RFID Technology Future

The Committee on Energy and Commerce, Mr. William Galione, Vice President and General Manager Marketing and Sales Americas, Philips Semiconductors, Radio Frequency Identification (RFID) Technology: What the Future Holds for Commerce, Security, and the Consumer, Subcommittee on Commerce, Trade, and Consumer Protection ...

... "Adoption of RFID technologies is spearheading revolutionary gains in supply chain management, allowing businesses to improve supply chain logistics and customer service. Major retailers -- including co-panelist Wal-Mart and other organizations such as the Department of Defense -- that manage huge inventories are leading the supply chain transition to RFID technology. The Wireless Data Research Group predicts that the RFID market for hardware, software, and services is expected to increase by a 23 percent compound annual growth rate worldwide from more than $1 billion in 2003 to about $3 billion in 2007. According to analyst firm IDC, RFID spending for the U.S. retail supply chain will grow from $91.5 million in 2003 to nearly $1.3 billion in 2008. This increase is due in large part to the mandates by leading retailers and the U.S. government to incorporate the technology, and also to increasing RFID adoption in many other application areas. A recent report by AMR Research on the supply chain results achieved by early adopters of RFID technology in the retail and consumer packaged goods arena showed cost savings of 5 percent of sales. This included savings of 1 percent of sales due to reductions in product loss. The retailers also reduced their expenses by 65 percent in the receipt of goods arena and 25 percent in stocking. RFID tracking of pallets and shipping cases -- from the manufacturer, to the warehouse, to the distribution center, to the final destination -- is expected to deliver increased efficiency, more timely and accurate management of inventory, greater responsiveness to product recalls, and reductions in theft and counterfeit goods entering the retail arena. Pharmaceutical companies are also planning to use RFID systems to ensure the quality of their goods. " ...