RFID Technology for Sustainable Fashion and Textile Manufacturing

Radio frequency identification (RFID) technology is one of the greatest innovations that has been widely accepted in the supply chain and logistics for obtaining accurate and fast information. Utilizing RFID technology in a variety of industries, such as automotive, manufacturing, fashion, and textiles, can alter business dynamics and promote a sustainable future. RFID technology provides not only economic benefits in manufacturing and supply chain processes, but also numerous tangible business benefits, such as competitive advantage, improved customer relationships, resiliency, and increased profitability. Several brands of fast fashion have already adopted eco-friendly production techniques using RFID technology. Other brands should also begin focusing on sustainable practices to ensure their long-term success, which will benefit both the company and the environment. This paper investigates the sustainability benefits realized through the application of RFID technology in the fashion and textile supply chain focusing the manufacturing and retail operations in Vietnam. As Vietnam is one of the emerging economies that produces fashion and textiles for numerous international fashion brands, Vietnamese fashion and textile companies were selected for this study. The results revealed that numerous businesses, especially small and medium-sized enterprises (SMEs) were unaware of RFID technology and its benefits in the production and supply chain.There were several environmental, social and economic benefits, achieved through the implementation of new technologies such as RFID. Social benefits included customer satisfaction, reducing employee stress level and better labor management; the environmental benefits included saving energy, reducing wastage and pollution level; the economic benefits included saving resources, reducing cost and increasing profitability.