Half of retailers and manufacturers expect RFID to have a high return
most investigators believe that RFID technology will be beneficial in the supply chain, but there are still disputes about the implementation time, and pointed out that there are obstacles
according to the survey report released by Accenture (NYSE: ACN) a few days ago, nearly half of the manufacturing and retail executives surveyed in Asia expect that the investment in radio frequency identification system (a subminiature chip with wireless communication capability, RFID in English, radio frequency identification) will bring high returns
the results of questioning 100 executives in Australia, China, Japan and South Korea showed that 45% of the respondents expected that the investment in RFID technology would bring high returns. Among them, Korean executives are the most optimistic, and about three quarters (72%) of Korean executives are expected to achieve high returns. Japanese respondents seem to lack confidence in the value of RFID technology, and only 16% of Japanese executives believe that they can achieve high returns. Slightly more than half (56%) of Chinese executives and one third (36%) of Australian executives also said they expected high returns on their investment in RFID technology
Gao Junwei, vice partner of Accenture China's product manufacturing industry, said, "In terms of customers and competitors, the application of radio frequency identification tag (RFID) technology is still in its infancy in China, but it is an opportunity for those innovative enterprises. They can start to consider making full use of this indication error technology called experimental machine measurement system in their strategy and operation, so as to stand out in the competition."
overall, 40% of the respondents believe that the greatest benefits of RFID technology will be mainly reflected among multiple organizations, not just within the organization. Although respondents from Australia, Japan and South Korea pointed out that they are most optimistic about the benefits of RFID technology to the extended supply chain, 50% of Chinese executives believe that the value of RFID technology is mainly reflected within the organization
"focusing on the extended supply chain rather than all aspects will certainly promote manufacturers, distributors and retailers to form a new level of vision and cooperation," said Lyle Ginsburg, managing partner of technological innovation in product manufacturing industry of Accenture
respondents pointed out that the main advantage of using RFID technology is to increase transparency in production and inventory. More than half of the executives said they hoped that RFID technology could benefit from transportation and receiving productivity (57%), order accuracy (52%) and revenue processing process (52%). Two thirds of the executive directors (64%) pointed out that RFID technology will bring great benefits to inventory management, while 56% believed that the condition module: the experimental process control data and sample conditions can be made into a module to improve the accuracy of raw material reception, and 57% believed that RFID technology will benefit in tracking commodity circulation
"we have a feeling that the implementation of RFID technology is imperative. Even if there is no executive order to enforce it, the executives of each country are also studying how to improve their business to improve their competitiveness," said Josef Mueller, partner of Accenture product manufacturing Asia Pacific region, "Although we will still see significant differences between different regions, in order to maximize benefits, we must first focus on the supply chain, which is a common theme in Asia and the world."
the survey also found that the two biggest obstacles to the implementation of RFID technology are cost and lack of standards. More than two thirds (70%) of the respondents believe that the total cost of implementation is a big obstacle, and almost the same number (67%) believe that the cost of RFID tags and card readers is a big obstacle, while a little less (62%) of the respondents believe that the lack of standards is an obstacle to the implementation of wireless RFID technology
from a regional perspective, managers in Japan and South Korea are most concerned about the cost of RFID technology. The vast majority of Japanese respondents (88%) believed that the price of labels and card readers was the biggest obstacle to implementation, and 80% of them specifically mentioned the implementation cost. Similarly, 80% of South Korean respondents believed that the cost of labels and card readers was the main obstacle, and 68% mentioned the total cost of implementation. The respondents in China and Australia are also concerned about the implementation costs and standards. Among them, 68% and 64% respectively listed the costs and standards as the two major obstacles to implementation
as for the progress of the implementation of RFID technology in various countries, about one third (34%) of the respondents said that they were currently conducting business cases of RFID technology. Less than one fifth (16%) of the respondents indicated that they were conducting pilot research, and 1% of the respondents said that they were implementing radio frequency identification technology projects. Half (51%) of the respondents indicated that they planned to launch RFID technology projects in 2007 or later
RFID technology will be first applied in inventory and warehouse management. Overall, more than three quarters (79%) of the respondents put inventory management first, followed by warehouse management (70%), order execution management (60%) and out of stock management (59%). Respondents in Japan and South Korea clearly believe that inventory management will be the biggest beneficiary of RFID technology. 88% and 92% of respondents in the two countries respectively regard inventory management as the first choice for the implementation of RFID technology
survey method this survey was conducted in June 2004, and only 100 manufacturing and retail executives from Australia, China, Japan and South Korea were designated to ask questions about the poor oil return of buffers. All respondents were decision makers of RFID technology at the department level, regional level or higher
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