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Sustainability Benefits of RFID Technology in the Apparel Industry

Author

Listed:
  • 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)

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.

Suggested Citation

  • Navodya Denuwara & Juha Maijala & Marko Hakovirta, 2019. "Sustainability Benefits of RFID Technology in the Apparel Industry," Sustainability, MDPI, vol. 11(22), pages 1-14, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:22:p:6477-:d:288033
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    Citations

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    Cited by:

    1. López, Tatiana & Riedler, Tim & Köhnen, Heiner & Fütterer, Michael, 2022. "Digital value chain restructuring and labour process transformations in the fast-fashion sector: Evidence from the value chains of Zara & H&M," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 22(4), pages 684-700.
    2. Sumera Ahmad & Suraya Miskon & Rana Alabdan & Iskander Tlili, 2020. "Exploration of Influential Determinants for the Adoption of Business Intelligence System in the Textile and Apparel Industry," Sustainability, MDPI, vol. 12(18), pages 1-21, September.
    3. Bartosz Pawłowicz & Marek Kołcz & Piotr Jankowski-Mihułowicz, 2022. "The Idea of RFIDtex Transponders Utilization in Household Appliances on the Example of a Washing Machine Demonstrator," Energies, MDPI, vol. 15(7), pages 1-19, April.
    4. Irena Wojnowska-Baryła & Katarzyna Bernat & Magdalena Zaborowska, 2022. "Strategies of Recovery and Organic Recycling Used in Textile Waste Management," IJERPH, MDPI, vol. 19(10), pages 1-18, May.
    5. N. Denuwara & A. Kim & V. Atree & P. Newenhisen & C. Gibson & D. Schork & M. Hakovirta, 2022. "Corporate economic performance and sustainability indices: a study based on the Dow Jones Sustainability Index," SN Business & Economics, Springer, vol. 2(7), pages 1-22, July.
    6. Bartlomiej Gladysz & Krzysztof Ejsmont & Aldona Kluczek & Donatella Corti & Stanislaw Marciniak, 2020. "A Method for an Integrated Sustainability Assessment of RFID Technology," Resources, MDPI, vol. 9(9), pages 1-24, September.
    7. Sumera Ahmad & Suraya Miskon & Rana Alabdan & Iskander Tlili, 2020. "Towards Sustainable Textile and Apparel Industry: Exploring the Role of Business Intelligence Systems in the Era of Industry 4.0," Sustainability, MDPI, vol. 12(7), pages 1-23, March.

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