stock turn over , market share, investment expenditure and customer satisfaction (loppacher2010).RFID technology has opened the door to a new era in SCM, unachievable using the bar codetechnology. Many businesses have invested heavily in legacy barcode systems. There is apreference to use a role such as checking and scanning incoming inventory thus contributing tothe overall performance of supply chain. Simon Langford believes that RFID is all about totalsupply chain visibility. Real time information can be obtained which is useful in meetingcustomer demands and market trends, improving the ability to have the right product in the rightplace at the right time (Donoghue 2010)2.3.2 Cost control.It’s a set of cost accounting methods and management techniques with the goal of improvingbusiness cost efficiency by reducing costs or at least restricting their taste of growth (cashin2006). Cost strategies are seen as necessary to preserve or boost corporate profits and to maintainor gain a competitive advantage. The emphasis of being the low-cost producer in a givenindustry allows companies to take a greater profit per unit of sales than its competitors at a givenprice. Strategic cost-cutting must be planned carefully, as not all cost reduction techniques yieldthe same benefits (Albert Dunlap).In logistics; consistently reducing and optimizing costs without increasing logistics risk can onlybe achieved by intelligently combining industry-specific analytics frameworks, the righttechnology tools and logistics processes engineered for effectiveness as well as greater efficiencyConsistently reducing and optimizing costs without increasing logistics risk can only be achievedby intelligently combining industry-specific analytics frameworks, the right technology tools and19
logistics processes engineered for effectiveness as well as greater efficiency (Suresh Iyer andAdvait Rahalkar, Genpact, 2010).RFID technology ensures that each system has unique reference so that duplication does notoccur and that when an item is deleted the number is not used again (linden 2009).RFID systemslead to reduction in an organizational production lead time (O’Connor 2006).Chae (2009)recommends that performance should be frequently monitored by the top and middle managerswithin two years both primary and secondary metrics. Cost has been found to be a significantinhibitor to RFID adoption due to increased cost of installation of hardware and software andalso partner integration is difficult and expensive(Premkumar et al 2005).According to RVBtheory, competitive advantage can be attained if the current strategy is value-creating, and notcurrently being implemented by present or possible future competitors (Hilt 2011). All these canbe achieved through cost reduction.