Manufacturers don’t expect ROI on RFID
According to a study by the US-based Warehousing Education and Research Council, 55 per cent of manufacturing companies do not expect a positive return on investment from RFID adoption. WERC surveyed its members to find out where the companies stand on this emerging technology. Companies that do not plan to adopt RFID cite costs as the prohibiting factor. Companies that are adopting RFID at the pallet and case level report that there are advantages to the technology, but those gains don’t offset the investment.
Company size matters when it comes to the level of investment in RFID, according to the study. Smaller companies are investing the least, while larger companies are spending the most. Surprisingly, only 14 per cent are actually implementing RFID either in pilots or ongoing operations. The rest are equally divided between those considering using the technology (44 per cent) and those with no current plans to do so (44 per cent). n
5-Jul-2005