RFID Gazette

By June, the U.S. Department of Defense will have finalized its technology requirements for RFID deployment by suppliers. A conference to be held in Washington, D.C. on April 6-8 will give suppliers a last chance to shape those requirements. The DoD has set January 1, 2005 as the deadline for its 43,000 suppliers to place passive RFID tags on all pallets and cases, as well as single items worth $5,000 or more.

According to the RFID Journal:

"The U.S. Department of Defense says that in October, it will publish the details of a new contractual clause for suppliers agreeing to deliver supplies with passive RFID tags, according Ed Coyle, Chief, Logistics Automatic Identification Technology Office for the DOD. ...

"According to Coyle, the department’s RFID pilot at the Norfolk Ocean, Fleet Industrial Supply Center in Virginia is already being expanded to include EPC tracking of shipments to all the U.S. Navy’s ships. In addition, the pilot is already trusted to create the only transaction record."

From PR Newswire:

Printronix Inc. adapts new technologies to create innovative solutions, including radio frequency identification (RFID) "smart label" printers.

"... the leading integrated supply-chain printing solutions manufacturer announced today that it has certified 10 systems integrators and value-added resellers to sell Printronix's RFID (radio frequency identification) solutions and support end users with their RFID project planning and deployment strategies.

"'Printronix was the first manufacturer with an UHF, Class 1 smart label solution available commercially to help Wal-Mart, the Department of Defense, their suppliers and other retailers conform to RFID specifications. We continue to maintain our leadership position because of the great partnerships we've formed, which allow us to offer customers end-to-end RFID solutions,' said James B. McWilson, vice president, sales, the Americas, Printronix." Read more

points out that suppliers implementing RFID technology will not see quick returns on investment, since the cost of the ID tags will continue to be higher than the desired $0.05 target. Rather, manufacturers will view the expense of ID tags as a necessary cost to continue business with Wal-Mart or the U.S. Department of Defense.

"Mark Engle, director of IT at Campbell Soup Co. in Camden, N.J., speaking here at this week's RFID Journal executive conference, said his company views the incorporation of the technology as 'tactical in nature' to meet the requirements of major customers such as Wal-Mart. 'You're not going to get ROI immediately' from using the tags to help track products in the distribution chain, Engle said. ...

"An executive from Matrics Inc. in Columbia, Md., who declined to be identified, said that tag costs in volume now 'could be in the range of 18 to 35 cents each.'"

Sun Microsystems is currently developing end-to-end RDIF solutions for major retailers like Wal-Mart and its suppliers, says Juan Carlos Soto, the director of advanced development.

eWeek reports:

"According to Soto, RFID technology was now becoming inexpensive and vendors like Sun had a mandate from large retailers like Wal-Mart, which estimates that automating the receipts of its supplier goods into its warehouse could save it $6 billion to $8 billion, he said.

"Sun's current RFID offering included hardware, software, services and test centers, the first of which would be launched in Dallas, Texas in early May. These centers would allow customers to verify that their RFID solutions would work with retailers like Wal-Mart."

CNET News reports:

"Oracle discussed plans on Tuesday to develop RFID middleware, joining rivals IBM, Microsoft and others in the race to release software programs specially designed to handle the deluge of data that RFID systems are expected to produce. The information technology systems most companies use today are not equipped for a world in which billions of objects report their whereabouts in real-time, Oracle and its competitors say." Read more

PR Newswire reports:

"Matrics Inc., a global leader in the design and manufacture of Radio Frequency Identification (RFID), today announced the introduction of a breakthrough device that incorporates RFID multi-protocol reader technology with enhanced network features. ...

"The AR 400 RFID Reader will integrate easily into a customer's existing network infrastructure, while the AR platform is designed to be easily upgraded as new standards evolve in the marketplace, protecting our customers' investment. Customers will be able to manage and service their RFID readers through their internal network or remotely, including via the Web. This will dramatically reduce the time and maintenance costs associated with managing RFID systems." Read more

According to Information Week:

"Checkpoint Systems Inc. is readying to provide customers Electronic Product Code-compliant radio-frequency identification services for their supply chains. The company has agreed to purchase 100 million EPC-compliant devices from UHF RFID system manufacturer Matrics Inc. for integration into client supply-chain applications.

"The EPC/RFID Enterprise Solution will give customers a migration path from case- and pallet-level applications to item-level applications in the store." Read more

According to silicon.com:

"Civil liberties groups from both sides of the Atlantic have joined forces to oppose the proposed introduction and cross-border sharing of biometrics and RFID in more than one billion passports worldwide.

"Human rights organisations from Europe, North America, Australia and Asia have sent an open letter to the International Civil Aviation Organisation (ICAO) railing against plans to create an international 'identity register' that would force the inclusion of biometrics and controversial RFID tracking tags in all passports by 2015. ...

"If the ICAO approves it, facial mapping and tracking tags would become mandatory, with fingerprinting also on the drawing board, depending on the preferences of individual governments."

And according to BBC News, "Micro-chipped passports are due to be introduced in the UK in the middle of 2005."

Forrester Research's report, "RFID: At What Cost?" estimates RFID start-up costs at approximately $9 million for a typical Wal-Mart supplier. Bad news for Wal-Mart: Forrester estimates that only 25% of suppliers will be able to meet the January 1, 2005 deadline.

According to Business Wire:

"'There is no business case for most suppliers in the short term,' says Forrester Research Senior Analyst, Christine Overby. 'The technology is not ready and there is a lack of deep expertise in the industry to help suppliers implement RFID.' ...

"The report recommends that Wal-Mart redefine the scope of its RFID mandate, by narrowing the scope of products to those with limited amounts of metal and liquid." Read more

Currently retailers are expected to benefit from cost savings at suppliers' expense. German research company Soreon says that manufacturers are footing the bill in their new research report, "Saving Cash: RFID - What does it bring to the table?"

According to silicon.com:

"The rollout of controversial barcode-replacement RFID tracking chips is set to be hit by delays because of a power battle between retailers and suppliers about who pays for the technology.

"Retail firms can expect returns on investment of up to 187 per cent by using RFID technology but suppliers will be left to bear the brunt of the current high cost of transponders attached to goods at the beginning of the supply chain, according to new research." Read more