Understanding the Impact of Emerging Technologies on Process Optimization: The Case of RFID Technology

This paper examines the case of one supply chain in the electricity sector where RFID technology integrated with firm’s information systems acts as an enabler of process optimization. Using a business process approach and laboratory simulation, we explain how the implementation of RFID technology can increase the visibility of information at various layers of the supply chain, allowing members to gather precise information on real demand and improve replenishment processes. On the other hand, while RFID technology has the potential to automate some processes, human intervention is still required. Therefore, use case scenarios and sensitivity analysis should be carefully considered when selecting the proper design (architecture options) for the virtual and hardware components of RFID systems. The choice of the appropriate configuration needs to be integrated in the firm’s strategies and supply chain partner’s vision.