To be fair, global RFID revenue in 2007 did hit $917.3 million, Gartner Research analysts predicted in a new report. There are still many projects moving forward and expert affirmations that view everything as hunky dory in RFID-land.

Earlier this month, Ford Motor Co. announced that it is diving head-long into RFID, embedding the technology in its pickup trucks and vans to tag and track tools, construction equipment and materials.

And the new Gartner report (via Computerworld) is predicting the worldwide revenue for RFID to eclipse $1.2 billion this year — a 31 percent increase over last year — and to reach $3.5 billion by 2012.

Unfortunately, this sort of news (some say overzealousness) may not align with developments transpiring against the widespread use of the technology.

For one, an ongoing patent lawsuit could complicate the way Wal-mart and Target keep their shelves stocked and warehouse inventory tracked. The two mega-retailers face an ongoing patent lawsuit over their use of RFID technology. The suit accuses the mega-retailers (and Gillette) of infringing on a U.S. patent covering an "inventory control system" that employs RFID tech to track the presence or absence of items and keep them from colliding.

If the lawsuit marches forward, it's another major setback not only for the retailers, but for RFID itself.

Moreover, RFID doesn't seem to be a strategic enabler for small business in the near future. A December 2007 outsourcing survey from Aberdeen indicates that the demand for supply chain management services has grown tremendously in the small business space. The Aberdeen report indicates that small businesses are seeking assistance around help desks, order entry, contract management, logistics support and compliance and performance management.

Other supply chain technologies seem to be making more sense for small businesses.

SiliconRepublic.com, for instance, recently claimed that the "supply chain is finding its voice" — no thanks to RFID. Instead, the article uncovers what appears to some to be a more logical direction in next-generation supply chain management: voice-directed logistics.

"At the moment, there's more bad press around RFID than good," a situation Ronan Clinton, managing director of Ireland mobile solutions provider Heavey RF, puts down to "the technology being rushed into environments where it can't bring a return on investment or even solve a specific problem."

Clinton is not alone. Barry Long, sales manager with Zetes Ireland, offered this assessment:

RFID needs a certain amount of things to be actually viable: it needs to work in a closed-loop environment, usually dealing with high-value items. While we are involved in RFID installations throughout Europe, the projects we've been involved with have involved very specific types of applications that derive very specific results.

Both Long and Clinton are placing their bets on voice automation as the next big thing in supply chain management.

"Voice is almost a standard in retail high-picking environments now," Long told SiliconRepublic.com. "What we are finding is the early adopters for voice were the big guys with a few hundred pickers in a warehouse; we're now seeing companies with five to ten pickers getting a return on investment."

Added Clinton: "I see absolutely massive growth in voice-directed logistics. In every single case of implementing voice-directed logistics, we've seen the benefits we've expected."

Nonetheless, according to Gartner, the RFID market is heading into its "second wave of adoption." Businesses are moving away from their initial pilot programs and are entering what Gartner is calling the "exploration phase."

Bullish RFID predictions aside, it would appear that more nimble and less expensive supply chain management tools like the aforementioned will reign supreme. The interest for RFID technologies may still be high, but today's buyer is more discriminating than ever before. They are also more cautious of over-hyped technologies, instead looking for greater functionality and return on investment.