If retailers and suppliers don’t clean up their data, investing millions in RFID will be a complete waste of time, experts have warned.
Speaking at a conference in London, Deloitte head of European consumer business Lawrence Hutter said RFID had to be underpinned by good quality, consistent data.
He added: “Several major manufacturers say they are doing RFID trials and have hit major issues because they are describing the same things differently.
“People are facing basic issues on data quality.”
They were also struggling to sort through the torrent of data generated by RFID tags to identify what was relevant, said SAP consultant Ian Scott, who has been working with Metro on its RFID project in Rheinberg.
He said: “The critical issue is what information is relevant and how it should be presented to staff so that they can deal with
it. The rest of the data generated by tags is just noise.”
Although suppliers were finding ways to make a business case for RFID within their own four walls, this would be difficult in an environment when, typically, only one retail customer was demanding RFID tagged goods, warned Hutter.
“If 15% of your business is with one retailer, you may have to depalletise goods destined for that retailer, RFID-tag each case and then rebuild your pallet,” he said. “This will generate significant inefficiencies and may have to be outsourced to third parties.”
However, the sceptics should not lose sight of the benefits RFID could bring, particularly in clothing, fresh produce and bonded products, he added.
Here, RFID could deliver a clear return on investment through better availability, reduced wastage and prompt and accurate payment of duty, respectively.
Elaine Watson
Speaking at a conference in London, Deloitte head of European consumer business Lawrence Hutter said RFID had to be underpinned by good quality, consistent data.
He added: “Several major manufacturers say they are doing RFID trials and have hit major issues because they are describing the same things differently.
“People are facing basic issues on data quality.”
They were also struggling to sort through the torrent of data generated by RFID tags to identify what was relevant, said SAP consultant Ian Scott, who has been working with Metro on its RFID project in Rheinberg.
He said: “The critical issue is what information is relevant and how it should be presented to staff so that they can deal with
it. The rest of the data generated by tags is just noise.”
Although suppliers were finding ways to make a business case for RFID within their own four walls, this would be difficult in an environment when, typically, only one retail customer was demanding RFID tagged goods, warned Hutter.
“If 15% of your business is with one retailer, you may have to depalletise goods destined for that retailer, RFID-tag each case and then rebuild your pallet,” he said. “This will generate significant inefficiencies and may have to be outsourced to third parties.”
However, the sceptics should not lose sight of the benefits RFID could bring, particularly in clothing, fresh produce and bonded products, he added.
Here, RFID could deliver a clear return on investment through better availability, reduced wastage and prompt and accurate payment of duty, respectively.
Elaine Watson
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