Amy Roach Partridge is assistant managing editor of Inbound Logistics . E-mail her at apartridge@inboundlogistics.com
SUPPLY CHAIN TECHNOLOGY
by Amy Roach Partridge
RFID: A Tale of Two Cities
T he current market for RFID supply chain applications reminds me of the opening line of Charles Dickens’ A Tale of Two Cities . According to RFID vendors, the market is poised for strong growth as active RFID solutions pick up speed, equipment prices begin to drop, and the industry continues to make progress adopting global standards. But RFID end users are still largely hesitant to embrace the technology, citing too-high tag prices, uncertain ROI, and an onerous implemen- tation process. Best of times, worst of times, anyone? Some evidence to support the “best of times” view: A substantial number of RFID offerings and capabilities have debuted recently, in a wide range of applications. The Port of Oakland, for example, announced it will use active RFID tech- nology to meet homeland security requirements. Horizon Services Group, the technology subsidiary of carrier Horizon Lines Inc., is working to create RFID reader infrastructure on U.S. highways to devise a national network for real-time intermodal
container tracking. SAP released a new set of RFID technologies that adds prod- uct trading and authorization capabilities. And DHL completed a successful pilot using RFID to monitor temperature-sensitive pharmaceutical products during transport; the company plans to bring the service to market in the fall. The list goes on. News releases boasting RFID product updates, launches, and new partnerships and pilot programs fill my in- box daily. END USERS: ADOPT OR AVOID? But who is using these new applications? The tale reads more “worst of times” from the end-user perspective. Three years ago, when the Wal-Mart RFID mandate kicked into effect, forcing its top 100 suppliers to ship cases and pallets of goods tagged with RFID, it seemed a sure bet that shippers would flock to RFID solutions. Following right behind Wal-Mart, the Department of Defense (DoD), Target, and Albertsons also placed RFID mandates in motion. But what followed was not a mass march
Break out your high-school summer reading list – we turn to
Charles Dickens to analyze the current RFID market.
July 2007 • Inbound Logistics 41
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