When you listen to CNBC talk about RFID, they talk about the incredible applications the technology can have and rightfully so. But, they often mention the mandatory requirements that Wal-Mart and other big box stores will demand from suppliers. This is such an incredible exaggeration it’s laughable. First, the example often pointed out in the media is that a warehouse full of disposable razors can be tracked individually and the warehouse manager would know if one razor was missing from a pallet of a million. This is simply not true. The reality is that there will be several steps to tracking individual razors but not before the price of the RFID device drops below its current 25 cents.
A company that has done all the heavy lifting in developing the hardware and software for the retail market is AbsoluteSKY Inc (ABSY.OB). Knobias spoke with the management team recently and got an earful about the 3 year journey and the 3 million bucks it took in finally developing a useful product. CEO John Frabasile spoke candidly about his experience in the industry and the fork in the road he reached 3+ years ago in deciding whether to roll up the carpet and go home or take the time to work using his 25 years experience in the retail technology sales industry and translate the tagging needs of a retailer to cover all bases from inventory tracking to loss prevention, and from auto-receiving to auto-checkout at the “point of sale”.
Headquartered in Montreal, Canada, AbsoluteSKY has a mission to produce breakthrough integrated business solutions for the specialty retail industry, and specifically starting at item level inventory tracking. The company became a publicly-traded stock in April 2006.
In late 2005, the Company acquired the assets of JavaPRO Solutions Inc., a technology company with unique expertise in developing specialized software and RFID solutions for retail customers. This foundation, combined with credentials in technology implementation and a deep-rooted understanding of the retail business, is moving AbsoluteSKY to the forefront of the rapidly emerging RFID field.
Civil liberties advocates need not be worried about personal privacy being compromised with this product. AbsoluteSKY’s tags are designed for use inside retail operations only. They are visibly attached, not concealed in an article, and are removed for re-use once the sales transaction has taken place. As such there is no threat to personal privacy.
The company has a suite of products aimed at the retail marketplace which provides the following capabilities: instantaneous physical inventory, automated store receiving, direct store to Store Transfer Control, Automated Markdown Counts and Control, Automated Warehouse Receiving and Shipping, Style Aging Tracking and Control, Loss Prevention (including the replacement of Electronic Article Surveillance “EAS”), Layaway, Display & Damaged Inventory Control, Time & Attendance, RFID-enabled POS, and much more.
AbsoluteSKY is a new entrant on the RFID horizon that has been quietly developing its technology and is ready to launch in a big way. They have one existing strategic partner, and are possibly near adding more. The market place really is dominated by 2 large integrators who affect 85% of the global specialty retail technology business. Additionally, ABSY has the ability to create recurring revenue the way their contracts are structured, and they seem to have no immediate competition in the RFID specialty retail space for real time item level inventory tracking. They will be announcing an important financing partner and program that will facilitate leasing for customers to immediately realize an ROI on the hardware and software benefits of their solutions.
RFID one day will eliminate bicycle theft, keep track of pets and a host of other George Jetson type technologies, but for today RFID is an important tool for the retail industry and ABSY spent the time and money to be first to market. As we have learned from other products, it’s nice to fish in the stream by yourself; you catch many more fish.
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