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Radio Frequency Identification

RFID in Manufacturing Can Boost Productivity

Global growth consultancy Frost & Sullivan finds that the European RFID Markets for Automotive, Aerospace and Industrial Manufacturing generated revenues of $23.7 million in 2005 and estimates this will reach $109.3 million in 2012.

The competitive nature of modern manufacturing is driving manufacturers to reduce costs and adapt business to increasingly demand-oriented systems. In this context, RFID can enhance product availability for customers and boost productivity across the entire production process, said Frost & Sullivan.

However, the firm added, the return on investment (ROI) from RFID deployments is difficult to quantify, as the full benefits of the technology depend on its degree of integration into wider business processes. Difficulty in identifying a clear standalone ROI, coupled with its high implementation cost, poses a significant challenge to prospective entrants into the RFID market.

" As the RFID market starts the transition from technology trial stage toward early adopter phase, a key challenge will be to clearly identify the range of expected benefits," cautioned Frost & Sullivan Research Analyst Rengarajan Srinivasan.

According to the firm, the maximum ROI achievable from the adoption of RFID can only be realized if the designing of business processes allows operation within real-world environments and well-integrated IT infrastructures.

" Manufacturers need to establish a strong business case for implementing RFID systems and develop flexible frameworks for evaluating ROI," advised Srinivasan. " New entrants are likely to have a better understanding of the nature of ROI that is practically achievable from the experience of early adopters and increasing numbers of credible pilot schemes."

Global Trade Management

Identity Authentication, Automation Seen Essential for Global Supply Chain

For many companies, especially small and midsize enterprises (SMEs), the ability to trade globally may well hinge on the extent to which they can authenticate their own identities and those of their business partners, according to a new survey of 127 senior executives worldwide conducted by the Economist Intelligence Unit and sponsored by IdenTrust.