Worley, Intermec Launch Pilot to Study RFID ROI

Consumer goods logistics company to use RFID to test ability to improve supply chain performance

Everett, WA, and Cedar Rapids, IO — February 15, 2005 — Intermec Technologies Corp. and Worley, a third-party logistics (3PL) company, have launched a pilot program to develop and test the implementation of radio frequency identification (RFID) technology within Worley's own facilities.

Worley said it will integrate Intermec RFID warehousing systems into its warehouse management system, Warepak/400, to establish performance benchmarks in a working warehouse environment.

The immediate objective of the RFID integration program is to increase the efficiency of Worley's own operations by improving inventory visibility and labor efficiencies. The knowledge gained also will be used to integrate RFID into the services the company offers its customers to meet future retailer requirements.

"With Intermec, we are researching the use of RFID technology in our warehouse management systems to enhance Worley operations in the areas of yard management, inventory control, shipping and receiving, and labor productivity," said Executive Vice President Blaine Worley. "We believe RFID offers many opportunities to improve the efficiency and profitability of supply chain processes. We expect to be able to demonstrate clear value from RFID in our own real-world environment."

"Demonstrating clear ROI is a critical next step in the roll-out of supply chain RFID technology," said Scott Medford, Intermec's vice president. "Worley's facilities provide a working warehouse site where we can demonstrate how the quality and quantity of work performed on the floor can be improved by RFID."

The RFID program is expected to launch during the first quarter of 2005. Worley and Intermec anticipate the first results to be available this year.

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