Wal-Mart Brings RFID to the Masses
Avery Dennison Corporation (NYSE: AVY), CYBRA Corp. (OTC:CYRP), and I.D. Systems, Inc. (NASDAQ:IDSY) are in a great position to benefit from increased interest in the Radio-Frequency Identification market, as evidenced by Wal-Mart’s recent plan to implement expansion of RFID utilization. Starting this month, Wal-Mart plans to use RFID tags to better manage its inventory, which could lead to other retailers doing the same.
The Convenience of RFID
Unlike traditional bar codes that require line of sight to each tracked object, multiple RFID tags can be read at the same time enabling an entire case or pallet to be read at once. According to studies of an RFID pilot at American Apparel, RFID used to track clothing items can also result in a 14% increase in sales. At the same time, RFID can help reduce labor costs by up to 30% and inventory costs by up to 15%, according to data from the report.
Many retailers focused on niche markets have already begun implementing RFID to improve their inventory management and enhance their financial results. At the same time, many big box retailers, like Wal-Mart, have been conducting research and exploring their options. Finally, with Wal-Mart ready to roll out the technology, widespread adoption among mainstream retailers could soon be helping to improve efficiency and maintain competitive advantage.
Mark Gatehouse, director of replenishment for Wrangler jeans maker VF Corp. said, “View this as an investment in where things are going. Everyone is watching closely because no one wants to be at a competitive disadvantage, and this could really lift sales.” Indeed, many retailers have already started to experiment with the technology, enabling companies to analyze the size, color, and style that customers desire, but the real improvements may be to the top and bottom line.
CYBRA Corporation May Experience Increase RFID System Sales
CYBRA Corporation is provides bar code label and tag printing, bar code scanning systems and RFID technology to consumer goods manufacturers around the world. The company offers products that can assist companies in tracking assets, controlling inventory, and EPC (Electronic Product Code) compliance with a keen focus on the garment industry. Over the past five years, the firm has also been working on RFID technologies, and offers it as a natural upgrade to legacy systems using bar codes. And with Wal-Mart stepping up its requirements, CYBRA is well-positioned to profit from the upcoming switch to RFID technology.
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