Compliance Is King: Mandates Driving Retail CPG Adoption

With "slap and ship" dominating to date, market for radio frequency identification technologies "still a work in progress," VDC argues

Growth Curve

  • 2005

    Hardware: 66.1
    Software: 14.5
    Services: 80.3

  • 2010

    Hardware: 606.9
    Software: 227.3
    Services: 681.0

Tagged Shipments Still Low

  • A large percentage of mandated suppliers limited their deployments, meeting minimal mandate requirements (predominantly through manual "slap-and-ship" installations);

  • Technology performance (i.e., read rate accuracy, dense reader mode operation, etc.) was not stellar at the beginning of 2005, but improved as the year progressed — most notably through the introduction of higher-performing Gen2-compliant products and firmware upgrades;

  • The ISO-18000-6C standards approval process has been more protracted than expected, delaying Gen2 product development and user adoption (particularly outside North America); and,

  • Most of the companies adopting RFID because of mandates initially find it challenging to measure an internal return on investment (ROI). ROI is realized when real-time RFID information becomes part of the enterprise's underlying business processes — a level the majority of purely compliance-based adopters have not yet reached.
"Another Interesting Year"

Additional Articles of Interest

holistic look Time for RFID: Applying RFID in the Supply Chain

future of the RFID market The O'RFID Factor: A 'No Spin' Look at Where Radio Frequency Identification Is Headed Supply & Demand Chain Executive

radio frequency identification (RFID) this link extensive listing