Radio frequency identification (RFID), which is being adopted by Wal-Mart and the U.S. Department of Defense, can provide advantages such as improved inventory visibility, which will accompany better labor efficiency and better fulfillment. The advantages of RFID will be realized mostly by retailers, according to a report by A. T. Kearney, via reduced inventory, a one-time cash benefit estimated at 5 percent of total inventory; store and warehouse labor reductions; and reduction of out-of-stock goods. Retailers' costs will include readers, portals, middleware, and system integration and consulting. Non-tag-related cost is a large percentage of the overall investment, says an analyst, and will run in the area of $400,000 per distribution control and $100, per store for large retailers, without taking into consideration distinct operating characteristics. Manufacturers will also have one-time costs for RFID hardware and systems integration, but the manufacturers will also have to pay for the purchase of RFID tags. Dan Mullen, president of AIM global, an auto-ID industry group, points out that examining the costs of each component is an erroneous approach; retailers and manufacturers should instead consider their goals, the components needed, and the research costs. With those answers in mind, return on investment (ROI) can be considered and can be measured in efficiencies gained or as value added to the operation.