The Cost of Wal-Mart's RFID Edict (RFID Journal)

[Dave Farber <dave () farber net>]

> Date: Thu, 11 Sep 2003 13:47:55 -0400
> From: Robert Daffin <rsd3414 () ACRretail com>
> Subject: The Cost of Wal-Mart's RFID Edict (RFID Journal)
> To: "'Dave Farber'" <dave () farber net>
>
> For IP, if you deem it worthy.
>
> Is it any wonder why Wal-Mart discontinued the trial deployment of RFID at
> the shelf level.  It might take longer than anyone expected for RFID to
> reach critical mass, even if only for inventory tracking purposes, unless
> Wal-Mart gives some on prices with their vendors to pick up some of the RFID
> tab (which they are unlikely to do).
>
> <snip>
>
> AMR Research says Wal-Mart's RFID tagging mandate could cost suppliers more
> than $2 billion.
>
> By Jonathan Collins
>
> Sept. 10, 2003 - Wal-Mart's mandate to its top 100 suppliers to deliver RFID
> tagged products by 2005 is set to cost those consumer package goods (CPG)
> manufacturers a total of more than $2 billion. But so far, benefits to those
> companies are hard to find, according to a new report from AMR Research.
>
> "CPG manufacturers can't afford to eat that cost of deploying RFID to
> Wal-Mart's specifications. Something's got to give," says Kara Romanow,
> senior analyst and co-author of the AMR report "RFID in 2005: The What Is
> More Important Than The When With Wal-Mart Edict." That could well mean
> passing on costs to consumers with higher prices.
>
> <snip>
>
> http://www.rfidjournal.com/article/articleview/572/1/1/
>
> -R

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