RFID Label Fulfillment Service offers end-to-end solution.
Press Release Summary:
RFID Fulfillment Network(TM) service delivers hardware, maintenance, software, consumables, and network connectivity for managing end-to-end process. Based on per-click operation with which users generate RFID-compliant labels, service provides Zebra Technologies R110Xi RFID printer, Zebra Technologies RFID labels, as well as One Network Logistics backbone. Also included, One Network Global backbone helps manage RFID tag creation and customer notification/communication.
Original Press Release:
One Network Announces RFID Fulfillment Network(TM); Partnership with Zebra Will Revolutionize RFID Economics
DALLAS, Jan. 13 / -- One Network Enterprises, the pioneer of innovative solutions for Business Process Networks, today announced the RFID Fulfillment Network(TM), a new service that will accelerate the adoption of RFID technology and revolutionize its economics. The service delivers an advanced network and RFID technology that can reduce the cost of RFID printing by 75% and drive significant savings in the end-to-end order fulfillment process.
The RFID Fulfillment Network is being demonstrated at the National Retail Federation Expo at the Jacob Javits Convention Center in New York from January 16th-17th at both Zebra's booth #1653 and One Network's booth #1355.
"The adoption rate of RFID technology has been hindered by both the large capital outlays and the significant operational expenses that suppliers must incur to meet the RFID compliance standards set by their largest customers, particularly those serving retail and government markets," said John Keenan, CEO of One Network. "This problem is especially severe for mid-sized suppliers that generate less than 1000 RFID tags per month. The RFID Fulfillment Network delivers huge printing cost reductions and improves the end-to-end order fulfillment process, further lowering operating costs."
RFID Fulfillment Network(TM) Functionality
The service delivers a complete package of hardware, maintenance, software, consumables and network connectivity for managing the end-to-end process. It is priced on a per-click basis in which the users pay a fixed fee to generate RFID compliant labels, with no upfront capital costs. The key functionality includes:
o A Zebra Technologies R110Xi Printer, the industry's most advanced RFID printer. All printer service, supplies and consumables are included in a per-label fee.
o Zebra Technologies RFID labels.
o The One Network Global backbone for managing RFID tag creation and customer notification and communication.
o The One Network Logistics backbone for managing the end-to-end process, spanning building the shipment, complete transportation management, appointment scheduling and in-transit tracking.
"RFID technology promises to deliver extremely compelling value to the retail industry, measured by lower operating costs, improved processing speeds, optimized inventory and lower out-of-stocks," said John Fontanella, senior vice president, Aberdeen Group. "With that in mind, pressure on the suppliers to comply with RFID labeling requirements will only continue to grow. The RFID Fulfillment Network not only simplifies the deployment of RFID, but offers a very cost effective way for companies shipping in smaller volumes to meet their retailers' demands."
Availability And Pricing
The RFID Fulfillment Network will be available in March 2006. Whereas in- house RFID printing systems can easily cost $100,000 per site, the RFID Fulfillment Network is priced at a fixed fee per RFID-compliant label. There is no upfront capital cost.
The service is priced at $1.24 per RFID compliant label, based on a 3-year agreement and a monthly minimum of 500 labels. The price per label decreases as monthly usage exceeds the 500 tag minimum.
The RFID Fulfillment Network is being offered through Zebra VARs. One Network selected Zebra because of its high quality products, leadership position in the RFID market and its large, international reseller network. "Zebra's distribution and channel partners are essential to the success of the RFID Fulfillment Network. They have a 20 year history of delivering innovative printing systems to the market, through a well-trained and extensive partner organization that always puts the highest priority on customer satisfaction," added John Keenan.
Compelling Economics
In-house RFID systems have significant initial operating and capital expenses that hinder adoption rates. The combined hardware, software and integration services require an initial capital outlay ranging from $45,000 to $100,000. The ongoing or per tag costs include the RFID labels, EDI VAN changes and system maintenance, ranging in the aggregate from $1.50-$2.00 per tag for mid-sized suppliers. The total cost for a supplier producing less than 1000 RFID labels per month averages over $3.00 per tag.
The RFID Fulfillment Network is priced at a flat fee of $1.24 per RFID- compliant label, with a monthly minimum of 500 labels. The price per label decreases as monthly quantities increase, delivering three significant savings:
o Cost per tag reduction of up to 75%
o No upfront capital outlays
o Complete budget predictability
Beyond The Tag
While the savings associated with RFID printing is significant, the process efficiencies represent an even greater potential. By tightly integrating the printing function with the end-to-end order management process, suppliers will realize the following benefits:
o Rapidly build shipment data
o Automatically notify customers of expected shipments
o Improve distribution functionality through One Network's advanced Outbound Scheduling, Transportation Management, Dock Scheduling and In-Transit Tracking capabilities
About One Network
One Network Enterprises is a technology innovator and pioneer of the Business Process Network market. The company delivers a network-centric, process-driven solution, including a powerful software architecture for managing multi-enterprise operation processes; robust replenishment, supply and service templates; and leading-edge mobile/RFID devices. The solution is delivered via an on-demand network to over 1200 customers and manages over $100 billion a year in annual retail trade. One Network is based in Dallas, Texas and has offices in the United States and Europe. For more information, please call +1 972-385-8630 or visit www.onenetwork.com/ .
About Zebra Technologies
Zebra Technologies Corp. (NASDAQ:ZBRA) delivers innovative and reliable on-demand printing solutions for business improvement and security applications in 100 countries around the world. More than 90 percent of Fortune 500 companies use Zebra-brand printers. A broad range of applications benefit from Zebra-brand thermal bar code, "smart" label, receipt, and card printers, resulting in enhanced security, increased productivity, improved quality, lower costs, and better customer service. The company has sold nearly four million printers, including RFID printer/encoders and wireless mobile solutions, and also offers software, connectivity solutions, and printing supplies. Information about Zebra bar code and RFID products can be found at www.zebra.com/ .
CONTACT: Kenny Smith of One Network Enterprises, +1-972-455-3515, or ksmith@onenetwork.com
