The rapid development of e-commerce requires more complex way of supply chain. Therefore, to succeed in the new business environments, better manage of supply chain is key requirements. Radio frequency identification (RFID) technology is one of possible technologies to do better control and manage of supply chain. RFID use radio wave and send information through the radio wave from RFID tag to computer system. Currently, the technology widely used for business purpose because it could improve supply chain process effectively. The main benefits of RFID technology are better management of inventory, increase visibility of supply chain process, reduce inventory costs and out of stock rate, and reduce labour and labour costs. In this report, Wal-mart case is introduced to prove the benefits. However, with the benefits, it could bring about some problems. The main problems with RFID system are privacy and security problems, high implementation costs, increase unemployment, and standardization problems. Therefore, in this report, the possible solution and future trend of RFID will be introduced.
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