What ROI should you really expect from RFID?
February 18, 2009 by Charlie WalkerPosted in: In this week's e-Newsletter, Latest News & Views, Procurement costs, Procurement trends, Supply chain technology
You’ve probably heard the buzz about how 75% of RFID users expect to see ROI in two years.
Well, don’t start counting your chips just yet.
Turns out that most of that positive tune is just speculation, experts caution, as there is no hard evidence at this time to back it up or refute it.
Even more acute: Some folks — around 37% — expect to see a return on their investment in just 12 months.
The main problem is essentially a “chicken and egg” situation.
In order for RFID to take off and deliver a desirable ROI, it has to be proven that RFID is capable of doing it. And the only way of demonstrating that is by more people implementing RFID. But more won’t implement it until … You get the picture.
Or, perhaps even more specifically, an example of how success breeds success — but success is in relatively short supply at this point in time.
One big question: What really is a good ROI for specific systems, in specific settings?
RFID generally is implemented in two types of systems: closed loop, self-contained in one area of a business or supply chain; and open loop, an implementation that stretches across companies.
The problem, some industry experts point out, is that companies that have successfully implemented RFID and realized a positive ROI are reluctant to share the information.
Tags: investment, RFID, ROI

