HP kicks off RFID pilot package for business

Hewlett-Packard unveiled on Monday services for companies trying to start radio frequency identification projects.

HP launched three packages that essentially create a shrink-wrapped pilot program when strung together. The packages target different stages for customers developing their RFID projects: planning, start-up and integration.

The first package, RFID Discovery, aids companies in outlining a business case for the adoption of the technology, as well as measuring the effect of adding radio tags to a company's existing supply chain operations.

The second package, dubbed the RFID Adaptive Starter Kit, aims to help companies build physical test programs, including procurement of the radio tags themselves, the reader devices used to scan the tags and the software needed to make these tools work together.

HP will also assist companies in addressing integration and data management issues created by using radio tags with its third package, RFID Readiness Assessment and Roadmap Planning.

Radio frequency identification (RFID) tags are chips that are armed with antennae and provide detailed information about the products to which they are attached. Many industry watchers assert that adoption of RFID will allow for more efficient tracking of inventory, thereby cutting costs and helping rectify supply problems.

HP, which estimates that the RFID market will grow to more than $3 billion by 2008, is the latest of several major IT companies to launch products for the emerging sector. Last week, Sun Microsystems and consultancy Capgemini introduced a combination of software and services designed for companies building RFID pilots. IBM has also established a presence in the RFID sector, offering many of the same tools as its competitors.

Executives from HP assert that their company has a distinct advantage over its rivals, based on its experience as an RFID user, most notably as a participant in the current test program run by retail giant Wal-Mart Stores. The retail giant launched a major RFID pilot with eight of its largest suppliers, including HP, earlier this month. Wal-Mart has given its top 100 suppliers until January to begin affixing RFID tags to shipments sent to certain distribution centres and stores.

Matt Hines writes for CNET News.com