06 Nov RFID Return on Investment
A fully integrated RFID system is perhaps the highest paying return on investment available for a business. It maximizes efficiency across the board, yielding optimal net gains in every phase of the supply chain. The scary part is that this is only the start. RFID is a quickly growing and improving technology, soon to be the imperative “next step” for a major company to grow its net worth.
RFID’s tangible major benefits include:
- Automation – reduced manual processes leads to higher productivity and more time to allocate towards beneficial activities for the company.
- Certainty– real-time information with the certainty that it is correct eradicates errors, raises profits, and improves customer satisfaction.
- Efficiency– minimizes time spent tracking assets, increasing product flow and handling speeds.
- Insight – provides real-time information needed to make fast, well-informed decisions to improve the company.
- Capability – higher quality and speed in the supply chain and an overall better customer experience.
There’s an overwhelming amount of statistical evidence depicting the return on investment provided by RFID software. In a report by Motorola about RFID return on investment in the supply chain, some powerful statistics are revealed. Aside from the up to 40% increase in warehouse and distribution productivity by implementing RFID, retail and point of sale productivity can improve by up to 20%, out-of-stock items can be reduced by up to 50%, and inventory shrinkage can be reduced by 18% or more.
That means relaying goods to the customer 40% faster than your competitor. 20% more sales can be made, and “out of stock” can be a phrase removed from the company’s vocabulary. Losing inventory can become a thing of the past.
These are just a few out of many innumerable statistics depicting the astounding benefits of an RFID system. Labor costs are minimized with more done automatically. The 8.3% of revenue lost yearly to out-of-stock conditions can be avoided completely. Effortless inventory management prevents the loss of goods that can be sold. Once again, money is saved, and profits go up.
Effective asset management systems will bring the company a lower likelihood of supply chain errors, better asset management ability, higher security, faster decision-making, and an influx of real time information at disposal.
It’s been proven time and again by businesses across the globe that implementing an RFID system brings nothing but good to the company; the return on investment is huge and applicable to a wide range of facets of business operations. Soon enough, their prominence in the workforce will be imperative to any refutable company. The future of business is in RFID.
For a look at some asset management RFID systems, go to https://www.abr.com/Solution/New-Asset-Management.