The ROI for EPC RFID Is Lacking!
Supply Chain Technology & RFID
Wal-Mart has mandated that by January 2005, its top 100 suppliers must apply passive RFID (Radio Frequency Identification) tags based on EPCglobal standards to cases and pallets headed toward three specific Distribution Centers (DCs) in Texas. Virtually all manufacturers and distributors of consumer goods will eventually be impacted by this because Wal-Mart?s moves in RFID are being copied by other retailers.
ARC Research talked to 24 companies that were actively investing in EPC (Electronic Product Code) RFID. Unfortunately, this study shows that for manufacturers and distributors selling to large retailers, RFID has a much lower ROI (Return on Investment) for them than for their retail customers. The situation is made more difficult because the technology is immature and current suppliers of tags are unreliably supplying a poor quality product.
Wal-Mart has mandated that by January 2005, its top 100 suppliers must apply passive RFID (Radio Frequency Identification) tags based on EPCglobal standards to cases and pallets headed toward three specific Distribution Centers (DCs) in Texas. Virtually all manufacturers and distributors of consumer goods will eventually be impacted by this because Wal-Mart?s moves in RFID are being copied by other retailers.
ARC Research talked to 24 companies that were actively investing in EPC (Electronic Product Code) RFID. Unfortunately, this study shows that for manufacturers and distributors selling to large retailers, RFID has a much lower ROI (Return on Investment) for them than for their retail customers. The situation is made more difficult because the technology is immature and current suppliers of tags are unreliably supplying a poor quality product.













