ABI: End-User Survey Confirms RFID Moving Beyond Supply Chain Management
September 5, 2007 // Published as a news service by IHS
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Recent analysis from ABI Research found that radio frequency identification (RFID) is being used or evaluated for a growing number of applications across a wide range of vertical industry sectors.
More than 175 organizations worldwide responded to an ABI survey, providing a detailed picture of the current state of RFID adoption and identifying key markets trends, system requirements, expenditures and more.
"The business case and value proposition for RFID is being realized across many types of organizations," said ABI Research director Michael Liard.
"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 [SCM]; other application areas include asset management, security access control and inventory management in closed-loop environments."
While an increasing number of companies said they were using, evaluating or piloting the technology to support a wide number of applications, it remains true in many quarters that compliance is paramount.
Analysts said the single most significant driver for RFID adoption remains the mandates imposed by Wal-Mart, the U.S. Department of Defense (DOD) and, in Europe, the Metro Group.
There's room for growth and opportunity in supply chain-related applications, such as tracking at the pallet, case and item levels.
Not all the survey's respondents, however, use RFID. Analysts said some respondents evaluated RFID, but decided not to deploy the technology. The reasons non-users cited for not deploying or evaluating the technology included limited application relevance, the success of existing automatic identification solutions, concerns about ROI and a lack of clarity regarding RFID's potential benefits.
The results of this end-user research reinforce ABI Research's position that the opportunity for RFID is not limited to SCM or industrial environments. "These survey results mirror the patterns and pace of adoption that we have previously forecast," said Liard. "They provide solid validation for our assessment of the direction of the RFID market."
Source: ABI Research.