Meta Group: ''There is no positive ROI within the first two years for suppliers''

March 09, 2004

ZDnet/Meta Group: Building the RFID Business Case:

There is no positive ROI within the first two years for suppliers focusing on complying with the Wal-Mart RFID mandate. That is the result of an analysis of client interactions centered on the forced adoption and implementation of Wal-Mart's RFID plans in open supply chains. However, that conclusion is not a reason to abandon RFID trials. Much of the negative ROI is related to immature standards and technology, a lack of economies of scale, and limited adoption by members of the supply chain. As these issues are resolved, and as costs shift from manufacturers to packaging suppliers that embed RFID labels in packaging, the ROI equation will shift toward the black. The bleak picture painted by Wal-Mart suppliers underscores our belief that organizations need to fully understand the technology and examine all business processes where RFID technology could be applied. Without a broader view, organizations risk becoming soured on RFID and will miss higher-return, higher-impact applications.
The article goes on to provide good advice for organizations implementing RFID now and in the next years. Definitely worthwhile reading.

Posted by andersja

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