Date: Thu, 11 Sep 2003 13:47:55 -0400
From: Robert Daffin <rsd3414@xxxxxxxxxxxxx>
Subject: The Cost of Wal-Mart's RFID Edict (RFID Journal)
To: "'Dave Farber'" <dave@xxxxxxxxxx>
For IP, if you deem it worthy.
Is it any wonder why Wal-Mart discontinued the trial deployment of RFID at
the shelf level. It might take longer than anyone expected for RFID to
reach critical mass, even if only for inventory tracking purposes, unless
Wal-Mart gives some on prices with their vendors to pick up some of the RFID
tab (which they are unlikely to do).
<snip>
AMR Research says Wal-Mart's RFID tagging mandate could cost suppliers more
than $2 billion.
By Jonathan Collins
Sept. 10, 2003 - Wal-Mart's mandate to its top 100 suppliers to deliver RFID
tagged products by 2005 is set to cost those consumer package goods (CPG)
manufacturers a total of more than $2 billion. But so far, benefits to those
companies are hard to find, according to a new report from AMR Research.
"CPG manufacturers can't afford to eat that cost of deploying RFID to
Wal-Mart's specifications. Something's got to give," says Kara Romanow,
senior analyst and co-author of the AMR report "RFID in 2005: The What Is
More Important Than The When With Wal-Mart Edict." That could well mean
passing on costs to consumers with higher prices.
<snip>
http://www.rfidjournal.com/article/articleview/572/1/1/
-R