October 01, 2005

The early-adopter advantage

Companies that adopted RFID early on have now acquired the necessary expertise to provide consultation to other users. They are able to leverage their experience for financial gain because there are very few vendors who provide an integrated RFID solution. Customers have to co-ordinate between different vendors for tags, readers, middleware, etc. Examples of early adopters who now consult others include Scottish Courage Brewing that has formed Trenstar in collaboration with the integrator KTP. Scottish Courage has the experience of tagging 2 million beer kegs and it does the same for other companies now. International Paper, which adopted RFID for its warehouses, is into the selling of RFID systems for warehousing. Tag suppliers face a peculiar situation; on one hand they wish to invest in improving their productivity so that when the demand eventually happens, they are in a position to cater to it, on the other they wish to tread with circumspection in investing a large amount of capital, but in doing so they risk losing business if the demand materializes.

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