OAKBROOK TERRACE, Ill., Sept. 1, 2004 -- Radio frequency identification (RFID) will deliver its most significant benefit through improved inventory management in the supply chain, according to results of a new web poll released today by CompTIA, the Computing Technology Industry Association.

Better inventory management was cited as the key benefit of RFID by 29.2 percent of the nearly 500 respondents to the poll.

"Successful companies have recognized the importance of better inventory management," said David Sommer, vice president, electronic commerce, CompTIA. "It is a major source of competitive advantage for a company to know what it has in inventory and where."

RFID is a wireless data collection technology that uses electronic tags for storing data. Like bar codes, RFID tags are used to identify items. A key advantage of RFID is the non-contact, non-line-of-sight aspect of the technology. While bar codes must be brought close to the scanner for reading, RFID tags are read when they are within the proximity of a transmitted radio signal. RFID tags can be read without line-of-sight scanning or physical contact. RFID allows organizations to track things they would otherwise have difficulty tracking, and to track them more accurately.

CompTIA, through its Electronics Industry Data Exchange (EIDX) Leadership Group, is engaged in several RFID initiatives for the computer, electronics and information technology (IT) industries. One of these initiatives involves a working group tasked with developing supply chain business process models that incorporate RFID and identify potential return-on-investment at points along the supply chain.

Other anticipated benefits of RFID, according to the results of the CompTIA web poll, include:

-- Reduced product tampering, theft and counterfeiting - 12.3 percent

-- Improved collaborative planning with supply chain partners - 11.9 percent

-- Easier product tracking and recalls - 9.0 percent

-- Automatic replenishment of parts and products - 7.2 percent

-- Reduced invoice reconciliation and labor costs on the receiving dock - 4.5 percent

Less than one-fifth of respondents (19.5 percent) said RFID will have little or no impact and that the promised benefits of the technology are being over-hyped.

While there are obstacles to overcome before the full benefits of RFID are realized, Sommer cautioned that failure to recognize how RFID will impact business operations could negatively impact a company's ability to compete. "If your customers are mandating RFID usage, you had better be ready to meet their requirements or risk losing them as a customer," he said.

About CompTIA

CompTIA is a global trade association representing the business interests of the information technology industry. For more than 22 years CompTIA has provided research, networking and partnering opportunities to its 20,000 members in 102 countries. The association is involved in developing standards and best practices, and influencing the political, economic and educational arenas that impact IT worldwide. More information is at www.comptia.org.

CompTIA
Steven Ostrowski, 630-678-8468
sostrowski@comptia.org