"Realistically, we do see item level tagging occurring, but probably not for another eight to 10 years, by which stage volume in terms of the use of EPC tags will increase, and therefore we'll see a reduction in the unit cost of the tag," he says.
Meanwhile, Karlen of Oat Systems enthuses about "tremendous progress" being made. The firm developed a Pathway to ROI for Consumer Products that outlines initial ROI opportunities for CPG companies based on work with the industry’s early adopters. Initial applications include electronic proof--of--delivery solutions to reduce deductions; promotions executions and new product introductions. The company provides the RFID framework for Gillette, Kimberly--Clark, HP, Johnson & Johnson, Kodak, Sherwin Williams and others, and for half the retailers that have issued RFID mandates.
"Given the pace of new retailer initiatives, the tipping point is likely to occur in early 2006," he says. "We are already working with our most innovative CPG companies to roll out RFID deployments to multiple sites and upstream to manufacturing plants."
EPC vs. RFID
What is EPC?
What is RFID?