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Large retailers and various government agencies have backed off from their earlier radio frequency identification (RFID) mandates. The RFID industry has also matured. The purpose of this paper is to examine RFID implementation in warehousing, utilizing empirical data to determine how the warehousing industry is changing with respect to RFID implementation.

An online survey was sent to Warehousing Education and Research Council (WERC) members at manufacturing firms, third party warehousing/logistics providers, wholesaler/distributors, and retail firms, to determine whether they are implementing RFID technology and what challenges they are facing.

Compared to an earlier study, it was found that fewer organizations are considering the technology. The respondents in general were less optimistic and concerns still exist on return on investment (ROI), potential benefits, integration, and other issues. Some items are of less concern, including cost, standards, and security, perhaps reflecting the maturity of the industry.

This study was limited to a relatively small sample of WERC members but should continue to be replicated in the future as RFID technology adoption matures.

For RFID to be widely adopted by manufacturers and other firms upstream in the supply chain, they must be convinced of a better ROI, through cost reduction or improved business processes.

RFID is not hype and continues to mature. Few companies expected a positive ROI from the technology. These experiences and opinions should be of interest to those researching or considering RFID adoption.

RFID mandates by large retailers and various government agencies made it a requirement for some large organizations to implement RFID technology, while other medium to small organizations are still evaluating the potential costs and benefits of such adoption. This paper examines whether empirical data support the hype on RFID.

A survey was sent to Warehousing Education and Research Council (WERC) members at manufacturing firms, third party warehousing/logistics providers, wholesaler/distributors, and retail firms to determine whether they are implementing RFID technology and what challenges they are facing.

A high percentage of respondents are not currently considering RFID technology. Companies implementing or considering RFID plan to invest a significant amount of money into this technology over the next three years. But a number of concerns still exist and skepticism remains about the potential for RFID to deliver cost savings or a positive ROI in the near future.

This study was limited to a relatively small sample of WERC members. This study should be replicated in the future, once RFID technology adoption matures.

For RFID to be widely adopted there must be a better ROI either through cost reduction or improved business processes.

RFID is not hype and is here to stay. Few companies in the study expected a positive ROI from RFID technology. Their experiences and opinions should be of interest to those researching or considering RFID adoption.