RFID chasm : China and Walmart will be crucial
In the current stage of RFID evolution, most of the companies and countries are trying out the technology for operational efficiencies in the supply chain. We can say that the technology is still in the chasm stage. The two aspects which will decide about the paceof integration of rfid in to the mainstream are China and Walmart .
- Walmart by it very mandate that by 2005 all its suppliers should be rfid enabled is good enough sign for the technology to mature. RFID technology firms,suppliers,etc are hurrying to put the rfid infra in place.
- China Factor :The imports by mega-retailers such as Walmart(12% of all the products),Metro AG, Carrefour, Tesco and others, the China-sourced products by retailers adds up to a substantial number. China is already gung ho about rfid and wants to showcase the technology in 2008 olympics. Hence the manner of rfid adoption will be crucial
There is no doubt that the above two factors will largely decide the adoption of the technology.However there are some other issues which should be taken in to consideration
- Moving to item level tagging from pallet level tagging
- Data Synchronization between the supplier ,the vendor and other players in the EPCglobal network
- Addressing Privacy level issues about the EPC data with the firm and amongst trading partners
- Worldwide consensus is absent on the frequency standards used for various applications