RFID: Finding An Active ROI

By Bert Moore, AIM Global

Reprinted from RFID Connections with permission from AIM Global. AIM Global, the trade association for the Automatic Identification and Mobility industry, is the source for technically accurate, unbiased, commercial-free, and up-to-date information on all AIM technologies. For additional information, please visit www.aimglobal.org.

While some companies may be actively seeking the value proposition of RFID implementation, others have discovered that the value proposition already exists in applications utilizing active RFID. These tend to be closed system applications which, at this point, provide the clearest path to calculating an ROI -- either in direct savings, process improvement or better customer service. Closed systems also do not rely on outside suppliers or customers to achieve 100% tagging, allowing companies complete control over the system. Of equal importance, however, is that tags are reused within the system and, based on cost-per-use, active RFID tags become very economical.

How and where are active tags being used to provide an active ROI? Here are some examples.

Health care providers have been among the most resourceful in demonstrating how accurate asset identification and management using real time locating systems (RTLS) can save time and money. Being able to quickly locate moveable assets saves employee time. More importantly, however, is that an accurate inventory has helped certain health care providers actually reduce its inventory of expensive equipment or its capital expense budget by providing better asset utilization. Further, since some equipment cannot be used unless it is calibrated on a routine basis, it's necessary to locate specific pieces of equipment for technicians. In some case studies, prior to the implementation of RTLS asset tracking, equipment could not be located in a timely manner and was therefore not calibrated and could not be used.

RFID enables more accurate yard management in company lots, freight terminals and car lots. Affixing active RFID tags to trailers and containers as they enter the yard enables yard managers to automatically record the location of specific loads, verify parking slots, direct drivers to pick-up slots, and certify departure times. Combined with yard management software, companies can manage the number of supplier, customer and carrier trailers in the lot, reducing density and, in some cases, lot size requirements.