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Due to globalization and the advancement of technology, the differences are lessened among businesses in terms of IT capabilities and product quality. Operation cost has become a critical key factor of success that determines company’s profit level, as well as its competence in the market. Under the environment of electronic-commerce, logistics in the supply chain ensures a stable supply of stocks to satisfy customer’s demands. An efficient supply chain requires a sound inventory system and operates in coordination with well designed shipping processes. Present shipping process uses barcode in tracking the flow of materials; however, scanning barcode one at a time is tedious and inefficient. Recently, RFID has been regarded as an important technology that influences the growth of global industries in the near future. RFID is able to effectively reduce the overall cost of logistics. However, application of RFID on supply chain management is still at its infant stage. Therefore, this research attempts to develop a prototype of a Smart Logistics Tracking System (SLTS) utilizing RFID. The proposed system aims to replace barcode with RFID, eradicate the time-consuming scanning procedure and ensures an efficient flow of materials. SLTS provides a cargo tracking platform that reports real-time location of the cargo and its flow.