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R4 Global Solutions Addresses Current State of RFID Adoption at VCF/RCC National Conference
SAN FRANCISCO --(Business Wire)-- Nov. 23, 2004 -- R4 CEO Highlights "Second Phase" Adoption Efforts Targeted at the Retail Store Floor; Progress and Challenges in RFID Adoption in China
Jeff Richards, president and CEO of R4 Global Solutions(TM) (www.r4gs.com), a leading provider of RFID-enabled technology and services, addressed the state of adoption of RFID at of the Vendor Compliance Federation (VCF)/Retailer Compliance Council (RCC) National Conference last week in Scottsdale, Ariz. The conference drew more than 350 retailers and consumer goods manufacturers. Richards provided a front line view of actual RFID implementations from R4's work with a significant percentage of the active RFID initiatives in the Wal*Mart supplier base. In addition, Richards addressed the implications of global RFID deployment using China as an example of a major manufacturing base outside of the U.S.
Richards outlined the current plan for read points and collaboration by Wal*Mart and other retailers that are early adopters, as well as other functions RFID will impact within the retail store floor environment, including Point of Sale (POS), shelf inventory management, stock room inventory management and enabling store personnel to provide better service to customers. "The early phases of RFID adoption are about labor cost savings and laying the basic foundation for adoption of RFID throughout the supply chain. Second and third phases will begin to focus on the retail store floor environment, where the benefits are sizeable. Our work with leading retailers points to a 1-5% (of sales) benefit, both in reduced cost and increased sales. Though it will take several years for significant adoption at the item level, we are seeing an increased push towards retail item-level pilots, both in the U.S. and internationally."
Richards also highlighted progress and challenges in overseas adoption of RFID, including efforts in China, a critical topic for many of the VCF session attendees from the apparel and footwear industries. More than 90% of footwear product is manufactured outside the U.S., with over 75% of this production taking place in China. "Our discussions with individuals working closely with the Chinese government points to considerable progress, but it's not going to be easy. We're dealing with a very different political environment at a strategic level and a very different technology environment at a tactical level. The manufacturing environments themselves do not have much of the basic technology functionality we take for granted here in the U.S. - things like manufacturing and inventory systems which are critical to making RFID work."
In addition, Richards discussed some of the challenges faced by suppliers, including RFID technology that does not yet meet current production line speeds, RFID tag quality, and scalability of new software. Richards also encouraged industry leaders to get involved with EPC Global, saying "EPC Global is doing a terrific job of bringing customers, technology vendors and services leaders together to make decisions which will have long-range implications for your business."
"VCF is a leader in driving best practices and solutions within the retail and consumer goods industries," said Kim Zablocky, founder & co-managing director, Trading Partners Collaboration (parent to the VCF and RCC). "Jeff provided valuable perspective to the audience of leading vendors and retailers at our National Conference using real-world case studies to outline progress in RFID adoption as well as current challenges. As an established industry leader, R4 understands the complexities of integrating RFID technology into the global supply chain as well as the financial and operational benefits to be derived from the successful use of this technology."
About VCF and RCC
VCF is the nation's fastest growing retail supply chain organization. VCF is where vendors and retailers come together to optimize compliance, increase supply chain efficiency, integrate processes and eliminate disconnects to prevent profit loss. Both vendors and retailers benefit from VCF. VCF is based in New York and conducts quarterly conferences throughout the U.S., joining retailers and their vendors in a collaborative environment to better understand routing and order fulfillment compliance requirements. For more information on the VCF and RCC, visit www.vcfww.com.
About R4 Global Solutions
R4 Global Solutions is a leader in delivering EPC-class RFID technology solutions to clients in the Retail, Consumer Packaged Goods, Manufacturing, and Pharmaceutical industries. R4 clients include many of the top consumer goods companies in the U.S., as well as retail and pharmaceutical industry leaders. R4 and the R4 RFID Lab are headquartered in San Francisco, California, with additional locations in Michigan, Virginia, Boston, Atlanta and New Jersey. R4 is a sponsor of EPC Global. For more information visit R4 Global Solutions on the Web at www.r4gs.com or send an email to info@r4gs.com.
R4 Global Solutions, the R4 Global Solutions logo, R4 Enable, R4 Accelerate, RFID Meets ROI and Enabling the Real-Time Value Chain are marks of R4 Global Solutions, Inc. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.
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