Economic potential of RFID use in apparel retail industry

The apparel retail sector is especially confronted with challenges and problems in logistics processes such as shrinkage, counterfeiting, out of stock situations and needs to find solutions for improvements. With the help of the Radio Frequency Identification (RFID) technology, the services for apparel supply chain will be able to provide data or information about products along different stages of this supply chain. The wide adoption of RFID across the supply chain will bring significant benefits leading to reduced operational costs and hence increase profit. In this study, the economic potentials of RFID implementation in apparel retail industry are examined and a cost-benefit analysis is carried out for a Turkish apparel retail company which plans to implement reusable RFID tags in all of its two hundred stores.