RFID boost for IBM as scooter co gets on board

IBM is set to announce it has won two new customers for its RFID tracking software - an Italian subsidiary of Honda Motor and packaging maker Pliant.

Honda Italia Industriale, which sold 12.7 million scooters last year, plans to use the chips and IBM software to track motorcycle parts and tools circulating within its manufacturing plant in Atessa, Italy.

US-based Pliant will sell a new RFID-embedded plastic wrap to consumer-goods companies that want to detect any tampering of their products in transit from manufacturer to distributor. Pliant is using IBM's software to keep track of RFID-marked cargo - everything from cereal boxes to nappies - in the warehouse.

Doug Lilac, Pliant's Technical Director for Innovation, said: "The goal of this programme is to commercialise practical and cost-effective bulk packaging solutions that incorporate RFID technology."

The news is a boon to IBM and an industry still in its early stages. While RFID tags are gaining ground in certain sectors - for instance, aircraft maker Boeing is tracking parts with the chips - many manufacturers and retail giants are reluctant to adopt the technology based on still-steep costs associated with the tags and potential consumer-privacy concerns.

The news comes a month after IBM introduced new software called WebSphere RFID Information Center, which helps manufacturers and distributors share data from the tracking tags.

Stefanie Olsen writes for CNET News.com