Indirect Channel Distribution on the Rise for RFID Transponders

Increasing need for "solution providers" will drive greater sales through VARs, system integrators, VDC predicts


Increasing need for "solution providers" will drive greater sales through VARs, system integrators, VDC predicts





2005
Direct:
Indirect:

2010
Direct:
Indirect:



Influx of Solution Providers





  • OEM/private label channels are more widely used for shipments across regional markets, with larger RFID manufacturers shipping their products to partners for further packaging and customization; however, shipments through VAR/SI channels are expected to seize the largest share of the market over the long term due to software and services revenues;


  • Dealer/distributor channels account for the smallest share of hardware revenues, largely due to the low value-add offerings of dealer/distributors and their interest in moving boxes (which is difficult with non-standardized, non-off-the-shelf products). Dealer/distributor channels are widely being used for transponder shipments to support applications such as animal identification, security/access control cards and automobile immobilization; and,


  • A primary issue currently facing the RFID industry is a general lack of qualified RFID resellers and integrators that can effectively market, sell and implement EPC supply chain solutions; however, vast channels exist for closed-loop, traditional application markets such as security/access control, contactless smartcards, library systems, fixed-asset tracking in specialized sectors (i.e., health care), etc.


http://www.vdc-corp.com/aidc/rfid.asp


Additional Articles of Interest

aging transportation infrastructure world trade growth story

near-perfect fill rates Managing a Global Supply Chain in a 'Flat' World Supply & Demand Chain Executive



  • Enhance Your Experience.

    When you register for SDCExec.com you stay connected to the pulse of the industry by signing up for topic-based e-newsletters and information. Registering also allows you to quickly comment on content and request more infomation.

Already have an account? Click here to Log in.

Enhance Your Experience.

When you register for SDCExec.com you stay connected to the pulse of the industry by signing up for topic-based e-newsletters and information. Registering also allows you to quickly comment on content and request more infomation.

OR

Complete the registration form.

Required
Required
Required
Required
Required
Required
Required
Required
Required
Required
Required