Radio frequency identification tagging: Supplier attitudes to implementation in the grocery retail sector

Abstract

Purpose

The principal rationale for this study is to investigate the implications of the introduction of radio frequency identification (RFID) tagging on suppliers. Emphasis concerns the impact it is likely to have on suppliers to the UK grocery retail market.

Design/methodology/approach

Primary research focuses on UK grocery suppliers' perception, with two specific research questions: “What are the implications of the introduction of RFID on suppliers?” and “How will these implications impact on the success of RFID in the future?” In‐depth interviews were conducted with a selection of different suppliers to gather attitudes towards RFID technology.

Findings

RFID is highly topical, and currently at the forefront of many supply chain managers' minds. This study focuses on business‐to‐business implications of RFID to the FMCG/perishable food sectors, notably in comprehension of an under‐researched area of supplier perspective. This study concludes that in order to keep costs of application of RFID to a minimum, retailers and suppliers need to develop standardized but flexible systems. Implementation of RFID must take into account the context of supply chain power imbalance.

Research limitations/implications

Reviewed literature suggests existing focus has been on the operational benefits to be gained from implementation of RF‐technology, and a good deal of work conducted has concerned the issue of consumer privacy. There has been one major investigation (in the UK), conducted by the Institute of Grocery Distribution concerning implications for the retailing industry; however, there is still a gap in the literature concerning attitudes of suppliers (notably with regard to the grocery sector). This study redresses this balance by conducting field work with suppliers.

Practical implications

To prevent any future animosity retailers and suppliers must work together and costs need to be more equitably distributed. The FMCG/perishable food categories appear to offer a specific challenge to RFID introduction; however, future study is considered necessary to capture the diversity in these sectors.

Originality/value

The paper provides information of value to all those involved with methods of verification in the supply chain.

Citation

Hingley, M., Taylor, S. and Ellis, C. (2007), "Radio frequency identification tagging: Supplier attitudes to implementation in the grocery retail sector", International Journal of Retail & Distribution Management, Vol. 35 No. 10, pp. 803-820. https://doi.org/10.1108/09590550710820685