Walmart RFID: R4 Global Services Answers the Call for WalMart RFID Compliance
From SAN FRANCISCO--(BUSINESS WIRE)--April 22, 2004-- R4 Accelerate(SM) Solution Enables WalMart Suppliers to Meet Schedule II Pharmaceutical RFID Compliance Initiative
R4 Global Services(TM) (www.r4gs.com), a leading solutions provider of RFID-enabled technology and services, today announced the R4 Accelerate Solution for Schedule II Compliance to meet the needs of the 18 pharmaceutical suppliers working to fulfill the requirements of WalMart's Schedule II RFID initiative. As of the March 30th compliance target date set by WalMart, a number of suppliers had not met the overall requirements for RFID compliance on Schedule II pharmaceuticals. U.S. DEA Schedule II pharmaceuticals are highly regulated prescription narcotics such as Ritalin and Morphine. The R4 Accelerate Solution is a simplified, pre-packaged suite of hardware, software and services that provides all the necessary components required to meet Schedule II compliance in eight weeks or less...
The pharmaceutical market is one of the most attractive application areas for RFID technology due to the relatively high cost of pharmaceutical product and readily apparent benefits to corporations and consumers. For example, a case of Schedule II pharmaceutical product might cost $40,000 - a high enough price point to justify the cost of RFID technology. Additionally, industry analysts estimate that up to 10% of the U.S. drug supply is counterfeit. Thus, the ability to track and trace pharmaceuticals in the supply chain has the potential to save suppliers hundreds of millions of dollars per year, in addition to saving human lives and reducing overall cost.
"Given the timeline, complex nature of suppliers' systems and necessary configuration required to integrate RFID into existing business processes, some delays in RFID compliance were to be expected," said Ryan Lange, senior vice president of sales for R4 Global Services. "At this point, suppliers are looking for complete, pre-packaged solutions versus components of solutions which are time intensive and costly to deploy. Our work with leading suppliers to WalMart, as well as with Schedule II and generic pharmaceutical product lines, gives us the expertise and vendor relationships needed to deliver an efficient, cost-effective solution to pharmaceutical suppliers. We also wanted to dispel the myth that compliance is a 'million dollar exercise' - we are able to deliver a complete compliance package in under eight weeks for less than $100,000, in many cases, depending on the volume of product being shipped to WalMart."
The R4 Accelerate solution for Schedule II compliance addresses both the short-term need for basic Schedule II compliance with WalMart, and the longer term need of developing a scalable plan of attack and technology architecture for the use of RFID in the pharmaceuticals supply chain. Schedule II RFID compliance has several basic requirements, including:
-- ePC compliant UHF RFID tags, applied at the item level
-- The ability to collect and store RFID tag information for future use
-- The ability to synchronize product data with UCCnet
"We believe the overall move towards the use of RFID in the global supply chain, though in its infancy, remains on track," said Jeff Richards, CEO of R4 Global Services. "There have certainly been challenges along the way, but WalMart is an incredibly efficient and focused organization. Schedule II utilization of RFID is an excellent precursor to overall adoption as the benefits to corporations and consumers start to become apparent."
Pricing for the R4 Accelerate Solution for Schedule II compliance ranges from $50,000 - $175,000 depending on the number of shipping locations involved and the volume of product being shipped to WalMart, as well as all hardware, software and services needed to meet compliance requirements. R4 has developed the offering in conjunction with its key alliance partners, including RFID technology vendors Alien Technology and Matrics. Suppliers purchasing the R4 Accelerate package will meet Schedule II compliance requirements in eight weeks or less.
About R4 Global Services
R4 Global Services is a leader in delivering RFID technology solutions to clients in the Retail, Consumer Packaged Goods, Manufacturing, Transportation & Logistics, Defense and Pharmaceutical industries. R4 solutions enable clients to realize the full benefits of RFID and RFID-related technologies, including increased sales, increased visibility and control, decreased labor costs, and dramatic improvements in key business processes such as inventory management and supply chain management. R4 and the R4 RFID Lab are headquartered in San Francisco, California, with additional locations in Michigan, Virginia and New Jersey. R4 is a sponsor of EPC Global. For more information visit R4 Global Services on the Web at www.r4gs.com or send an email to email@example.com.
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