Thursday, November 4, 2010

RFID is to costly right?

I totally agree ROI is King. To go in and replace bar-code one to one it will be a tuff sale, but we have done it with cost justification and for less money than upgrading the bar-code system was going to cost. In a complete new deployment we have done many cost studies on these deployments where by the time you put in the supporting power and network, scanners, and tools for the bar-code solution RFID comes out much cheaper and in many cases from day one. Add in the automation factor and less man power requirements (also less possible error) and you have a big win situation.

Unfortunately you have to select the correct solution form the many out there. Too many people jumped in RFID thinking it was a sure winner and you have a lot of confusion. You have to take an agnostic approach to RFID. Kind of like selecting the correct hammer for the right job, they all will work and drive a nail but a roofing hammer is so much better on shingles than a framing hammer and that framing hammer is a disaster when used on fine trim.

When we are value stream mapping a supply chain we look at everything; manual processes to video monitoring and GPS. RFID is part of that mix, the problem is most sales people have only one or two solutions to offer and guess what they try to sell?

The global business model has changed and so has the way we need to track and trace things. Using the same tools year after year and expecting better returns or results may just border on insanity.

RFID is a tool and that is it used correctly it is wonderful, chose wisely.

Byron

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