In early supply chain RFID deployments, the information flowing back to suppliers has been fragmented and limited. But the recent joint announcement by Wal-Mart and Target that they will share EPC data gathered from their RFID systems with 13 manufacturers who supply them with consumer packaged goods (CPG) marks a significant development.
According to Erik Michielsen, ABI Research''s director of RFID and ubiquitous networks, the data-sharing pilot reinforces the notion that there is a need to consolidate data across fewer platforms to ensure its reliability and interoperability in retail environments. "The joint announcement is a positive signal to the retail and consumer goods markets that leaders in both industries are focused on more cooperative, results-oriented solutions," he says.
The fact that 13 major consumer goods players will be working together with Target and Wal-Mart also reinforces a second important trend in the RFID supply chain. To date, the retailers have driven RFID momentum with mandate announcements and, in the case of Wal-Mart, continued rollout roadmap communication. Michielsen notes, "As analytical tools develop and as CPGs cooperate more with one another, the CPG-retailer relationship will evolve from a retail ''push'' market to a more balanced retail/CPG ''push-pull'' market."
The University of Arkansas'' out-of-stock RFID findings illustrate that CPGs can benefit from RFID. Tag costs are decreasing, data sharing and analysis tools are improving, and the RFID opportunity is becoming clearer and more compelling. As both industry RFID motivations move toward equilibrium, RFID investment will likewise become more substantive and convincing.
Retail and consumer goods RFID deployments involve cooperation, partnership, planning, and integration. The latest release of ABI Research''s RFID Research Service details network infrastructure management opportunities, and profiles the stakeholders. The research analyzes the industry implications of the complex customer and partner relationships behind the seemingly simple public pricing announcements for Gen 2 inlays and labels.