Purpose -A great deal of confusion exists in the literature concerning the benefits of radio frequency identification (RFID). The purpose of this paper is to investigate the actual benefits of RFID on supply chain performance through the empirical evidence.Design/methodology/approach -The research reviews and classifies the existing quantitative empirical evidence of RFID on supply chain performance. We classify the evidence by process (operational or managerial) and for each process by effect (automational, informational, and transformational).Findings -The empirical evidence showed that the major effects from the implementation of RFID are automational effect on operational processes followed by informational effects on managerial processes. The RFID implementation has not reached transformational level on both operational and managerial processes. RFID has an automational effect on operational processes through inventory control and efficiency improvements. An informational effect for managerial processes is observed for improved decision quality, production control and the effectiveness of retail sales and promotions coordination. In addition, a three stage model is proposed to explain the effects of RFID on supply chain.
Research limitations/implications -Limitations of this research include the use of secondarysources and the lack of consistency in performance measure definitions. Future research could 2 focus on detailed case studies that investigate cross-functional applications across the organization and the supply chain.Practical implications -For managers, the empirical evidence presented can help them identify implementation areas where RFID can have the greatest impact. The data can be used to build the business case for RFID and therefore better estimate ROI and the payback period.Originality/value -This research fills a void in the literature by providing practitioners and researchers with a better understanding of the quantitative benefits of RFID in the supply chain.