To: Montana Wildhack who wrote (17 ) 9/4/2004 12:44:16 AM From: Montana Wildhack Respond to of 20 Mar 1, 2004 Target RFID Announcement Frontline Solutions Target is the latest retailer to outline its plans for using radio frequency identification (RFID) technology in its supply chain. The announcement puts even more pressure on consumer goods manufacturers working to comply with similar mandates from Wal-Mart and the U.S. Department of Defense—and many logistical and technical details have yet to be determined. In a letter on Target's extranet issued to vendors last month, Target CEO Paul Singer indicated the company would ask top suppliers to begin using RFID in the supply chain by spring 2005 in select distribution centers, and hopes to have all suppliers involved by 2007. Much like Wal-Mart, which announced its RFID plans last summer, Target is initially targeting pallets and cases. Also like Wal-Mart, Target will accept Electronic Product Code (EPC) tags, both Class 0 and Class 1, and has plans to migrate to Class 1, version 2 when that specification is finalized later this year. Target will pilot RFID in its distribution centers this spring, after which it will further clarify its plans. "[M]anufacturers should assume that most of their retail customers will ultimately require RFID tagging in the not too distant future and plan their rollouts accordingly," said Kara Romanow, analyst at AMR Research Inc. "Like Target, many will state their intent before working out all the details." Depending on when and where Target begins using RFID, the announcement could complicate RFID roll out for suppliers already working on pilot projects with Wal-Mart for its Texas facilities. "CPG suppliers must now ask: how many $250,000-$500,000 RFID-in-a-box compliance products do we buy before we shift directions and plan larger, more IT-focused supply chain and enterprise RFID solutions?" wrote Erik Michielsen, senior analyst at Allied Business Intelligence, in a report published after the announcement. google.ca