An exploratory study of RFID adoption in the paperboard packaging industry

Abstract

Some experts predict RFID will be the next big technology to revolutionize supply chain management. The RFID mandates by the Department of Defense (DOD), Federal Drug Administration (FDA), and retail companies have required organizations to implement RFID technology. Other companies are evaluating the potential costs and benefits of such adoption. In order to establish benchmarks on RFID adoption, this study surveyed readers of Paperboard Packaging magazine and members of the European Federation of Corrugated Board Manufacturers (FEFCO) to see if they are implementing RFID technology and challenges they may face. The results indicate about 52% of responding companies are not currently considering RFID technology because of the cost concerns. Companies that are implementing or considering RFID are doing it because of their customer requirements although they are concerned about the cost of RFID tags and cost of implementation. Companies that are implementing RFID are somewhat satisfied with RFID implementation.