LAWRENCEVILLE, N.J. - (BUSINESS WIRE) - May 9, 2005 - EPCglobal US, along with the Stanford Global Supply Chain Forum and the Massachusetts Institute of Technology, today announced the release of the EPC Value Model, a report that includes spreadsheet tools to allow manufacturers to assess the value of implementing Electronic Product Code (EPC) technology based on their business conditions. EPC technology, which leverages radio frequency identification (RFID), is being deployed today across the supply chains of many industries around the world and provides real-time, automatic tracking of goods in the global supply chain.

The EPC Value Model was developed by EPCglobal US along with nine global consumer products manufacturers, three international retailers and two highly acclaimed academic institutions. The spreadsheet tools, intended for use by large- and medium-sized consumer-products manufacturers, accept unique variables and assess the value of implementing EPC technology at the case and pallet level.

Mike Meranda, president of EPCglobal US, said the EPC Value Model is designed to help EPCglobal US subscribers relieve some of the uncertainties inherent in planning their implementations. "This is the year of the EPCglobal Network," Meranda said. "That means more companies than ever need this kind of tool to help them assess and implement how EPC technology will work in their business - and to do so in the fastest, most cost-effective manner possible."

The model, developed as a software spreadsheet, is included in a 49-page report authored by a team of researchers led by Dr. Hau Lee, co-director of the Stanford Global Supply Chain forum, a research institute affiliated with Stanford University that studies best practices in global supply-chain management. The report, Assessing the Value of RFID Technology and EPCglobal Standards for Consumer Goods Manufacturers, is available starting today for EPCglobal US subscribers.

"Previous studies have tried to predict an average return on investment," explained Dr. Lee. "But our analysis demonstrates that the benefits are an evolving landscape, dependent on different scenarios faced by different companies. The EPC Value Model takes into account these different scenarios," he said.

The tool works like this: manufacturers enter company-specific data such as annual revenue, profit margin, expected business growth rate, annual cost of capital, and average inventory level as a percentage of sales. They also identify key areas they believe EPC technology can address in their business, including out-of-stocks, shrinkage or counterfeiting.

The EPC Value Model generates a spreadsheet analysis with estimates of the costs and benefits over time.

"The electronic product code will enable the re-engineering of the supply chain, creating benefits in efficiency, costs, customer service and greater product availability," said Dick Cantwell, vice president of the Gillette Company. "By applying the EPC Value Model to our business, we believe the EPC will allow us to achieve about 20 percent operational savings per distribution center. When combined with greater retail availability for our products, the return on investment could exceed 25 percent."

"The more a company hunts for value, the more it will find," EPCglobal US President Meranda said. "The process savings and the supply chain visibility only begin after implementing EPC technology, so the earlier you get started, the earlier you'll start to see a return."

The following EPCglobal US subscribers were among those who allowed their data and experiences to be used in the formulation of the EPC Value Model: Gillette, Hewlett-Packard, Johnson & Johnson, Kimberly-Clark, and Yuen Foong Yu a Taiwan's paper-making company. Retailers CVS, Metro and Wal-Mart also participated.

LAWRENCEVILLE, N.J. - (BUSINESS WIRE) - May 9, 2005 - EPCglobal US, along with the Stanford Global Supply Chain Forum and the Massachusetts Institute of Technology, today announced the release of the EPC Value Model, a report that includes spreadsheet tools to allow manufacturers to assess the value of implementing Electronic Product Code (EPC) technology based on their business conditions. EPC technology, which leverages radio frequency identification (RFID), is being deployed today across the supply chains of many industries around the world and provides real-time, automatic tracking of goods in the global supply chain.

The EPC Value Model was developed by EPCglobal US along with nine global consumer products manufacturers, three international retailers and two highly acclaimed academic institutions. The spreadsheet tools, intended for use by large- and medium-sized consumer-products manufacturers, accept unique variables and assess the value of implementing EPC technology at the case and pallet level.

Mike Meranda, president of EPCglobal US, said the EPC Value Model is designed to help EPCglobal US subscribers relieve some of the uncertainties inherent in planning their implementations. "This is the year of the EPCglobal Network," Meranda said. "That means more companies than ever need this kind of tool to help them assess and implement how EPC technology will work in their business - and to do so in the fastest, most cost-effective manner possible."

The model, developed as a software spreadsheet, is included in a 49-page report authored by a team of researchers led by Dr. Hau Lee, co-director of the Stanford Global Supply Chain forum, a research institute affiliated with Stanford University that studies best practices in global supply-chain management. The report, Assessing the Value of RFID Technology and EPCglobal Standards for Consumer Goods Manufacturers, is available starting today for EPCglobal US subscribers.

"Previous studies have tried to predict an average return on investment," explained Dr. Lee. "But our analysis demonstrates that the benefits are an evolving landscape, dependent on different scenarios faced by different companies. The EPC Value Model takes into account these different scenarios," he said.

The tool works like this: manufacturers enter company-specific data such as annual revenue, profit margin, expected business growth rate, annual cost of capital, and average inventory level as a percentage of sales. They also identify key areas they believe EPC technology can address in their business, including out-of-stocks, shrinkage or counterfeiting.

The EPC Value Model generates a spreadsheet analysis with estimates of the costs and benefits over time.

"The electronic product code will enable the re-engineering of the supply chain, creating benefits in efficiency, costs, customer service and greater product availability," said Dick Cantwell, vice president of the Gillette Company. "By applying the EPC Value Model to our business, we believe the EPC will allow us to achieve about 20 percent operational savings per distribution center. When combined with greater retail availability for our products, the return on investment could exceed 25 percent."

"The more a company hunts for value, the more it will find," EPCglobal US President Meranda said. "The process savings and the supply chain visibility only begin after implementing EPC technology, so the earlier you get started, the earlier you'll start to see a return."

The following EPCglobal US subscribers were among those who allowed their data and experiences to be used in the formulation of the EPC Value Model: Gillette, Hewlett-Packard, Johnson & Johnson, Kimberly-Clark, and Yuen Foong Yu a Taiwan's paper-making company. Retailers CVS, Metro and Wal-Mart also participated.