85% of UK firms still shunning RFID technology

“Wake up or lose business,” is the warning from the UK supply chain efficiency association e.centre in the wake of staggeringly low uptake predicted for RFID (radio frequency identification) technology. Its latest research, which covered supply chain managers from medium to large enterprises spanning all industry sectors, finds that 85% of UK companies have no plans to introduce RFID in their organisations despite 88% of them agreeing that RFID is a beneficial technology. Last summer’s poll by e.centre among FMCG retailers found 40% planning RFID deployment by 2005. Yet the organisation found only eight per cent of firms using or piloting RFID. Other top level findings include 46% say RFID could potentially deliver better results than existing technology; 47% of supply chain managers think that RFID costs outweigh benefits; and 78% believe privacy will not be an issue. The results have prompted e.centre to appeal to companies to embrace RFID for its ability to dramatically improve supply chain efficiency, or face the consequences. Steve Coussins, e.centre’s chief executive, says: “The results of this survey show an alarming, widespread indifference to a technology that will bring significant benefits to business supply chains. RFID is here to stay. It will enable all trading partners in a supply chain, in any industry sector to track and trace products in real-time and manage stock more efficiently.” He fears that retailers are driving forward the adoption of RFID while others are simply failing to grasp what could be major opportunities for supply chain efficiency. “As with the uptake of barcoding 25 years ago, the retail sector is leading the way,” says Martin Swerdlow, chief executive of Integrated Product Intelligence (IPI). “A growing number of major retailers have announced plans to begin implementing RFID solutions in ‘end-to-end’ supply chains. “Manufacturers and trading partners need to get active so that RFID is a benefit to them too, not just an imposition.” “The UK has been at the fore of RFID testing and development, and yet the poll suggests we are losing momentum,” says Coussins. “We must not lose out when it comes to the final stage of implementation. It is of vital importance that UK companies begin to devise strategies for piloting and implementing the technology in line with the EPCglobal Network standard.”