UK: Food and grocery industry sees benefits from RFID - survey
The majority (68%) of the UK's food and grocery industry believe RFID (radio frequency identification) will deliver better benefits for the industry, including greater speed and efficiency in the stock operations, better tracking of products throughout the chain and enhanced forecasting, according to a new survey.
In a recent survey food and grocery think tank IGD asked how retailers are planning to use the technology and what it means for suppliers.
The survey found that overall the industry knows what RFID is and understands it, with 45% saying they have above average or excellent understanding and 42% average. Only 2% have none at all.
Despite 68% of the UK's food and grocery industry believing RFID will deliver better benefits for the industry, only 39% of respondents have currently been approached by a trading partner to undertake RFID.
When respondents were asked what the most important factors are for RFID, cost came out on top. In addition 53% believe that the cost of RFID currently outweighs the benefits, however 32% are as yet undecided. This is creating the main barrier to wider adoption, as there seems to be lack of understanding of the return on investment and quantifying the true cost of implementing an RFID tag, IGD said.
Despite the concern about cost, 65% of respondents think RFID will be widespread in between three and five years. This is in recognition of time required for the technology costs to come down, for the standards for the tag to be fully adopted and for the technology to be fully tested in a live trading environment.
Around 63% say it will affect the consumer with many mentioning better availability. But other potential benefits were also cited, for example "RFID could trigger automated payment systems in-store eradicating the need for consumers queuing up at the checkout. This would vastly reduce the average time for shopping".
The full survey findings will be published at the end of June. For more information, click here.
Not content with pocketing one in every three pounds spent on groceries in the UK, the supermarket giant Tesco has now become the first British retailer to smash the £2 bn ($3.78bn) profit barrier. Ho...
Tesco, the UK's biggest supermarket chain, has today (Tuesday) reported a 20.5% rise in pre-tax profits to £2.029bn (US$3.84bn) for the 52 weeks ended 26 February 2005....
UK supermarket giant Tesco is planning to open a further 40 stores in central Europe, according to the Financial Times Newspaper....
US retail giant Wal-Mart Stores Inc, says it will open two outlets in Beijing this year, and at least one more store next year, according to an Asia Pulse report....
Overall US produce sales are soaring, but supermarkets are still losing market share to Wal-Mart, according to government figures....
UK supermarket Tesco will reveal a record £2bn (US$3.74bn) profit next week, according to the London Evening Standard newspaper....
UK supermarket Sainsbury grew faster than Wal-Mart's Asda in the twelve weeks to 27 March 2005, the first time that has happened for ten years, according to figures from market researchers TNS....
US retail giant Wal-Mart today (Thursday) said it expects sales growth for the first quarter, which runs to the end of April, to be at the low end of its predicted 3% to 5% range. ...
- General Mills sales woes continue - analysis
- Why personalisation will take-off in US food
- Comment: Meal kits in US - don't believe the hype
- US food next wave on display at Winter Fancy Food
- Analysis: Chocolate sector's deforestation pledge
- Kraft Heinz cuts jobs in US, Canada
- Brazil seeks to cool concerns over meat probe
- Lactalis fails to hit threshold to delist Parmalat
- US meal delivery service Blue Apron buys BN Ranch
- UK food companies to miss sugar target