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EPC: A Shared Vision for Transforming Business Processes

The Global Commerce Initiative (GCI) commissioned this study to understand the current experience of companies that have begun to test electronic product code (EPC) and evaluate its economic impact on their businesses.
IBM Institute for Business Value study
Last updated: 07 Sep 2005
Summary
Analysis
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Summary

The Global Commerce Initiative (GCI) commissioned this study to understand the current experience of companies that have begun to test the electronic product code (EPC) and evaluate its economic impact on their businesses. The study addresses three fundamental questions:

  • What is the overall financial impact and value of EPC across our industry?

  • How should trading partners approach implementation of EPC-enabled systems and processes?

  • How will near-term initiatives support progress toward the longer-term vision of EPC-enabled supply chains?

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Analysis

In November 2003, the Global Commerce Initiative (GCI) published "The EPC Roadmap," a report that outlined the combined technology and process initiatives that have the potential to revolutionize the consumer products/retail industry. In this report, the GCI Executive Board strongly recommended the global standards-based implementation of radio frequency identification (RFID) technology, supported by the use of standards-based tags, readers, tag content and information flows in the retail supply chain. In 2004, the first set of global standards were developed and established via EPCglobal, a worldwide, user-driven standards organization for the Electronic Product Code (EPC).

Over the past two years, significant progress has been made on the commercial use of EPC in our industry. Examples include the standardization of new "Generation 2" technology for transponders and readers and the implementation of EPC technology by leading retailers and manufacturers in various parts of the world. These early adoptions have delivered significant benefits to both the consumer shopping experience and industry supply chain efficiency and have highlighted that great opportunities remain for further innovation and improvement in both areas. They have also shown, however, that challenges and barriers to broad implementation of EPC still exist.

This report represents a joint assessment by GCI members, including representatives from both the manufacturer and retailer communities. The objective is to provide senior industry leaders with pragmatic insights on how RFID/EPC technology can help drive major changes in the industry supply chain that lead to benefits for all participants.

Leading retailers and manufacturers share the ultimate vision of an EPC-enabled supply chain that brings significant service and efficiency benefits to shoppers, end consumers and businesses. The EPC-enabled supply chain will enable trading partners to meet shopper and consumer needs in ways far superior to what is possible today.

This report focuses on case- and pallet-level tagging, extending from the manufacturer's distribution center to the retailer’s sales floor. It builds upon accumulated industry experience to describe detailed, practical steps for transforming key supply chain processes and utilizing EPC technology.

To read the full report, download the PDF file at the top of this page.

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About the authors
iThe Global Commerce Initiative
The Global Commerce Initiative (GCI) was established in October 1999 as a voluntary platform. Its objective is to improve the performance of the international supply chain for consumer goods through the collaborative development of best practices and the implementation of global recommended standards.
iThe IBM Institute for Business Value
This work was supported, in part, by the IBM Institute for Business Value, which develops fact-based strategic insights for senior business executives on critical industry-specific and cross-industry issues. The IBM Institute for Business Value is part of an ongoing commitment by IBM Business Consulting Services to provide analysis and viewpoints that help companies realizebusiness value.
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