Consumer Goods Manufacturers Will Spend an Average of $6.9 Million on EPC RFID in 2005, Says Yankee Group.BOSTON -- To deliver an acceptable ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). , companies need to explore RFID's value beyond meeting Wal-Mart's mandate or as a bar code replacement Consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and manufacturers, which will spend an average of $6.9 million each this year, need to put their ROI into perspective looking beyond generic benefits, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Yankee Group (the Yankee Group, Boston, MA, www.yankeegroup.com) A major market research, analysis and consulting firm founded in 1970 by Howard Anderson. It provides general consulting and strategic planning in the computer and communications field. research note, The Seven Things Suppliers of Wal-Mart and Large Buyers Should Do About EPC (1) (Entertainment PC) See HTPC. (2) (Electronic Product Code) A standard code for RFID tags administered by EPCglobal Inc. (www.epcglobalinc.org). RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. . "RFID deployed within a company's internal supply-chain operations provides a wealth of information about inventory dwell time The time cargo remains in a terminal's in-transit storage area while awaiting shipment by clearance transportation. See also storage. and movement. Enterprises need to identify what they can improve and how RFID can help them streamline processes and improve material flow within and between their facilities," says Michael Dominy, Yankee Group Director of Enterprise Services. "Most companies focus only on the cost to incorporate RFID technology into their supply chains. It takes much more effort to identify how RFID can drive business benefits. Supply-chain professionals must be creative and do the hard work required to understand how to drive inventories down further and streamline processes and inventory flow using RFID within their internal and extended supply chains." The Yankee Group recommends those enterprises still debating the merits of the technology start using it, but do so with a manageable project limited in scope and complexity, not the company's biggest or most difficult supply-chain problem. The initial project should represent a supply-chain issue within the enterprise's internal operations that can be solved without substantial systems integration. PRESS CONTACT For interviews contact Michael Dominy, mdominy@yankeegroup.com THE YANKEE GROUP (http://www.yankeegroup.com) The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe. |
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