RFID application in the food-beverage industry: Identifying decision making factors and evaluating SCM efficiency

Abstract

The advancement of Information Technology (IT) has efficiently and systematically changed most of all industry activities. With the increased implementation of IT in logistics, the implementation of Radio Frequency Identification (RFID) in logistics could enable the improvement of supply Chain Capacity (SC) and play an important role in the procurement of resources, production, transport, loading and unloading, warehouse, etc., consisting of Supply Chain Management (SCM). This study identifies how composition factors have an effect on SCM efficiency and the intention of implementing RFID according to the implementation of RFID into the food-beverage industry. In addition, this study attempts to reveal the contributing factors affecting the intention of implementing RFID into food-beverage companies by using the intention determination model for implementing RFID and analyzing data characterizing those companies. Based on nine hypotheses produced according to the implementation of RFID into the food-beverage industry, Confirmatory Factor Analysis (CFA) and Structural Equation Model (SEM) were used for achieving the goals of this study. As the analysis results of this study indicate, the implementation effects of RFID into SCM showed not a unidirectional influence relationship but a multidirectional and complicated influence relationship.