SOURCE: Aberdeen Group, a Harte-Hanks Company

February 01, 2007 15:18 ET

The Value Proposition of RFID to the Manufacturer: "Can RFID Deliver the Goods?"

82% of Manufacturers Surveyed Indicated That Their RFID Technology Selection Is Driven in Part by a Hostile Environment or by Challenging Production Materials

BOSTON, MA -- (MARKET WIRE) -- February 1, 2007 -- Manufacturers are showing signs of significant maturation in their approach to RFID. Penetration of RFID into the manufacturing sector is only 3% or 4% today. But growth is strong -- over 112% in 2007 -- and the average manufacturer's RFID budget will grow from $50,000 to $75,000 per year in 2006 to $100,00 to $200,000 in 2007.

According to a new benchmark report, "Can RFID Deliver the Goods?," from Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), early adopters of RFID in aerospace, automotive, pharmaceutical, paper, electronics, and heavy industrial manufacturing are already leveraging the technology to drive out waste, enable just-in-time delivery of finished goods, and realize continuous improvement throughout the production process. Thus, the value proposition of RFID to the manufacturer can be segmented into three general areas:

1.   Optimizing the procurement and management of raw materials
2.   Monitoring tools, equipment, parts and personnel in the production
3.   Providing forward demand visibility into the supply chain
"To realize the potential of RFID on the shop floor, careful system integration planning is required, an important step often ignored due to its cost and complexity," says Russ Klein, Research Director for Aberdeen Group's Emerging Technology and Data Management practice. "Especially when an RFID initiative begins as a measure to comply with an external mandate, the solution is designed with cost minimization as the guiding objective. Then, as RFID becomes a key differentiator in the quest for lean operations and a flexible organization, those early cost savings become expensive mistakes. To avoid them, manufacturers focus on specific practices promoted aggressively by best-of-breed RFID vendors with manufacturing domain expertise."

The research, underwritten by Acsis, Impinj, and Reva, shows readers best practices for using RFID applications in manufacturing and ways to justify the investment. This report is valued at $399; however, for a limited time a complimentary copy is available by following this link:

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to AberdeenTM for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to

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