach, with which SCM financial applications utilize location data of corporate assets captured originally for SCM logistics applications. By sharing the same RFID system and utilizing the captured data with multiple applications, returns from the system will be amplified. We propose five SCM financial applications in three categories, evaluate the benefit of a proposed application by simulation with a hypothetical scenario, and show the feasibility of the proposed approach by developing a demo system.