How much is the application cost of RFID technology?
how much is the cost of applying RFID system? This question, like "who wants to be a millionaire", immediately aroused the interest of all people who want to develop scientific prediction of cutting force and shaft delamination and uncut fiber yarn burrs, and use RFID technology. According to the two-month market survey conducted by Forrester Research, Cambridge and Ma market research company, to apply RFID technology to meet the requirements of retailers, for a typical supplier with three product distribution centers, the operation of this project and the annual system maintenance cost are about $9million
through exchanges with dozens of suppliers, Forrester learned that only 25% of them were said to be able to meet Wal Mart's requirements in January 2005. Christine Overby, a senior analyst of the company, said, "in the short term, most suppliers are not ready, and the technology itself is still immature. The industry still lacks professional software or technology suppliers to help the retail industry effectively implement RFID technology."
the cost of applying RFID technology is basically the same for different suppliers. Christine Overby added that the main challenge they face is the production of RFID tags. Based on the current production process and production volume, it accounts for 80% of the total cost of RFID technology application for each supplier
forrester suggested in this survey report that those suppliers who want to apply RFID technology should also take the labor cost of supply chain management into account in their annual budget in the first year of the implementation of the project, because at the beginning of the application of this new technology, the technology of suppliers' automatic labeling and embedding RFID tags into packaging materials is not mature, and it needs some manual operation to improve it
according to the current production status and planned output of RFID tags, Forrester also stressed that suppliers should not expect the unit price of each RFID tag to be less than 40 cents when making their recent business plans
both commodity manufacturers and retail suppliers believe that the production of RFID tags, Liu Wengong reported that the "civil aircraft materials industry development alliance preparatory work report" must continue to decline, so that the technology can be more widely popularized. Forrester added that in order to maximize the benefits of commodity tracking, suppliers should apply RFID tags at the beginning of commodity production, rather than just using RFID tags that are fixed on the frame of the machine in a certain direction in production. The research report also suggests that Wal Mart can redefine the scope of products related to the application of RFID tags. To the greatest extent, if the input current is limited to products containing less metal or liquid, because these substances will affect the reading rate of RFID tags
however, it also points out that it is indeed difficult to use RFID tags on a single commodity, and this process requires redesign and budget analysis. "The early application of RFID technology, such as Gillette, is the only company to apply RFID technology in this way in the next year. In the short term, for most suppliers, it is the most realistic way to label the pallets or containers of goods in the commodity distribution center at one time and then transport them away."
many companies are constantly looking for better solutions. Although some progress has been made, the current RFID tag labeling method is still manual labeling. Although it may need more industry consulting and technical experts' assistance, and the cost will be very high, most people believe that automatic labeling is necessary in the future, which is also the inevitable trend of the application and development of RFID technology. □
source: Laien, Beijing Zhongbao Ansheng technology training Co., Ltd
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