RECOMMENDATIONS

     Since RFID systems and its application to retail business models are still under development, being a “follower” versus a “leader” is recommended.  Waiting will allow retailers with limited resources to learn from the lessons in RFID implementation generated by the larger early movers.  Waiting to implement RFID systems is further justified as Gen2 RFID tag protocol was only approved by EPCglobal in December 2004 and the tags are not widely utilized.  Gen2 tags are expected to over come many of the short falls and interoperability issues of generation 1 RFID tags.  Clearly, overall supply chain management systems lessons learned will help Gen2 implementation obstacles and their integration into supply management systems be overcome. 

     With implementation schedules on the order of 6 months for RFID systems, a firm can implement an RFID system if and when its competitors are developing too great of a competitive advantage.  With relatively short implantation periods, competitors should not be able to convert an RFID system into a long-term, strategic advantage.  While waiting to implement an RFID system, business should research how they will integrate RFID systems into their organization, and develop implementation contingency plans.  Finally, with large fixed cost of RFID system implementation, waiting will allow these costs to decrease, along with the price of RFID tags.

      For businesses which can afford to pilot RFID system programs at warehouses and stores, implementing Gen2 pilot programs using the current understanding of RFID system technology and business applications is recommended.  Implementing RFID systems now will allow these firms to realize cost savings now while learning how to integrate RFID systems into their specific business application.