REACHING FOR ROI ON RFID
Compliance continues to drive most RFID implementations. But Ford, International Paper and Gillette have found ways to cut costs and improve efficiencies.
IMAGE ILLUSTRATIONTHE "SLAP-AND-SHIP" MODEL that most manufacturers use to comply with military and retailer-driven RFID (radiofrequency identification) mandates isn't producing the type of investment returns that would warrant voluntary use of the technology.
In fact, less than 25% of the 650 respondents to the INDUSTRYWEEK/IBM 2005 Value-Chain Survey published last September said they have an RFID tagging strategy. High tag prices-averaging 30 cents per passive tag but falling-and poor tag readability are major reasons why manufacturers appear skeptical about RFID's benefits, according to an October 2005 AMR Research report on RFID in the consumer-products industry.
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