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.