"We know a lot of our customers—CPG manufacturers and retailers—are wrestling with
item-level tagging. We could use a dialogue across the constituencies," Lanza says. "IDC is offering some leadership there, and I believe it will help the
RFID community in gaining clarity." Hewlett-Packard believes participation in the council will help it work with its retailer customers to ensure RFID technology provides the supply-chain visibility they need.
"We (HP) want to hear what issues our customers have," Lanza says. "It's an opportunity to discuss RFID in an open forum, and I see that as a benefit." While other organizations, such as
EPCglobal, the
American Electronics Association (AEA) and the
National Retail Federation (NRF), already help retailers and manufacturers exchange RFID information, the Manufacturing Insights council will focus specifically on electronic products.
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Pete Abell
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According to Abell, the Executive Council will have about 50 members, includes major retailers and suppliers of such products as appliances, audio and video equipment, computers, media and entertainment products, and lawn and garden equipment. Manufacturing Insights' analysts and consultants will also be part of the council. These analysts and consultants have expertise in specific areas, such as container tracking.
In addition to focusing on RFID use in the supply chain, council members will be researching how RFID technology can improve the collection in factories. For example, at many manufacturers, workers responsible for inputting manufacturing data must stop what they are doing to key in information or use a wand to get data about a particular part going into a finished product. With this practice, errors can occur as well.
In an RFID-equipped factory, on the other hand, parts—or the bin containing those parts—are tagged, and that data can then be
read and written into the master tag on the chassis of the product. "This reduces return-logistics costs, helps in determining and stopping warranty fraud, recalls can be managed much more accurately, etc.," Abell says. RFID can also be used to supply consumers with warranties or rebates at the point of sale automatically, he says. In addition, they will examine how best to use RFID to reduce product counterfeiting, and to improve end-to-end supply-chain visibility, inventory accuracy and management.
The general membership fee for the council is $45,000. There will be no charge for companies in the relevant product categories to attend the inaugural meeting's general sessions on Sept. 28, at the Westin Hotel, in Waltham, Mass.