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Tandy Brands Certain of ROI from RFID
Tandy Brands Accessories expects a long-term return on investment from its RFID deployment, even in the face of $150,000 annual costs.
Feb 11, 2005—This article was originally published by RFID Update.
February 11, 2005—In response to the oft-heard grumbling that Wal-Mart's RFID mandate ultimately hurts the Top 100 suppliers, some point to the additional 37 Wal-Mart suppliers that willingly committed to meeting the January 1, 2005, deadline. If Wal-Mart's RFID requirements are so unreasonable, they challenge, how is it that so many suppliers volunteered to join in?
It's a good point. Tandy Brands Accessories of Arlington, Texas, is a perfect example of just such a volunteer. The maker of socks, belts, handbags, and assorted accessories owes 34% of its annual sales to Wal-Mart, and management is convinced that the RFID initiative is for the best. Says president and CEO Britt Jenkins, "It'll cut into our profits (in the short-term), but in the long-term it's worth the price." The company has so far spent well under $50,000 on the implementation, and it expects the annual expense of maintenance and tagging to run between $150,000 and $200,000.
It's great to hear such confidence in the potential for RFID to generate profits, but it does make one wonder what Tandy has done differently than so many others who, despite their best efforts, just cannot wring ROI from an RFID deployment.
Dallas Business Journal
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