RFID supply chain mandates launched by a few big retailers such as Wal-Mart and Target are now well documented and understood. But many other retailers are finding problems and frustration when they try to apply RFID in the same way, according to a new report from ABI Research.

     So why is there a problem? Because, according to ABI Research analyst Sara Shah, there''s no "cookie-cutter approach" to RFID implementation. In its new study, ABI highlighted a disconnect: RFID manufacturers - many of them relatively new companies - don''t understand retail, and many retailers don''t understand how RFID can benefit them; this leaves them frustrated and slows down market adoption. 116.30.151.81 This article is copyright 2005 UsingRFID.com.

     The report, ''The RFID Retail Market'', examines how retailers are adopting RFID and the ways they will realise an ROI, as well as the possible business process changes it will entail.

     "Wal-Mart''s approach is creative," said 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."

     Naturally, many retailers have turned to their usual consulting companies - often one of the largest half-dozen. But, according to the report, those big consultancies aren''t often early adopters of new technologies, instead allowing new ideas to mature before getting too heavily involved.

     "Beyond supply chain management, it''s anybody''s guess as to how many ways RFID can be used. Known applications include security and ''backdoor theft'' prevention, contactless payments, advertising, and promotions," said Shah, who advises retailers to consider smaller consulting firms where they''ll find people who will find new ways to use RFID technology. "Unfortunately," Shah concluded, "Many of those small creative integrators lack the resources to execute system-wide rollouts for large clients. For their part, RFID vendors need to educate themselves about retailing, and to develop solutions to retailers'' problems, not just one-size-fits-all products."

 

 

 

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