RFID technology has attracted the attention of several businesses and experts worldwide. Given the potential benefits of RFID such as efficient inventory, streamlined supply chain, reduced stock outs and cost reductions, several retailers such as Wal-Mart and Target have decided to adopt RFID technologies. They have also mandated their suppliers to adopt and use RFID technologies. However, anecdotal reports suggest several challenges that suppliers need to address in the process of RFID adoption. Drawing upon innovation diffusion and inter-organizational technology adoption literature, we seek to understand the RFID adoption process in supplier firms and identify key factors affecting RFID adoption by suppliers. We propose a two-stage research design involving exploratory interviews, followed by a survey. Preliminary results from our ongoing research project will be discussed at AMCIS.