For most businesses adopting RFID the main factor will be how to capture the business benefits that can be achieved through RFID based solutions.
The key features of RFID and system benefits are:
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Fast, automatic or semi-automatic data entry;
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Accurate data entry;
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Immediacy of information;
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Identification linkage, options and dividends;
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Radical process improvements, when effectively applied;
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Fast returns on investment for well defined and implemented applications;
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Opportunities for Item-linked innovation.
For example it may be possible to implement a RFID tagging system within a warehouse to aid in traceability, increase throughput, improve order accuracy and reduce labour costs for stock taking. The positive benefits from using RFID would be a reduction in excess inventory or out of stock items, reduction of losses due to excessive theft or counterfeiting and a increased operating efficiency. These benefits combined will show a considerable return on investment (ROI) dependent on the turn over of items and/or the current inefficiencies improved within the business processes.
No one application will deliver a return on investment so it needs to be understood that RFID is an infrastructure and an enabling technology that can be used for different applications. For RFID to deliver substantial business benefits the business needs ask itself a few key questions:
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How effective and efficient are the existing business processes?
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What are the effectiveness and efficiency goals for our processes?
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How can RFID help reach those goals?
The business needs to consider whether additional data or automation can solve the problem identified within the business processes and is the initial (and future) cost going to provide a return on investment.
