Introduction A supply chain involved of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, through to iteventual delivery to the end user. Supply chain is the managing process for the movement of parts, raw materials or finished products from supplies that goes into manufacturing process then deliver to customers (Yeo and Ning, 2002). Nowadays, much industry is not only focus on product differentiation but them. This is because the performance of supply chain will affect the ability of company to meet customers’ demand and increase customer satisfaction (Hsu, 2005). Moreover, technology plays an important role currently in order to help companies in better and more efficient in managing the supply chain. Radio frequency identification (RFID) RFID has been presented as one possible key technology in building more effective grocery supply chains (Rizzotto and Wolfram, 2002). Radio frequency identification (RFID) technology has existed for decades. With the development of science and technology, radio frequency identification (RFID) technology has developed from obscurity to mainstream applications that help expedite the processing of finished products and materials. Radio Frequency Identification, also known as RFID is a common technology and has become one of the most discussed technologies in today’s market (Ropraz, 2008). Nowadays, RFID has a high level of awareness in the United States, Asia, and Europe. There are many companies had adapted RFID technology in order to implement their supply chain such as Wal-Mart, P&G, GAP, Gillette and so on . For instance, Wal-Mart replaced the scanners and bar coding with RFID reader and tag to reduce labour cost and efficiency tracking in supply chain whereas P&G use this technology to track the products in production line and store shelves. RFID are acronyms are small electronic devices that consist of small chips and antennas. Besides, RFID is a technology that allows huge amount of information store in the chips so that it can be read by the readers within the available distance without direct line of sight scanning (Wisner, Tan and Leong, 2014). The function of RFID technology is similar as a bar code but RFID is definitely worked better than barcode. For an example, barcode require line of sight in order to proceed, scanner must “see” the barcode to read the information, which means that people often have to turn the barcode toward the scanner for reading while RFID technology doesn’t require line of sight?as long as they are within the read range RFID system can identify many different tags without human assistance. Moreover, RFID can read multiple labels at the same time while barcodes can only read tag one by one manually. RFID is able to identify and manage the flow of products information efficiently by reducing the human error and it is smarter than the barcode we use today. How does RFID work RFID system comprise of four elements which are tag, reader, RFID middleware and communication network. First, the tag formed by chip that connect with antenna and it can be attached on the items, box (hold many items inside) or pallet (hold many boxes inside). Second, a reader that give out the radio signal and receive the information from tag. Third, the RFID middleware receive the information from reader and process it into database or enterprise application. · Tags There are different types of tags which are active, semi-passive (two-way) and passive (Nash, 2010). Passive tags are the tags that do not have source of power but they are powered by electromagnetic radio waves which is sent out by the reader. The price of this tag is cheapest as it does not has own power source while the reliability and range is lower than active tags as the distance for tracking is up to 20 feet only. Active tags are the tags that have own power source as they do not depend on the power of reader. Therefore, active tags have better range and reliability but the price is more expensive. Semi-passive tags are the tags have own battery source of power but it relies on reader to supply power for broadcasting the radio waves. The tracking distance for active tag and semi-passive tag is up to one hundred feet. Tags can use for once or several times which depends on the situation. For one time use, it is when customers purchase the single item and throw it away with the packaging whereas the tags used for several times when it is attached on reusable pallet to hold multiple products for shipping purpose. · Readers The main types of readers are fixed reader and hand-held (Wisner etc, 2014). Hand-held readers need to read the data in close distance but it is mobile. The fixed reader is installed at main gates for the purpose of identifying the vehicles, people or goods. Another type of reader is shelf reader which it is fixed and position on the shelf and transmit the inventory information. · RFID software The first layer of this software is device management while second layer is data acquisition for receiving the data from readers. The third layer is to have action on the data receive because the data will diminish quickly. The fourth layer is to interface which to connect with other network for sharing the data received. Benefits of RFID RFID offers numbers of benefits to company or supply chain which consists of inventory tracking, read several tags simultaneously, improve supply chain communication, labour reduction and security. i. Labour reduction RFID technology caused labour reductions due to RFID able to provide inventory tracking and management, supply chain automation. Employees are not necessary to be employed because all the processes are in automation. There are also some researcher predicted that using RFID technology, receiving check-in time can be shortened by 60-93%. At the same time, others estimate that RFID can save up to 36% of orders, while in the transport process can save 90% of the cost of verification. ii. Inventory tracking and management The business era nowadays pay moreand more attention to delivery speed and supply chain effectiveness. RFID improves the inventory tracking and management by provides accurate and real-time information about stock quantity and movement. For instance, shipping company may face the problem of tracking the container as it is transported globally. For retailing, the tracking process for inventory is from shelf to point of sale and when the items are returned. Besides, RFID’s non-line-of-sight also help the whole process go smoothly and effectively. RFID does allow huge quantities of information to be kept in the microchips which can be read by using the RFID readers at a distance, without scanning in a direct line of sight (Nash, 2010). It enable the readers detect the tags in milliseconds and scan several times simultaneously. iii. Improve supply chain communication and partnership Supply chain requires collaborative efforts among the companies involve so the communication is important. Improve supply chain communication and partnership. RFID improved the communication as it allows the informationsharing between partners so that they are able to know the inventory level and the demand. These eliminate the stock out as RFID deliver information that allow the product ship at the right place and right time. This improves the process and supply chain management.