CompTIA Identifies RFID Opportunities

Association to report findings on ROI sources in manufacturing, shipping and receiving processes

Association to report findings on ROI sources in manufacturing, shipping and receiving processes

Oakbrook Terrace, IL — November 18, 2004 — Elusive sources of return on investment (ROI) in radio frequency identification (RFID) technology are coming into focus for companies in the computer, electronics and information technology industries, according to CompTIA, the Computing Technology Industry Association.

CompTIA announced today that an association working group studying how to incorporate RFID into supply chain business processes has identified a series of opportunities to improve manufacturing, shipping and receiving practices; and whether the ROI on such investments will occur in the short-, mid- or long-term.

The group will report on its findings at the CompTIA Electronics Industry Data Exchange (EIDX) Leadership Group meeting December 1 and 2 in Menlo Park, Calif.

RFID is an important issue for our members, especially when it comes to identifying sources of ROI, said David Sommer, vice president, electronic commerce, CompTIA. So far most of the ROI from RFID usage is at the end of the supply chain, at the retail level. We are beginning to identify opportunities for ROI earlier in the supply chain. This effort will help organizations move from merely implementing RFID technology to meet customer mandates to actually gaining value through better business processes.

Uncertainty over the ROI from deploying RFID has kept many organizations from widely deploying the wireless technology, which will allow them to track inventory with greater precision. The increased flow of information made possible by RFID should help companies improve forecasting and planning with their suppliers and customers.

In theory, the cost-savings and strategic benefits of RFID are huge, Sommer said. But the cost of deploying the technology is also huge, ranging from several hundred thousand dollars for small implementations to several million dollars for large deployments. That's why it is so important for companies to understand where an investment in RFID makes the most sense.

CompTIA said that members of the EIDX Leadership Group are committed to addressing electronic business interoperability issues across business boundaries and vertical markets to advance the strategic and global advancement of e-business across all industries.