Wal-Mart's top 100 suppliers have collectively invested only about $250 million on radio frequency equipment to meet the retail giant's January 2005 mandate deadline. A study by AMR Research found that the top 100 suppliers 'do not view RFID as a strategic investment and have patched systems together just enough to meet Wal-Mart's compliance deadline.'
Wal-Mart suppliers individually have spent $1 million to $3 million on RFID-just enough to buy tags, readers, and basic software. To see significant benefit, though, they must integrate RFID into 'their applications, change existing software, and enable large volumes of data to be stored.' AMR estimates that such a shift would cost each supplier $13 million to $23 million.
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