One Network Launches DoD-compliant RFID Service

One Network Enterprises Inc. on Friday said it is rolling out a service for a minimum $620 monthly fee that enables companies to comply with retail and Department of Defense radio frequency identification technology mandates. The platform will launch in March.

The RFID Fulfillment Network aims to reduce the cost of RFID printing by 75 percent and drive down savings in the entire order fulfillment process. "If you're printing 1,000 tags monthly, about a medium size supplier, you are probably spending between $3 and $4 per tag," said John Keenan, chief executive officer for the supply chain services provider. "This includes software, hardware, integration, and servers to manage the data. We come out with a capital cost of about $60,000."

For $620 per month companies get one Zebra Technologies Corp. R110Xi printer, 500 RFID labels (minimum requirement), and three-year maintenance and network connectivity. Historically, analysts have quoted compliance costs for suppliers between $40,000 and $200,000. Some early adopters have been known to spend millions.

Keenan said there also are EDI charges to consider, ongoing hardware maintenance service agreements, and costs of between 40 cents and 50 cents per label. The service also aims to provide logistics efficiencies. Paul Vogt, practice leader for retail at Zebra Technologies, estimated deployment time in as few as five minutes to an hour to get the system up and running.