March 1, 2004
RFID At What Cost?
What Wal-Mart Compliance Really Means
with Joshua Walker, Charles P. Wilson
Executive Summary (This is a document excerpt)
Wal-Mart's RFID mandate carries ambitious requirements: Suppliers must ensure 100% readability of all case and pallet RFID tags and treat RFID as a strategic initiative versus a cost of doing business. But Wal-Mart can't get what it's asking for, because today's technology market is in constant flux and suppliers lack a near-term business case. What's more: A typical supplier that attempts to comply can expect to spend as much as $9 million on RFID — depending on its distribution network and Wal-Mart volume. The largest expenditures — tag costs and additional warehouse labor — underscore the problems that RFID vendors must solve to help suppliers' efforts. Wal-Mart should narrow the scope of its mandate to make the January 1, 2005, deadline attainable.
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RECOMMENDATIONS
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Forrester interviewed 41 vendor and user companies, including: Alien Technology, Cisco Systems, IBM Global Services, Manhattan Associates, OAT Systems, and Zebra Technologies. In related research on RFID tag costs, Forrester interviewed more than 25 tag and reader manufacturers. Related Research Documents
May 25, 2004 Quick Take
February 4, 2004 Forrester Brief
December 9, 2003 Forrester Brief
October 30, 2003 Forrester Brief
June 12, 2003 Forrester Brief |
Wal-Mart Makes RFID Demands Of Its Top Suppliers
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Original air date: Wednesday, January 24, 2007
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