Agenda - Corrugated Packaging Council

Attachment A
MEMO
o Failure of RFID application today is most likely due to financial
challenges, not technical.
o Many retailers are looking to RFID for niche applications with
strong return:
• usually at item level for fast-moving , higher margin
items (like DVDs & video games)
• Promotional items and displays to verify promotion is
where it should be, when it should be
• Case and pallet level tagging is not primary focus for
retailers except Sam’s Club
o Sam’s Club has announced a timetable to rollout RFID at the
pallet, case and item level in all DC’s by November 1, 2010, with
penalties for non-compliance. This is a different approach than
last attempt; they hope to generate critical mass to achieve
measurable benefits for RFID implementation.
• Short term – major suppliers will focus on compliance;
probably “slap-and-ship”
• Mid-term – suppliers to examine more strategic tagging
solutions, perhaps third-party re-packers and contract
packagers
• Longer-term – most suppliers will migrate to managing
the tagging process entirely in-house or outsource it
entirely to logistics firms or re-packers. If sufficient
volume is achieved, manual tagging will be replaced by
other methods, including “source-tagging” (pre-enabled
packaging).
• Wax Replacement - Dwight Schmidt gave an update:
o We now have 14 certifications, 2 of them by generic
marketplace suppliers
o A concern was registered by one of the generic wax
alternative suppliers that retailers would feel better if the
certification number was printed next to the symbol as a
control. The FBA Executive Committee turned down request
for labeling the certification number on box due to the
complexity of administration vs. the implied value.
o So we have evidence to show retailers we are making
progress the FBA has approved a second survey of wax and
wax alternative for comparison to the original conducted in
2003. It will be undertaken in the first quarter of 2009.
o In an effort to keep this implementation moving we plan on
publishing an update article to industry in the first quarter
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