Revolutionising sustainability in fashion with RFID technology

In recent years, the fashion industry has been increasingly scrutinised for its negative environmental and social impact. To address these issues, RMIT Vietnam researchers Associate Professor Rajkishore Nayak, Dr Majo George, Dr Irfan Ulhaq, and Associate Professor Pham Cong Hiep have been investigating innovative solutions to promote sustainability and transparency within the fashion supply chain.

In a pioneering study published in the Q1-ranked Cleaner Logistics and Supply Chain journal, the research team elucidates how RFID technology can emerge as a sustainable tool in the Vietnamese fashion supply chain.

RFID is a cutting-edge wireless technology that makes use of electromagnetic fields to identify and monitor electronic-tagged objects. RFID tags store vital product information, including item details, origin, and manufacturing date, which can be accessed at various locations along the supply chain using RFID readers.

Associate Professor Rajkishore Nayak from RMIT’s Bachelor of Fashion (Enterprise) program explained: “RFID has extensive potential applications in the fashion industry, spanning multiple phases of the supply chain.”

“In very simple terms, we can think of RFID as a digital barcode system. Each garment can be endowed with a unique RFID chip containing essential information. As the item passes through RFID reader zones, the data is received and updated in real time, enabling stakeholders to accurately track its progress along the supply chain.”

Long before an item of clothing is produced, RFID technology can be used to monitor the origin and sustainability credentials of raw materials, allowing fashion companies to make informed ethical decisions regarding raw material sourcing.

During the manufacturing phase, companies can track production efficiency, quality control, and compliance with sustainability standards using RFID.

This technology also helps improve the speed and accuracy of inventory management, and ensures timely delivery, resulting in less waste and a smaller carbon footprint for distribution and logistics.

RFID enables traceability and transparency throughout the entire supply chain, helping brands monitor the environmental and ethical impact of their products, thereby nurturing responsible sourcing and production practices.

Associate Professor Nayak stated that several well-known fashion labels have successfully adopted RFID on a large scale, demonstrating the industry-changing potential of the technology.

“In fact, RFID incorporation has led to significant improvements in supply chain efficiency, inventory accuracy, and sustainability practices for well-known brands such as Zara, Adidas, and Levi's,” he said.

Dr Majo George, RMIT Senior Lecturer of Logistics and Supply Chain Management, emphasised that while a comprehensive RFID implementation throughout the complete supply chain would be ideal, it is not a prerequisite for effective utilisation.

“RFID implementation at critical phases, such as distribution centres, warehouses, and retail outlets, can already result in substantial benefits without causing major disruptions. RFID technology is the most effective when implemented strategically in areas with a significant impact on efficiency and sustainability,” he explained.

Dr George added that improved customer experience is one of the most crucial advantages, especially in the post-pandemic e-commerce era: “RFID technology's accurate inventory data ensure that products are readily available to customers, thereby reducing wait times and enhancing the overall purchasing experience. This will ultimately increase brand loyalty.”

According to the research team, some Vietnamese fashion companies may be intimidated by the transition to RFID technology. Nevertheless, the long-term advantages outweigh the initial difficulties. 

RMIT Lecturer Dr Irfan Ulhaq elaborated: “Adopting RFID will differentiate Vietnamese businesses in the global market by demonstrating their commitment to sustainability and transparency, which resonates with conscientious consumers. RFID also reduces operational inefficiencies and inventory discrepancies, resulting in long-term cost reductions."

He suggested: “To begin implementing RFID, businesses can carry out pilot initiatives to determine the technology's potential and benefits in their specific supply chain context. Focusing on RFID integration at critical phases, such as distribution centres and retail outlets, enables them to maximise the impact without incurring excessive up-front expenses.”

The RMIT researchers agree that RFID's maximum potential can be unlocked by companies willing to invest in technology and embrace data-driven decision making, giving them a competitive advantage in the fashion industry.

“Vietnamese fashion companies have a unique opportunity to revolutionise their supply chain practices, strengthen their market position, and become leaders in the global sustainability movement if they employ RFID technology,” Dr Majo George concluded.

Story: Ngoc Hoang

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