Survey Says Most RFID Tag Users Opt Out of Long Term Value

A survey of companies that tag their products with RFID says most companies apply the tags to satisfy compliance mandates. Customer perceptions of RFID suggest only large companies gain value from the big consulting fees quoted for implementation.
dfars tag
dfars tag
June 21, 2011 - PRLog -- Warrenton, Virginia   In a survey taken of users of RFID tags, SimplyRFID, a supplier of RFID solutions  for government and commercial operations, learned that  65% of buyers of RFID tags do not use the tags for in-house operations.  “Respondents to the survey told us they apply the tags because they are required to do so, in order to sell their products to the Defense Department, WalMart, or Target.  They do not know what the tags could do for them in-house, and don’t use them for internal tracking,” says Eric Paris, a SimplyRFID researcher who conducted the study.   Suppliers to the Defense Department, WalMart, and Target are required to apply the tags as part of these organizations’ own supply chain logistics.  
“The suppliers objected to the RFID tag requirement because they didn’t see the benefit to their own operations,” says Paris.  “They saw the tags as an added cost without a corresponding return on their investment.”    RFID tags can cost from 15 cents to nearly a dollar.  Adding them to products at a case level allows the receiving organization to track their incoming inventory and improve their warehouse operations.  
“The study revealed that the organization applying the tags has a tremendous advantage which they are not using,” says Carl Brown, President of SimplyRFID.  “With the items already tagged and RFID-Ready, the selling organization offers a benefit to any company which buys their products.  The buyer can use a simple RFID handheld reader and any inventory software or even an Excel spreadsheet, to keep track of every item in their possession.  It is a misperception to think these advantages are only gained by a large-scale software development project.”  Brown points out that companies can use this RFID-Ready feature to give them a competitive advantage in the marketplace.  Additionally, he says, they can use the tags in-house to cut their time for inventory counting and asset control.  
More information on the SimplyRFID handheld RFID reader is available at

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Tags:RFID, Rfid Tags, DoD, Rfid Asset Tracking, Rfid Inventory Management, SimplyRFID, Handheld Rfid, Rfid Readers
Industry:Business, Computers, Electronics
Location:Warrenton - Virginia - United States
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