Radio Frequency Identification Device (RFID) has been widely recognized as a useful tool for effectively managing firms’ supply chain activities. Extant research on RFID in the supply chain domain has focused on implementing this technology in various supply chain activities, such as logistics and transportation, assembly and manufacturing. However, the application of RFID in warehousing management has received little attention. This study explores the implementation of RFID in warehousing in the construction sector. The study objectives are twofold. First, it explores the benefits of implementing RFID. Secondly, the study identifies major challenges associated with implementing RFID, which can prevent realizing the full potential of the technology in warehouse operations. The study adopts a qualitative research design by employing a case study approach to achieve these objectives. Specifically, the study undertakes three weeks of field observation and conducts interviews with 9 participants involved in warehouse operations in the construction sector. The findings show RFID implementations could bring significant values to warehouse management related to operational efficiency, service level and warehouse flexibility. However, the study also uncovered several challenges that can block the case firm from capturing the full potential of implementing RFID. The findings can contribute to a better understanding of the application of RFID technology in warehousing. Practitioners can understand the identified challenges to help them tackle them and inform their future decisions regarding further investment in this technology.