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New research carried out by UK supply chain efficiency association, e.centre, shows that despite all the hype over RFID technology, the majority (85%) of UK companies still have no plans to introduce it into their organisations.
The results of the UK survey, which spanned all industry sectors, prompted e.centre to call on companies to embrace RFID technology for its ability to dramatically improve supply chain efficiency.
The survey asked supply chain managers from medium to large enterprises about their views of, and plans for, RFID (radio frequency identification) technology. Despite 88% of those questioned agreeing that RFID was a beneficial technology, only 8% are already using or piloting RFID in their organisation. According to e.center, the results are particularly surprising because a poll conducted in summer 2003 among a sample of FMCG retailers found that 40% of them planned some form of RFID deployment by 2005.
Worrying indifference
"The results of this survey show an alarming, widespread indifference to a technology that can bring significant benefits to business supply chains," commented e.centre's chief executive, Steve Coussins. "It can enable all trading partners in a supply chain, in any industry sector, to track and trace products in real-time and manage stock more efficiently."
The study provides evidence that retailers alone are driving forward the adoption of RFID technology in the UK, with other industries failing to grasp the opportunities for supply chain efficiency. Currently well known retailers, such as Marks & Spencer, and e.centre member, Tesco Plc, are conducting trials but the potential for other industries, such as healthcare, is still vast and largely unexplored.
Down the barcode road
"As with the original uptake of barcodes, the retail sector is leading the way in implementing RFID technology", commented Martin Swerdlow, chief executive for Integrated Product Intelligence (IPI). "A growing number of major retailers have announced plans to begin implementing RFID solutions in end-to-end supply chains. But manufacturers and trading partners need to become more active so that RFID is a benefit to them too, and not just an imposition."
A not-for-profit organisation, e.centre aims to pave the way for successful RFID adoption in the supply chain with the launch of a single, global, open standard for the technology. EPCglobal goes live in the UK in spring 2004, removing the final stumbling block to the technology's integration with bar coding and other business-to-business communication systems. Almost two thirds of the survey's respondents agreed that such a standard would greatly encourage the uptake of RFID technology.
Key findings
Other key findings from the e.center survey included:
- 46% of respondents agree that RFID technology could potentially deliver better results than existing technology.
- 47% of supply chain managers think that the current costs of RFID technology outweigh the potential benefits.
- 78% of respondents believe that privacy will not be an issue for consumers.
"Our poll suggests that we are losing momentum," said Coussins. "We must not lose out when it comes to the final stage of implementation. It is of vital importance that UK companies begin to devise strategies for piloting and implementing the technology in line with the EPCglobal Network standard."
The survey was conducted by an independent market research organisation, and the sample was selected at random among transport, logistics, and warehouse managers of medium and large companies. Some 200 interviews were conducted anonymously by telephone during December 2003.
For additional information:
· Visit e.centre at http://www.e-centre.org.uk
· Visit IPI at http://www.ipi-uk.com
· Visit Tesco at http://www.tesco.com/radiobarcodes
· Visit EPCglobal at http://www.epcglobalinc.org
Source: e.centre
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