A study on RFID adoption in the grocery retailing industry of Thailand

Radio Frequency Identification (RFID) is an emerging technology for supply chain management suitable for the retail industry. Large distributing companies such as Wal-Mart, Tesco, and Target have adopted RFID for real-time tracking and efficient order assortment of fast moving products. An agriculture-based developing country with a huge population and strong internal consumption, Thailand has a big grocery retailing industry that provides ample opportunities for the application of RFID technology. Through a questionnaire survey, this study investigated the current status of RFID adoption in the grocery industry of Thailand. The findings reveal that the industry is aware of the potential benefits that RFID may bring but also concerned with the various challenges in implementation. Although companies surveyed are planning to adopt the technology, none have fully implemented an RFID system. This reveals that RFID adoption is still in its infancy in the grocery retailing industry of the country. The major concerns of the firms include high implementation cost and low return on investment, different system designs and multiple standards, and the lack of technical expertise and management experience to ensure success in adopting the technology.