Value of RFID Technology in Construction Supply Chains

Abstract

This chapter provides an overview of RFID applications and related benefits in the construction industry, and describes a case study that investigated a prefabricated concrete wall panel supply chain for determining the benefits of RFID. In the case study, simulation models were developed to compare the current manual approach with semi-automated RFID process. The simulation results are used to calculate the related cost savings of each supply chain member, and to determine a cost sharing ratio for distributing RFID investment cost among supply chain members. The results show that RFID provides cost savings in terms of (1) reduced labor time, (2) reduced remanufacturing cost by eliminating missing components, and (3) reduced transfer costs by improving the material identification and tracking processes.