RFID only at early stages
in Europe — IDC

16 Jan 2006

The use and deployment of radio frequency ID (RFID) in Western Europe is still at the early stages with 12.4pc of companies in the region’s manufacturing, retail, wholesale and logistics sectors piloting or planning RFID last year, with 5.1pc either implementing it or planning to implement it.

RFID-compliant applications and servers are the key IT areas that require investment in more than 50pc of companies interviewed by tech analysis player IDC.

This is particularly true for discrete and process manufacturing. Warehousing, logistics management and distribution activities will be most impacted by RFID. However, a rethinking of the entire value chain is essential for the success of RFID projects.

The study also looked at inhibitors to RFID adoption in Western Europe. A third of the companies surveyed said return on investment was the main reason not to adopt RFID.

“RFID is still in its early stages,” said Giuliana Folco, research director at IDC European Vertical Markets. “However, more than 17.5pc of companies in manufacturing, retail/wholesale and logistics are piloting/implementing RFID projects and more are to come, not only in these sectors but also in several other industries.”

By John Kennedy