Checkpoint, Philips Form RFID Alliance

May 26, 2004 (08:05 AM EDT)

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Checkpoint Systems and Royal Philips Electronics on Wednesday said they have formed an alliance to jointly sell electronic tags and readers and system integration services to retailers and consumer products companies.

The partnership is in response to the fast-growing market for radio-frequency identification technology. Adoption of RFID has been the focus of companies since Wal-Mart Stores and other major retailers said they would require use of the technology next year by their largest suppliers.

Checkpoint sells RFID systems that include hardware and software, while Philips is one of the largest makers of RFID tags that are attached to pallets and cases for better tracking of goods moving through a supply chain. The two companies currently work together on several projects in the European retail industry, including the Metro Group in Germany.

"Checkpoint has recently deployed RFID solutions based on Philips RFID chips in more than 12 in-store and supply chain applications thus far in 2004," Albert Roger, Checkpoint vice president and general manager for RFID in Europe. "Our plans for additional turnkey and custom applications, to be launched throughout the year, will continue to take advantage of Philips' significant research, development and manufacturing capabilities as a leader in the RFID industry."