more on Gillette, Wal-Mart drop plan for radio ID chips

[Dave Farber <dave () farber net>]

------ Forwarded Message
From: Robert Daffin <RSD3393 () ACR2000 COM>
Date: Fri, 11 Jul 2003 09:28:45 -0400
To: "'dave () farber net'" <dave () farber net>
Subject: RE: [IP] Gillette, Wal-Mart drop plan for radio ID chips

For IP, if you like.

Don't make too much of Wal-Mart's decision to back off from deploying RFID
at the shelf level.  At current cost for RFID tags (10 cents per tag, even
in bulk), it doesn't make business sense to do so at this time.  Wal-Mart is
still insisting that all of their major vendors begin using RFID on the
pallet and case level, for inventory tracking purposes.  This application is
a much more cost-effective use of the technology.  Over time, as vendors and
wholesalers begin using them, costs for the tags will come down.  Once
prices are low enough (fractions of a cent per tag), we'll see them showing
up on the shelves.  This decision is merely an effort to put the cart back
behind the horse.

Also keep in mind that Gillette is still moving forward with Tesco (UK) and
Metro (Germany) to test RFID at the shelf level, so it is not as if this
project is dead.

-R


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