Question:
What are the best reasons to implement RFID to produce solid ROI? What useful information can be encoded on RFID tags other than just an identification number?

Answer: Regarding the cost justification and “Return of Investment” strategy let it first be said that RFID is just one more tool for automatic data collection, along with bar code, magnetic swipe, i-Button and other data acquisition sensors. RFID is not a solution, it’s just another tool that must be implemented properly to receive its benefits.

RFID is not an emerging technology. It has been around since before World War II. RFID is used everyday in tracking livestock, identifying pet cats and dogs, in car ignition keys as ignition immobilizers for auto theft prevention, for purchasing fuel with your Mobil-Exxon Speedpass, for toll road transponders and numerous other applications, right under your nose.

Justification and ROI for RFID implementation is quite simple. Just follow these steps:

1. Identify a real data collection or identification problem

2. Determine how much pain it is causing and how much a solution is worth to the beholder. If the customer does not perceive his/her problem as being a “problem worth fixing” then stop wasting your time trying to convince them to fix it.

3. Determine if RFID technology can really solve this problem

4. Most importantly, can the problem be fixed using another technology that is cheaper, faster, better or more accepted than RFID?

Is there a real “compelling” reason to require some of the unique attributes of RFID?

These inherent attributes of RFID set up the compelling justification for its use:

1. Read/ Write capability Used for posting the manifest of a container Debit balance of an account Bar Code label equivalents for legacy systems Service log of equipment deployed in the field 2. Non line-of-sight tracking 3. Harsh label environment Industrial laundry tag Embedded transponder within a product 4.Long Range Reading Active Beacon Tags – location of assets RTLS Toll Roads & Speed Pass Vehicle gate access control 5. Anti-counterfeiting Authenticity – branding Pharmaceuticals Jewelry 6. Technology Showcase Show off high tech labels Loyalty systems – Key Fobs 7. Electronic shelves Identify numerous items – remotely Medical instruments in hospitals Pharmaceuticals Pallet identification on warehouse shelves 8.Multiple function applications Time and Attendance Access Control Computer Security Asset Management Statistics and data collection