1. IntroductionThe report highlights in detail the role and importance of Supply Chain Management (SCM) in an organization vis-à-vis Radio Frequency Identification (RFID) and its growing impact in the industry and talks about the changing SCM trends keeping RFID as the focus focal. In recent years, the increasing dynamism and competition in the business operating environment has led to many changes in the way companies behave towards their customers. Customers are the focal point of revenue; Manufacturers are increasingly interested in focusing on customer satisfaction by delivering products and services on time. RFID has made great strides, going from being a distant solution to becoming a mainstream application that helps speed up the management of artifacts and materials. RFID is a product identification and traceability tool that uses radio waves. It uses a microchip and a printed antenna which can then be packaged into different shapes such as a label or embedded between layers of cardboard. These labels are then used to identify the manufacturer, product category, and RFID allows this identification from a distance and, unlike previous barcode technology, does so without requiring line of sight. (Finkelzeller)'Supply chain management integrates the management of supply and demand within and between companies. It includes planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers and customers. (Web: Council for Supply Chain Management Pr...... half of the document ...... same.6. Conclusion This report has clearly and detailedly described the significance, benefits as well as the needs and challenges of 'RFID in the supply chain system. Although RFID offers greater benefits than barcoding, it is an expensive medium and has a price that can be prohibitive for many companies areas of the supply chain and does not require line-of-sight scanning; helps in labor reduction, improves visibility of products and processes, and helps in inventory management adverse distribution issues and suffers from serious privacy issues the ultimate goal of seeing the establishment of item level tracking which should act to revolutionize SCM practices, RFID is here to stay..