Study: RFID Adoption Moving At Modest Pace

Radio frequency identification (RFID) was supposed to revolutionize operations, only it never materialized. In fact, according to a survey compiled by NCR Corp. and Retail Systems Alert Group, the adoption rate of RFID is still modest primarily because technical and cultural roadblocks continue to impede RFID’s growth.

Among the survey’s findings: retailers are lagging far behind manufacturers in adopting RFID. Only 9% of retailers who responded to the survey have an RFID-implementation timeline. The majority of retailers who responded positively estimated their organization’s overall revenue to increase to $5 billion or more compared to 44% of manufacturers.

Although fewer retailers reported a timeline for implementation, those retailers that have a timeline reported that they are spending more than in 2005, according to survey results.

Among those companies that have a timeline for RFID adoption, most respondents (both retailers and manufacturers) report that they have pilot distribution centers up and running. Manufacturers are focusing their attention on one to 50 product lines, rather than across a broader range of product lines, as was reported in the survey results a year ago.

According to the survey, although there still may be several challenges on the horizon in the adoption of RFID, the outlook is cautiously positive. The awareness level of RFID among C-level executives, directors, and managers has significantly improved.

For more on the RFID study, “RFID: How Far, How Fast?” go to www.ncr.com

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