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When Wal-Mart first announced its ambitious plans to deploy radio-frequency identification (RFID) technology in its supply chain in 2003, the hype around the potential benefits and uses quickly spun out of control.
It was predicted RFID tags would soon be popping up everywhere – on pallets, on individual items in stores, on luggage at airports, in passports, and perhaps sewn into the fabric of children’s clothing so mom and dad could keep an electronic eye on junior.
While progress certainly has been made, and deployments like Wal-Mart’s have gone ahead, the technology has not been adopted as quickly or as widely as initially thought. For the most part, companies have spent the past four years conducting pilots to determine whether the technology can hold up to real world conditions and where the greatest benefits can be gained.
As a result, RFID has taken it a bit on the chin, perhaps unfairly, because it didn’t live up to the initially hype. It appears, however, that it may be time for RFID to move back into the spotlight.
Recently there have been several key announcements of companies moving ahead with full RFID deployments. A week ago European aircraft manufacturer Airbus said it would it would deploy RFID throughout its manufacturing operations to “error-proof and automate” its supply chain while also reducing costs (see the article here). This week Los Angeles-based clothing retailer American Apparel announced it was moving forward with a wide-scale deployment in 17 of its New York City area outlets. The retailer is among the first to place tags on individual pieces of clothing in stores so it can improve in-stock rates and accelerate inventory counts. (See the article here.)
It is expected that further deployment announcements will be made this week as the RFID industry holds one of its largest annual conferences in Las Vegas, RFIDJournal Live. Among the featured speakers is Greg Johnston, executive vice president of Wal-Mart’s Sam’s Club division, who will provide an update on the company’s RFID strategy.
There are bound to be further missteps and setbacks on the RFID front, but like most technology adoption curves, this one appears to be on track to begin its rapid assent up the hockey stick. Stay tuned for more RFID updates.
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