RFID in Packaging

RFID holds much promise to address known (and maybe even some yet unknown) problems throughout the supply chain. Solving some of these problems, or at least reducing their negative impact, can lead to significant revenues/savings for retailers and consumer products companies alike. In a presentation titled “RFID in the Packaging World,” Dr. Peter Harrop, chairman of IDTechEx, cites several targeted areas for RFID’s impact:

• Annual CPG shrinkage of $60 billion of $3 trillion turnover (ECR Europe)
• 75 percent of retail product cost is “getting it there” (MIT)
• Spoilage of 20 percent of foods throughout the supply chain (FDA)
• Counterfeit product, with industry estimates of 15 percent in perfumes and 10 percent in pharmaceuticals, for example
• Retailer stockouts costing 6 percent of sales (Procter & Gamble)

In his presentation, Dr. Harrop points out some of the benefits that can be achieved by both pallet/case-level RFID tagging and item-level tagging, along with some information on RFID implementations.

IDTechEx’s “RFID Smart Labels USA 2007” conference being held in Boston February 21 and 22, 2007 will focus on the challenges and opportunities that RFID offers. For more information on this conference, visit www.smartlabelsUSA.com.