Results also point to the overriding importance of managerial considerations related to
supplier adoption. In an open loop network, RFID enabled automated receiving clearly
impacts the supplier and this represents a major consideration when implementing the
308 RFID Handbook: Applications, Technology, Security, and Privacy
application. Client mandates are usually perceived by the supplier as generating additional
costs while contributing few bene?¬?ts. This can create a con?¬‚ictual situation in the buyerseller
relationship as many reports indicated was the case at Wal-Mart (Fogarty, 2004;
Keizer, 2004; Romanow, 2004; Schwartz, 2004). Early adopters agree that the supplier must
also see bene?¬?ts for the application to be adopted by both parties (Schwartz, 2004). In fact,
the biggest obstacle to successfully implementing this RFID application is not tied to
technical issues but rather to obtaining supplier buy in.
RFID enabled automated receiving application optimizes a process which is shared
between buyer and seller and thus should contribute to build a collaborative advantage.
In the context of RFID enabled automated receiving, the client shares the mandate requirements
and numbering schema to be used. In return, the supplier sends a tagged shipment
and electronic information which can be transmitted through the EPC network when the
data is not on the tag.
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