European logistics companies lead the way in RFID

Staff -- Logistics Management, 1/24/2006

BOSTON—Over 23 percent of logistics/transportation companies in Western Europe are planning to pilot RFID, while 19.3 percent in discrete manufacturing, 16.9 percent in process manufacturing, and 14.2 percent in retail are planning to do so, according to a new report by market research firm IDC.

The study “The Status of RFID in Western European Verticals,” took place during March and April of 2005 with 286 respondents—primarily CIOs and IT managers—from across Western Europe.

Key study findings include:

• Over 66 percent of all respondents cited improved inventory management and control over inbound logistics as key benefits.
• Nearly 70 percent of respondents from companies in discrete and retail/wholesale saw loss prevention as another important potential value.
• Roughly 80 percent of process manufacturers and 67 percent of logistics/transport providers cited pallets tagging as a primary goal.
• 54 percent of discrete manufacturers expressed an interest in using RFID to track returnable assts (containers, trailers, pallets, and reusable packing).
• Less than one percent of companies that have run pilots using RFID technology have not followed up with implementation.

This survey’s results contradict those from a study done by U.K. analyst Analytiqa, which found that reluctance among European third-party logistics to deploy RFID was threatening to slow down RFID deployment in supply chains across Europe.
(This report is available on Analytiqa’s website. Click here.)

The full IDC report, released in December of 2005, is available on the IDC website for $4,500. Click here