Supply Chain News Bites - Only from SCDigest

-Aug. 23, 2007


Supply Chain Graphic of the Week: Were 2003 RFID Tag Price Estimates Accurate?


Auto ID Center Saw Low Prices Spurring Widespread Adoption, Higher Prices More Modest Application Growth - Looks Like the More Constrained View was Accurate


By SCDigest Editorial Staff


While RFID has been around for many years, the Auto ID Center at MIT rwas really the catalyst behind the current electronic product code (EPC) form of RFID in use at Wal-Mart, the US Department of Defense, and an increasing number of othe industries and applications. The EPC Global organization subsequently took over many of the efforts originally championed by the Auto ID Center.

We thought it would be interesting to take a look today at a chart produced by the Auto ID center in 2003. As can be seen below, the Center envisioned two potential RFID scenarios: (1) By 2008, EPC tags have come close to reaching the mythical "5-cent" tag, and there would be "fast adoption"; (2) tag prices stay higher, and there is "moderate adoption.

Some may disagree, but it seems to SCDigest that scenario two is the one clearly playing out.

What is your reaction to price predictions of 2003? What scenario do you think is playing out? Let us know your thoughts at the Feedback button below.

Send an Email