Two thirds of European businesses are planning to evaluate, pilot or implement RFID technology within the next 18 months but many are confused about how to begin, according to research published today.

Empowering people to make better decisions, improved data accuracy and better inventory management are the most important anticipated benefits by businesses participating in the BEA Systems survey conducted at the European Supply Chain and RFID Congress this month.

However, confusion about the technology is high – 80 per cent of organisations believe RFID will innovate their business but do not know how or where to begin the implementation process. And 73 per cent still perceive RFID as being simply about using tags and readers.

Tony Lock, an analyst at Bloor Research, said: ‘There has been a lot of shouting about RFID before it was ready and businesses are confused. It all comes down to business processes - what are you doing and why. Companies must decide where RFID will make a difference at the business process level.’

He added: ‘Companies should work out where the big gains are to be made from RFID through involving a combination of business managers at a senior level and somehow who understands how RFID works and where it is relevant.’

Asset tracking is the area which 60 per cent of businesses surveyed perceive will gain the biggest benefit from RFID, followed by securing the supply chain (33 per cent).

RFID is also expected to improve returns management, mandating compliance and combating counterfeit fraud.