Adopt RFID before customers make you

27.04.2006

Improvements in efficiency for the participating companies are also of interest, said Hartley. But these are difficult to predict in advance.

'As you get into the process, you tend to find efficiency improvement in areas where you weren't expecting it,' he said. Obvious areas, though, will be in time-saving through hands-free operation (not having to scan barcodes manually); efficiencies in labor costs and in warehouse management, with a resulting decrease in loss, shrinkage (a euphemism for in-house theft) and misplacement of goods.

Hartley said it's hard to put a finger on reasons for the slow progress of RFID adoption in New Zealand. Small market size is probably a factor. But, sensitivity to cost is probably another. RFID tags and readers are perceived as expensive, but, in the past year, or so have fallen dramatically in price as improving technology and economies of scale begin to bite.

'About a year ago, a tag would still have cost 40-50 US cents on average,' he said. 'Now that's down to about 10 cents.'

GS1 NZ is hoping for a government grant, and expect a decision in the next two weeks.