Reduced tampering and theft, improved collaborative planning also cited in CompTIA survey; technology "over-hyped," says one-fifth of respondents
Oakbrook Terrace, IL September 3, 2004 Expectations are that radio frequency identification (RFID) technology will deliver its most significant benefit through improved inventory management in the supply chain, according to results of a new Web poll released today by the Computing Technology Industry Association (CompTIA).
Better inventory management was cited as the key benefit of RFID by 29.2 percent of the nearly 500 respondents to the poll. Other benefits cited include reduced product tampering, theft and counterfeiting, as well as improved collaborative planning with supply chain partners.
RFID is a wireless data collection technology that uses electronic tags for storing data. Like bar codes, RFID tags are used to identify items. A key advantage of RFID is the non-contact, non-line-of-sight aspect of the technology. While bar codes must be brought close to the scanner for reading, RFID tags are read when they are within the proximity of a transmitted radio signal. RFID tags can be read without line-of-sight scanning or physical contact. RFID is expected to help organizations track things they would otherwise have difficulty tracking, and to track them more accurately.
"Successful companies have recognized the importance of better inventory management," said David Sommer, vice president for electronic commerce at CompTIA. "It is a major source of competitive advantage for a company to know what it has in inventory and where."
In addition to the 29.2 percent of CompTIA survey respondents citing better inventory management as a benefit of RFID, other benefits cited included:
While there are obstacles to overcome before the full benefits of RFID are realized, Sommer cautioned that failure to recognize how RFID will impact business operations could negatively impact a company's ability to compete. "If your customers are mandating RFID usage, you had better be ready to meet their requirements or risk losing them as a customer," he said.
CompTIA, through its Electronics Industry Data Exchange (EIDX) Leadership Group, is engaged in several RFID initiatives for the computer, electronics and information technology (IT) industries. One of these initiatives involves a working group charged with developing supply chain business process models that incorporate RFID and identify potential return on investment at points along the supply chain.
For more information on trends relating to RFID, see the following SDCExec.com articles:
Oakbrook Terrace, IL September 3, 2004 Expectations are that radio frequency identification (RFID) technology will deliver its most significant benefit through improved inventory management in the supply chain, according to results of a new Web poll released today by the Computing Technology Industry Association (CompTIA).
Better inventory management was cited as the key benefit of RFID by 29.2 percent of the nearly 500 respondents to the poll. Other benefits cited include reduced product tampering, theft and counterfeiting, as well as improved collaborative planning with supply chain partners.
RFID is a wireless data collection technology that uses electronic tags for storing data. Like bar codes, RFID tags are used to identify items. A key advantage of RFID is the non-contact, non-line-of-sight aspect of the technology. While bar codes must be brought close to the scanner for reading, RFID tags are read when they are within the proximity of a transmitted radio signal. RFID tags can be read without line-of-sight scanning or physical contact. RFID is expected to help organizations track things they would otherwise have difficulty tracking, and to track them more accurately.
"Successful companies have recognized the importance of better inventory management," said David Sommer, vice president for electronic commerce at CompTIA. "It is a major source of competitive advantage for a company to know what it has in inventory and where."
In addition to the 29.2 percent of CompTIA survey respondents citing better inventory management as a benefit of RFID, other benefits cited included:
- Reduced product tampering, theft and counterfeiting cited by 12.3 percent of the respondents
- Improved collaborative planning with supply chain partners 11.9 percent
- Easier product tracking and recalls 9.0 percent
- Automatic replenishment of parts and products 7.2 percent
- Reduced invoice reconciliation and labor costs on the receiving dock 4.5 percent
While there are obstacles to overcome before the full benefits of RFID are realized, Sommer cautioned that failure to recognize how RFID will impact business operations could negatively impact a company's ability to compete. "If your customers are mandating RFID usage, you had better be ready to meet their requirements or risk losing them as a customer," he said.
CompTIA, through its Electronics Industry Data Exchange (EIDX) Leadership Group, is engaged in several RFID initiatives for the computer, electronics and information technology (IT) industries. One of these initiatives involves a working group charged with developing supply chain business process models that incorporate RFID and identify potential return on investment at points along the supply chain.
For more information on trends relating to RFID, see the following SDCExec.com articles:
- Beware RFID Hype, Analysts Warn (February 13, 2004)
- Manufacturing and Banking Industries to Lead U.S. IT Spending in 2004 (February 12, 2004)
- RFID Integration Services Set for Rise (February 4, 2004)
- Retail Spending on RFID Seen Rising in "Fits and Spurts" (January 8, 2004)
- Retailers to See More RFID Benefits Than Manufacturers Study (November 12, 2003)
- Global RFID Market to be $3 Billion by 2007 (October 1, 2003)
- RFID: Beyond Barcodes (September 3, 2003)
- Who's Buying RFID? (August 22, 2003)
- RFID Picks Up Momentum (July 9, 2003)
- Broader RFID Adoption Seen by 2005 (June 16, 2003)
- Benetton: No RFID Tags in Garments...Yet (April 9, 2003)
- Auto-ID Could Save Billions (February 6, 2003)
