Radio Frequency Identification (RFID) is a latest breakthrough technology that can be applied to significantly enhance Supply Chain Management. Seeking to maximise its potential applicability, this paper examines in detail the implementation of RFID in intra-organisational logistics operations and how the formation of 'RFID islands' can facilitate the incorporations of this new technology into a supply chain network system. This paper first examines how an automated RFID system allows firms to achieve high level of inventory visibility and information transparency which leads to system responsiveness and agility. Logistics efficiencies improved by RFID technology and necessary costs are then critically assessed. The research proceeds to develop a method to operationalise RFID's Return on Investment (ROI), and then incorporates the ROI calculation into a RFID roadmap toward a large scale, Business-to-Business implementation. It concludes that substantial efficiencies, strong scale economies and strategic planning for the RFID systems can help firms to harvest competitiveness in innovative supply chain operations and logistics performance enhancement.
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