RFID News
Staff -- Purchasing, 4/21/2005 2:00:00 AM
One size does not fit all. A new report from ABI Research found that many retailers are finding problems and frustration when they try to apply RFID because of a major disconnection between RFID manufacturers—many of them relatively new companies—and retailers—many of whom don't under the benefits of RFID.
The report says that retailers cannot simply follow Wal-Mart's implementation model because every supply chain is different. And in their frustration, many shippers are now turning to their usual consulting companies for help, which may not be considered adopters of new technologies. "[Consultants] are often content to let ideas mature before getting involved," the report says.
"Wal-Mart's approach is creative," says ABI analyst Sara Shah. "It's very worthwhile for them, which is why they're pushing forward on schedule. Other retailers follow, thinking that Wal-Mart's business case will apply just as well to them. But it may not work, because every business and every supply chain is different."
The report also says that RFID technology suppliers need to educate themselves about retailing, and to develop solutions to retailers' problems, not just one-size-fits-all products.
Software maker SAP and microchip maker Intel are working together to encourage companies to adopt RFID technology, the companies said recently. The collaboration allows firms to integrate data collected from RFID chips either directly into Intel-based servers or through SAP's Netweaver software platform. The joint effort "aims to make RFID technology easier to use and help companies overcome the common hurdles they face in creating viable business cases for RFID implementations."
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