Build it and they will come. Or so hoped leading third-party logistics (3PL) providers when they invested in RFID. But so far, the response by their customers has been lukewarm at best.

In the past few months, logistics providers Ryder System, Inc. and TNT Logistics have announced the finalization of major RFID projects. Another 3PL, Ozburn-Hessey also maintains a functional RFID program. Yet, representatives of each company told Modern that 10% or fewer of their clients utilize RFID.

"It doesn't even qualify as a percentage of our business," says Sean Barnett, vice president of business development and marketing, Ozburn-Hessey.

Chuck Lounsbury, senior vice president, marketing, strategy and acquisitions for supply chain at Ryder, also says that RFID is used by only 8 to 10% of its customers. Mark Morrison, senior vice president of TNT Logistics, adds that a mere 5% of TNT's clients demand the technology.

Lounsbury asserts that the RFID revolution has been "tremendously overhyped, but should eventually replace bar coding." He adds that his company's development of the technology was done "at the behest of our clients."

Barnett is resigned to the fact that although Ozburn has a functional RFID system, it is seldom used. Once the technology is more prevalent, Lounsbury is confident that a wide scale RFID deployment "will be easy to adopt."

Terry McIntyre, manager of technology services and RFID project leader for TNT, asserts that TNT's RFID initiatives are in hopes that the company will be ahead of the curve when RFID becomes more widespread.

"We're not in this for compliance—we look at RFID because it's going to be valuable to clients in the future," McIntyre says. "We want to be ahead of the wave." Both McIntyre and Morrison feel that the technology is a top priority for TNT. McIntyre adds, "The thirst for information is out there."