Few companies currently deploying technology, but adoption set to increase as ROI becomes more clear, IDC survey reveals
Milan, Italy — January 18, 2006 — Radio frequency identification deployments are still in their very early stages in Western European vertical markets, but adoption is slowly ramping up as more and more companies come to see a return on investment in the technologies to support RFID, according to a new IDC study.0
Just 12.4 percent of companies in the Western European manufacturing, retail/wholesale and logistics sectors were piloting or planning to pilot RFID in 2005, with 5.1 percent implementing it or planning to implement it, IDC found in a recent survey.
"RFID is still in its early stages," said Giuliana Folco, research director for IDC European Vertical Markets. "However, over 17.5 percent of companies in manufacturing, retail/wholesale and logistics are piloting/implementing RFID projects, and more are to come, not only in these sectors, but also in several other industries."
ROI Still an Inhibitor
The study shows that RFID-compliant applications and servers are the key IT areas that require investment in more than 50 percent of companies interviewed by IDC. This is particularly true for discrete and process manufacturing. Warehousing, logistics management and distribution activities will see the greatest impact from RFID. However, a rethinking of the entire value chain is essential for the success of RFID projects.
The study also looked at inhibitors to RFID adoption in Western Europe. A third of the companies surveyed said ROI was the main reason not to adopt RFID.
The "Status of RFID in Western European Verticals" report was based on the results of IDC's European Vertical Market Survey and focuses on RFID adoption in retail/wholesale, manufacturing and transportation/logistics companies with more than 20 employees.
The study covers the percentage of companies piloting, implementing or planning to implement RFID; job functions influencing the RFID process; IT areas of RFID projects requiring investment; key areas of focus in implementing RFID; key business processes affected by RFID; expected benefits of RFID; and reasons for not adopting RFID.
Additional Articles of Interest
— Leading crafts company Creativity Inc. has found that, with a bit of trust and a lot of teamwork, a little consulting can go a long way in addressing supply chain pain points. Read more in "Crafting Success in Supply Chain Transformation," cover story in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
— Successful supply chain executives differentiate themselves — and their companies — from the competition. Here are the skill sets you need to focus on. Read "Critical Skills for Effective Supply Chain Leaders" in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
— Forecasting is not an isolated activity but must become part of an overall set of demand management practices. Supply chain thought-leader Ann Grackin describes the practices that your firm should be developing to improve business performance in "Sensing the Future: Next-generation Practices in Demand Management," in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
Milan, Italy — January 18, 2006 — Radio frequency identification deployments are still in their very early stages in Western European vertical markets, but adoption is slowly ramping up as more and more companies come to see a return on investment in the technologies to support RFID, according to a new IDC study.0
Just 12.4 percent of companies in the Western European manufacturing, retail/wholesale and logistics sectors were piloting or planning to pilot RFID in 2005, with 5.1 percent implementing it or planning to implement it, IDC found in a recent survey.
"RFID is still in its early stages," said Giuliana Folco, research director for IDC European Vertical Markets. "However, over 17.5 percent of companies in manufacturing, retail/wholesale and logistics are piloting/implementing RFID projects, and more are to come, not only in these sectors, but also in several other industries."
ROI Still an Inhibitor
The study shows that RFID-compliant applications and servers are the key IT areas that require investment in more than 50 percent of companies interviewed by IDC. This is particularly true for discrete and process manufacturing. Warehousing, logistics management and distribution activities will see the greatest impact from RFID. However, a rethinking of the entire value chain is essential for the success of RFID projects.
The study also looked at inhibitors to RFID adoption in Western Europe. A third of the companies surveyed said ROI was the main reason not to adopt RFID.
The "Status of RFID in Western European Verticals" report was based on the results of IDC's European Vertical Market Survey and focuses on RFID adoption in retail/wholesale, manufacturing and transportation/logistics companies with more than 20 employees.
The study covers the percentage of companies piloting, implementing or planning to implement RFID; job functions influencing the RFID process; IT areas of RFID projects requiring investment; key areas of focus in implementing RFID; key business processes affected by RFID; expected benefits of RFID; and reasons for not adopting RFID.
Additional Articles of Interest
— Leading crafts company Creativity Inc. has found that, with a bit of trust and a lot of teamwork, a little consulting can go a long way in addressing supply chain pain points. Read more in "Crafting Success in Supply Chain Transformation," cover story in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
— Successful supply chain executives differentiate themselves — and their companies — from the competition. Here are the skill sets you need to focus on. Read "Critical Skills for Effective Supply Chain Leaders" in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
— Forecasting is not an isolated activity but must become part of an overall set of demand management practices. Supply chain thought-leader Ann Grackin describes the practices that your firm should be developing to improve business performance in "Sensing the Future: Next-generation Practices in Demand Management," in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
- More research from IDC.
