A hierarchical model of the impact of RFID practices on retail supply chain performance

Empirical data were collected via an online survey administered to 300 retail companies. 130 usable questionnaires were returned, for a 43.3% response rate. To the best of our knowledge, this is the first study to provide an analytical model that places supply chain performance indicators as dependent variables in a hierarchical regression equation with RFID variables as independent variables. Results found that the implementation of RFID practices significantly affect the supply chain performance in the following areas: supplier, inventory, distribution, plan, sales, and forecasting. RFID can improve the performance of distribution systems, including products dispatched and inventory in transit by 33.8% and stock availability by 45.6%. This study contributes to both the RFID and the supply chain performance literatures. Limitations and suggestions for further research are also discussed.