@ Supply Chain Management


RFID ROI — Not what it seems

I was having a recent discussion over lunch with an executive from a specialty grocer out west who admittedly didn’t know what the big hoopla was about RFID. The mother of all grocers and supermarketers is into it in a big way but he didn’t know what the point of it was except maybe for pallet level or truckload level tagging. I suggested – maybe its volume throughout the entire supply chain that one surmises without accurate and up to date information, supply chain managers might feel quite out of the loop and without much control. Dr. Peter Harrop has an article RFID ROI – Not what it seems that makes several points. Here’s a sampling:

Ask someone in the street about RFID and they may say it is tagging prisoners. However, those in the industry generally talk about putting labels on pallets and cases necessitated by the commendable commands of leading U.S. retailers, which see sales increase and costs decrease as a result of their suppliers doing such tagging.

However, he says, if you follow the money and not the talk:

However, if we look at the major spend and potential spend on RFID, we get a very different picture. The global spend on RFID labels for pallets and cases alone

Category: RFID, Supply Chain Management, Supply Chain News


One Response

  1. RFID produces many benefits that are not exploited within a supply chain due to lack of intergation. Should RFID data be tightly integrated across an entire supply chain, in to the ERP systems of trading communities, then the resultant benefits would be profound.

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July 2006