IMPACT OF RFID UTILIZATION ON SUPPLY CHAIN PERFORMANCE :A STUDY ON PHARMACEUTICAL SECTOR IN KARACHI

Abstract

Purpose: The purpose of this study is to measure the impact of Radio Frequency Identification Technology (RFID) utilization on performance of supply chain within the Pharmaceutical sector in Karachi. Methodology: The target population for the research are from pharmaceutical organizations located in Karachi Data is collected through a web-based survey questionnaire. Three hundred and six questionnaires were sent to different respondents but within the stipulated time a total of 286 responses were received. The impact of RFID utilization on performance of supply chain was analyzed through a conceptual framework based on lactors measuring supply chain performance and RFID utilization. Four proxies were used to measure the performance of supply chain. To analyze the data correlation and regression analysis was done. Findings: Correlation between four performance measures were tested and found to be significant. All the regression tests found significant relationship between RFID utilization and Supply chain performance measures. It shows that RFID utilization creates positive and significant impact on all the selected performance measures. Hence it shows the importance of RFID utilization in the Supply chain of pharmaceutical industry. Practical Implications: This study will help pharmaceutical organizations planning to adopt RFID technology in near future. This will help pharmaceuticals to analyze their risks & benefits regarding RFID technology implementation decision and to achieve a better position for this strategic decision. It will provide an approach to effectively utilize benefits of RFID technology in supply chain.