Seeing clear path to benefit, the RFID mandates roll in

A Web poll released in September by Computing Technology Industry Association (CompTIA), Oakbrook Terrace, Ill., cites better inventory management as the key benefit of RFID by 29.2 percent of the nearly 500 respondents. "Successful companies recognize the importance of better inventory management," says David Sommer, VP of electronic commerce for CompTIA. "It is a major source of competitive advantage for a company to know what it has in inventory, and where."

Meanwhile, a survey conducted in part by mobile solutions vendor Wavelink at the September Frontline Expo and Conference in Chicago revealed 79 percent of the 135 survey respondents plan to pilot or implement an RFID solution. Of this number, 22 percent have implemented a pilot RFID program, while 42 percent will implement in the next 12 months. The remaining 21 percent of respondents plan to implement an RFID solution within 12 to 24 months.

The top reasons cited in the Wavelink survey included improving the ability to track goods, meeting customer requirements, and receiving greater efficiencies in shipping and receiving. What follows gives a look at how the technology adoption is shaping up at various retailers, as well as the government:

Wal-Mart Stores: The retailer's Top 100 suppliers—plus 37 volunteers—are working toward a Jan. 1, 2005 deadline to tag cases and pallets destined for a Wal-Mart distribution center (DC) and six stores in the North Texas region. Beyond that, Wal-Mart wants tagged product going into 250 stores and six DCs by June 2005; into 600 stores and 13 DCs by October 2005; and by January 2006, to have its next top 200 suppliers begin tagging cases and pallets.

Best Buy: The electronics retailer will require its major suppliers to begin applying EPC tags to cases and pallets by Jan. 2, 2006. It expects the same from all its suppliers by May 2007.

Target: Its top suppliers will be required to apply EPC tags on pallets and cases sent to select regional DCs beginning late spring 2005, with all cases and pallets tagged by May 2007.

Metro Group: In November 2004, the German retailer will begin a comprehensive pilot, during which time 100 suppliers will affix RFID tags to their pallets and transport packages for delivery to 10 central warehouses and approximately 250 stores.

Department of Defense (DoD): Tagging requirements take effect Jan. 1, 2005, but will be phased in beginning with supplies headed to two distribution depots and containing certain classes of goods, including clothing and packaged operational rations. In January 2006, the tagging will expand to a wider range of goods headed into 32 sites.