A strategic alliance has been formed between Royal Philips Electronics and Checkpoint Systems aimed at providing RFID-enabled tags and readers combined with system integration services to retailers and fast moving consumer products companies. The companies will combine their expertise to address the growing need for RFID-based technology in day-to-day business processes and operations.

As a result, full-scale implementation of RFID will be made available to the large number of retailers and suppliers whose objective is to meet industry mandate deadlines, some of which are set for 2005. The two companies are already working together on several projects in the European retail industry, including the Metro Group in Germany.

Within the scope of the agreement, Checkpoint Systems Europe will be building and integrating applications and solutions for the retail industry and its supply chain based on Philips’ HF and UHF RFID chip solutions including EPC. In addition to collaborating on tags and readers, the two companies will deliver system integration services. Furthermore, Checkpoint and Philips will combine their expertise and efforts to develop synergies that could lead to a significant lowering of the cost of RFID through the use of advanced RFID tag manufacturing techniques and processes.