Radio frequency identification (RFID) is a promising technology which can potentially assist in enhancing the efficiency of manufacturing by reorganising and optimising internal operations, such as purchasing, warehousing, management, and distribution of materials in the production, as well as in external supply chain management. RFID makes it possible to identify individual objects in the production automatically and wirelessly, so it has an increasing potential in various applications which can make manufacturing more efficient and productive. This survey provides an insight to the application of RFID technology in the management of manufacturing and supply chain. The survey includes a summary on the main purposes of use and on the main application fields of the technology. In manufacturing, typical application targets of RFID are related to warehouse management, process management, tool management, supply chain management, and life cycle management. In addition, the main users, i.e. those manufacturing branches which have been the primary users of RFID this far, are listed in this survey to reveal the current industrial practice. Furthermore, the current challenges in implementing the technology are discussed, as well as the most potential future manufacturing applications and research directions. The sources used for this study are original peer-reviewed reviews and journal articles, conference papers, and web references.