"Logistics providers can definitely make use of RFID to streamline processes and track products," Lee added. "But more importantly, RFID brings us an enormous opportunity to expand our value-added service businesses and boost revenue."

He explained as a 3PL, the company can expand its value-added service to provide tagging services for smaller manufacturers, who may not afford the IT resources and knowledge to apply RFID. Through a few tests and pilot projects in RFID, Kerry Logistics has gained experience in the technology to help local manufacturers, said Lee.

But he also noted the lack of momentum of RFID adoption among retailers and their Asian suppliers has limited the use of the technology among logistics providers. Since logistics providers do not have ownership of the product, it is impossible for them to enforce or drive the use of RFID.

"RFID is only applicable in the supply chain process when the cargo arrives with the tags," said Lee. "We have no right to de-pallet the cargo and apply tags just to optimize our operation process."

Despite much R&D effort on the technology, Lee said RFID may not be as significant for logistics operators in Hong Kong. One of the reasons is the shrinking volume of goods being handled locally.