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Report: No RFID Business Case for Manufacturers
According to a report released last week by AMR Research, consumer products manufacturers are still finding it difficult or impossible to economically justify wide-scale RFID deployments.
Oct 12, 2005—This article was originally published by RFID Update.
October 12, 2005—According to a report released last week by AMR Research, consumer goods manufacturers are still finding it difficult or impossible to economically justify wide-scale RFID deployments. The report, entitled RFID and CP Manufacturers: Still Battling To Find the ROI, is based on interviews with 20 "Tier 1" consumer products, pharmaceuticals, consumer electronics, and discrete manufactures.
Aside from the umbrella conclusion that widespread RFID still isn't justified, AMR found the following:
One area in which RFID can also provide benefits is electronic proof-of-delivery (ePOD), which, according to the report, "would enable manufacturers to reduce paperwork and the cost associated with the proof-of-delivery process, as well as improve cash flow based on quicker payment." Unfortunately, for reasons unexplained, retailers have not been willing to pursue this with manufacturers.
Ultimately, AMR cites technology immaturity and unreliability, the dearth of RFID data analysis tools and methodologies, and high tag cost as the leading impediments to wider adoption by manufacturers. Until these issues are resolved, the report suggests manufacturers begin figuring out how to work with the new RFID data as well as improve collaboration with the retailers.
The full report available here to AMR clients
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