Sustainability Benefits of RFID Technology in the Apparel Industry

Navodya Denuwara,Marko Hakovirta,Juha Maijala

doi:10.3390/su11226477

Navodya Denuwara, Marko Hakovirta + Show 1 more

Open Access

https://doi.org/10.3390/su11226477

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Abstract

Digitalization and big data are currently moving many industries forward and creating value-added efficiency improvements, new services, and business models. One area in industrial digitalization is RFID (Radio Frequency Identification) and related sensor technologies with benefits in asset visibility, employee productivity, risk management, loss, and theft mitigation. This literature review article is focused on specifically looking at digitalization in the apparel industry. Due to its complex global network, it has been a challenging industry to implement such technological advancements. Recent novel RFID system integrations have included highly innovative solutions in new store concepts, business models, and product traceability in the value chain. Inventory management has been improved by using RFID technology for creating and updating and for more efficient controls. Also, chain of custody of the various products in apparel and fashion can be more traceable and efficient. Improved customer connectivity and, therefore, customization are also important benefits using these technologies. Most benefits in using RFID in the apparel industry are related to economics and efficiencies. Similarly looking at scientific literature, the majority is focused on the more business-related value creation. In this publication, results of a systematically made literature review focusing on the three dimensions of sustainability (environmental, social, and economic systems) is reported. This review is done using value chain analyses, and it focuses on reported case studies to highlight the sustainability benefits of the RFID technology. According to the literature findings, this is the first review article that reports on the broader sustainability impact of RFID in the apparel industry. The findings show a very limited number of articles and the main focus of the articles found was in environmental aspects (44%). Following that was economic benefits (36%), and only a limited amount of research articles was found in social aspects of sustainability (20%). In addition to identifying the sustainability areas that RFID technology is related to, this article shows other areas of improvements using RFID technology in different parts of the apparel value chain.

Highlights

The role of corporations and industrial ecosystems in driving sustainability globally is increasing, and corporate involvement in establishing direction, policies, and legislation is becoming a key prerequisite for change [1,2]
Around 65% of global warming potential and 60% of energy demand for 1000 kg of cotton fabric happens during consumer use when consumers extensively wash, launder, and iron their clothes: 2.1 million tons of CO2 emissions are produced by the apparel industry each year, and over a 100 million trees are cut down each year to make fabric such as rayon, viscose, and modal for apparel, with 30% of these from ancient and endangered rainforests [30,31]
Global adoption of RFID will be increasingly witnessed in the upcoming years, especially in the apparel industry

Summary

Introduction

The role of corporations and industrial ecosystems in driving sustainability globally is increasing, and corporate involvement in establishing direction, policies, and legislation is becoming a key prerequisite for change [1,2]. The role of technology and industrial adaptation of specific goods and services in the context of sustainability is well known [5]. It has created new industrial sectors and shown tremendous opportunities to drive true sustainability-driven growth. Systemic analysis is needed in order to explore the total sustainability benefits of platform technology development and investments. This is especially important when looking at the impact to entire industries and related value chains as in the case of apparel industry’s adaptation of RFID (Radio Frequency Identification) technology and its related digitalization, big data, and artificial intelligence [6]

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