Sustainability Benefits of RFID Technology in the Apparel Industry

Navodya Denuwara, Juha Maijala and Marko Hakovirta
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Navodya Denuwara: Department of Forest Biomaterials, North Carolina State University, Raleigh, NC 27695, USA
Juha Maijala: Stora Enso Oyj, FI-00101 Helsinki, Finland
Marko Hakovirta: Department of Forest Biomaterials, North Carolina State University, Raleigh, NC 27695, USA

Sustainability, 2019, vol. 11, issue 22, 1-14

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.

Keywords: RFID; sustainability; apparel; digitalization; big data; chain of custody; inventory management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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