RFID: who hinders your development?

People always ask what are the main obstacles to the application of RFID technology, especially the technology related to electronic product code EPC. Many believe that there is a lack of clear enterprise cases and technical costs. However, RFID Journal experts believe that time and confidentiality are the main obstacles to the application of RFID technology.
Cost is not a major problem. No matter how high the cost of technology is, if it can bring considerable profits, it will certainly be applied in enterprises. The lack of clear enterprise cases is unconvincing. Many companies understand that applying EPC Technology in their supply chains can bring considerable profits, for example, reduce inventory shortage rate, increase product sales, improve tracking and positioning systems, and recall capabilities. Time is probably the biggest obstacle to the application of RFID technology. Early EPC Technology Applications usually took three to four years to achieve the expected goal. Various testing methods must be used to ensure that the technology works for specialized applications in a specific environment. Conducts multiple on-site tests, develops or adjusts applications in cooperation with software companies, and establishes network infrastructure to ensure wider application and simplify business processes.
It does not take long for the followers, because the hardware and software are ready-made, and it has been confirmed that the profit margin is large and the technology route is available everywhere. For example, manufacturers can read about how Kimberly-Clark tracks its sales promotion process to learn about typical cases of using EPC Technology to increase sales of inventory promotion products. Retailers can also use the Wal-Mart Case to learn how they can use EPC Technology to reduce inventory shortage rates. Even if the EPC Technology has so many advantages, followers still need to test the tag on their products and the ability to continuously read tags in a specific environment. They need to build network infrastructure to process RFID tag data, install and process data, and combine applications with RFID systems. Finally, to use the data, they need to change the business process of the enterprise. All steps take time. The second problem is confidentiality, which hinders the application of RFID technology. Because many companies are engaged in a variety of businesses, unless customers force them to adopt EPC technology or the profit margin brought by the use of EPC Technology is large enough for them, they will not adopt EPC Technology. Like Kimberly-Clark, Metro Group, Procter & Gamble and Wal-Mart, they have taken the lead in adopting the EPC Technology and share their success stories with you. However, many companies are reluctant to do so.
Of course, other new technologies face the same problems, not just the EPC Technology. At the beginning, companies are willing to share the success brought about by the adoption of new technologies with their peers, so that competitors can understand what they are currently doing. This is understandable, but these companies also need to consider the benefits of confidentiality. The benefits of large project confidentiality include cost advantages over competitors, or increasing sales of inventory backlog products. However, these are short-term benefits because competitors also know how to successfully apply the EPC Technology. However, the application of advanced technologies cannot immediately turn into a true competitive advantage. The company's competitiveness mainly lies in brand loyalty, price and product quality.
The disadvantage of Project confidentiality lies in the slow technical application, which limits the company's potential benefits. Companies that adopt new technologies earlier are willing to share their success stories with their peers, and they will benefit themselves and the entire industry. Bar code technology is expected to save the supermarket industry $17 billion each year. For example, bar code technology can be used to obtain data more accurately and effectively. In addition, the wide application of this machine has led to a sharp increase in the demand for tags and readers, resulting in a decline in their prices and the benefits of everyone.
Through the use of EPC Technology, manufacturers and retailers can improve product sales to reduce inventory shortage rate or ensure continuous supply after opening the market. If neither party is willing to discuss these benefits, the result will be only two losses. Why? Few manufacturers are willing to add tags to the retailer's products. If they need to do so, they are also trying to delay time, and few retailers are willing to adopt this technology, worried that the producer has gained the same benefits from other retailers.
I once asked a senior executive director of Wal-Mart this question. He believes that the company is willing to share their experiences with its peers to promote the application of technology, because they know that this will keep them ahead of competitors. The long-term benefits of sharing successful experiences far exceed those of short-term benefits.