The Global Commerce Initiative, a user group of manufacturers and retailers committed to the use of GS1 standards to improve the smooth running of supply chains, has sounded a warning about the use of RFID in 'direct store delivery', where supermarkets, convenience stores, and other retail outlets are replenished directly from the manufacturer, rather than through retailers' distribution centres.
According to this story on RFID Update, 94 percent of the retailers and suppliers surveyed say return on investment (ROI) is a high or prohibitive obstacle to RFID implementation in DSD operations, and most companies feel it will remain an obstacle for at least seven years.
Full details of the survey are expected to be available shortly on the GCI website and from Intermec Technologies which sponsored the research.
The conclusions reported in the article - unfortunately there is no corroboration yet on the GCI site - do not seem to affect the ongoing use of RFID in retail warehouse delivery operations. According to the article, suppliers and retailers should "pursue RFID for warehouse delivery operations before they pursue it for DSD."
Technorati tags: Global Commerce Initiative, Intermec, RFID Update, convenience stores, supermarkets, manufacturers, retailers