RFID Technology Adoption Rate in Warehousing: A Study of Manufacturing Companies in Johor

Law Chong Seng, Dr. Lim Kim Yew
2019 International Journal of Trend in Scientific Research and Development  
Radio frequency identification (RFID) is a technology capable of providing real-time information about supply chain operations. It has been used in warehousing to achieve reduced shrinkage, improved material handling and tacking as well as increased accuracy of data collection. This research provides analysis of the RFID adoption rate and identified adoption deciding criteria, benefits and barriers in manufacturing companies in Johor, Malaysia. The data collected from the survey were used in
more » ... criptive statistic (percentage, cross tabulation) and correlation test. The analysis results showed that there were high acceptances of variables for (i) Deciding criteria: size of company, technical know-how, type and flow of system, investment costs, staff competencies, products and customer requirements, and top management support. (ii) Adoption benefits: improved inventory management, warehouse operation enhancements, and warehouse operation costs reduction. (iii) Adoption barriers: implementation cost as key barrier, lack of awareness, uncertainty of return of investment (ROI), uncertainty of technology, no business benefits, popularity of traditional bar code, lack of skilled workforce, and insufficient market acceptance. Reducing costs while improving profitability and consumer loyalty is the objective of each supply chain, and it is one of the difficulties looking by administrators regularly. Numerous organizations, particularly those with highvolume pick, pack, and ship necessities, have put resources into material handling equipment (MHE), actualized warehouse management system (WMS) and Enterprise Resource Planning (ERP) systems to drive cost reduction and improve operational efficiency. While these progressions have yielded various advantages, organizations are yet hoping to accomplish more reserve funds and efficiency [28] . Overseeing warehouse activities today necessitates that you accomplish more with less. The management is requesting cost reductions year-over-year in labour, delivering, and space, with consistent improvement in productivity, throughput, and inventory accuracy. Customers are requesting consistence, value-added services, and shorter delivery lead times. Company must deliver these cost challenges to stay competitive [24] .
doi:10.31142/ijtsrd21681 fatcat:m6tbplqpo5fk5jigbqnamwo67q