ABSTRACT
The purpose of this study is to investigate and analyze the steps necessary to redesign business processes when members of a supply chain implement RFID (radio frequency identification) technology. Specifically, the analysis shows, observing the behaviors of a retailer (Wal-Mart) and a manufacturer (Procter & Gamble), both leaders in their businesses, that the supply chain will be more efficient because of the reduced need for inventories. Despite different up-front costs, this coordination will be mutually beneficial to both the retailer and the manufacturer. Further research could be carried out to determine the possible benefits of incorporating raw material suppliers into the scope of the supply chain. Although there are many skeptics who recognize the value of RFID implementation to retailers but question the benefits to suppliers and manufacturers, this study aims to dispel that unfounded belief. The longterm effects will outweigh the initial pain of implementation. Some of the practical implications identified by this research include an increased visibility for inventory, reductions in inventory and labor levels, and less need to forecast demand throughout the entire supply chain.
