Most manufacturers don’t expect ROI on RFID
published: cw 21, 2005 in Supply Chain Technology & RFIDAccording to a study by the Warehousing Education and Research Council (WERC), 55 percent of manufacturing companies do not expect a positive return on investment from RFID adoption. WERC surveyed its members to find out where the companies stand on this emerging technology. Companies that do not plan to adopt RFID cite costs as the prohibiting factor. Companies that are adopting RFID at the pallet and case level report that there are advantages to the technology, but those gains don’t offset the investment.
Company size matters when it comes to the level of investment in RFID, according to the study. Smaller companies are investing the least, while larger companies are spending the most. Surprisingly, only 14 percent are actually implementing RFID either in pilots or ongoing operations. The rest are equally divided between those considering using the technology (44 percent) and those with no current plans to do so (44 percent.)
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