News | September 22, 2004

Survey Reveals Exploding Interest In RFID

Survey from Frontline Expo 2004 indicates widespread plans for RFID implementation in the coming year despite concerns around high cost and standards

Kirkland, WA -- Attendees at last week's Frontline Conference and Expo indicated widespread and rapidly growing interest in the deployment of RFID, despite concerns over integration, cost, and an early, untested market. The survey, conducted by Wavelink Corporation in conjunction with Frontline Solutions Magazine and Frontline Solutions Conference and Exposition, queried IT decision makers from a variety of industries including manufacturing, retail, transportation, and the government sector.

Majority of respondents plan to implement RFID
Results revealed that 79% of the survey respondents plan to pilot or implement an RFID solution. Of this number, 22% have already implemented a pilot RFID program, while 42% will implement in the next 12 months. The remaining 21% of respondents plan to implement an RFID solution within 12 to 24 months. The majority of these respondents said that the operations impacted by RFID incorporate wireless technology. The top reasons cited for implementing RFID included improving the ability to track goods, meeting customer requirements and receiving greater efficiencies in shipping and receiving.

In addition, the majority of respondents planning to implement RFID anticipate incorporating or have already incorporated the automated data collection applications that will enable them to take advantage of the dynamic information from RFID tags within their existing inventory, warehouse and supply chain processes. Nearly two-thirds of the respondents plan to use or are already using automated data collection applications for inventory management, 50% for warehouse management and nearly 40% for supply chain management.

Significant concerns around RFID
The survey also revealed a critical need to address key concerns associated with RFID, including high cost, an early, untested market and lack of sophisticated software to integrate RFID with other business applications like supply chain management and ERP systems. Of those respondents currently piloting or planning to pilot RFID in the next 2 years, nearly 60% saw cost as a primary concern, 42% worried about the lack of standards around RFID, 36% were concerned about the early, untested market and 30% were concerned by integration issues. These concerns mirrored the top reasons cited by the respondents not planning to implement RFID.

"Organizations see the benefits in RFID but they need a realistic and cost effective way to integrate this new technology with their existing systems and applications," said Dave Bullis, president and CEO of Wavelink. "Wavelink's leading Emulation and Studio products already run in thousands of mission critical supply chain environments and will enable these customers to develop RFID applications that integrate RFID simply and cost effectively. The results of this survey demonstrate the need to continue to educate the market on technologies like Wavelink that can ease customers into RFID today and safeguard their investments in the future."

Source: Wavelink Corporation

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