RFID Gains Popularity In Closed-Looped Environments

July 23, 2007
Tracking at pallet, case and item levels.

Although compliance with Wal-Mart, the DOD, and the Metro Group (in Europe) is still the driving force behind RFID usage, closed-looped applications such as tracking at the pallet, case and item levels is gaining.

"The business case and value proposition for RFID is being realized across many types of organizations. The results of ABI Research's 2007 Annual RFID End-User Survey indicate that RFID's opportunity is not limited to open-loop supply chain management; other application areas include asset management, security access control, and inventory management in closed-loop environments," said Michael Liard, ABI Research director.

But everyone is not jumping on the RFID bandwagon and for those companies who haven't chosen RFID, the study found that the reasons include limited application relevance, the success of existing automatic identification solutions already, concerns about ROI and a lack of clarity regarding RFID's potential benefits.

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