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The ROI Of RFID For Asset Tracking
A Total Economic Impact™ Analysis Uncovers Big Benefits When Minimal Inventory Controls Are In Place
July 29, 2008 , 15 pages
by Patrick M. Connaughton, Roy C. Wildeman
Asset tracking using active Wi-Fi-enabled RFID tags is getting more interest these days. Why? For one, even with the high cost of tags, there's actually a clear ROI in sight for these investments. To illustrate this, we created two conservative ROI models profiling sample companies tagging more than 1,000 assets in a three-year period. The first sample company is a parts supplier to auto OEMs tracking reusable containers. The second is a hospital tracking mobile equipment. The biggest differences between the two scenarios were the number of inventory audits currently being performed and the amount of time it took staff to locate the asset when they needed to use it. The result: For the highly controlled parts manufacturer, an estimated 9% ROI. However, for the hospital with limited preexisting controls and staff that spend an inordinate amount of time searching for assets, the estimated return jumps way up to 69% ROI with cumulative benefits of more than a million dollars. Plus, future rewards like using the data to analyze and improve process flows are just as exciting.

The ROI Of RFID For Supply Chain Visibility
A Total Economic Impact™ Analysis Links Gains To Depth Of Systems Integration
July 18, 2008 , 18 pages
by Roy C. Wildeman, Patrick M. Connaughton
Among the various applications of radio frequency identification (RFID), employing the technology for supply chain visibility has generated particular enthusiasm and controversy for manufacturers and distributors across a variety of industries. Amid the hype, the business value of deploying RFID technology across these trading partners has been blurred by questions about costs, benefits, and scope whose answers are elusive. A Total Economic Impact™ (TEI) analysis of RFID for item-level visibility across manufacturing and distribution operations shows that investment with minimal systems integration is not likely to produce a return on investment (ROI) — at least not at today's prices. However, combining RFID-generated event data with the right business context from enterprise apps will produce a modest ROI and positive business benefits in a typical manufacturing and distribution supply chain.

Forrester TechRadar™: The Extended Supply Chain Application Ecosystem, Q2 2008
Wireless Fleets Forge Ahead; Global Trade Management Goes Mainstream
April 15, 2008 , 33 pages
by Patrick M. Connaughton
Skyrocketing oil prices, pressure from low-cost competitors and ever-changing, complicated global trade regulations are enough to make even veteran supply leaders want to hide their heads in the sand. Add to that mix an aging and expensive-to-maintain legacy IT infrastructure, and most teams can barely stabilize costs — never mind develop an innovative supply chain management (SCM) strategy to drive new revenue sources. But all is not lost: By selecting the right SCM technologies to invest in, supply chain and applications professionals can take incremental steps without taking unnecessary risk. As our TechRadar™ evaluation of supply chain applications shows, supply chain intelligence, mobile asset tracking, fleet management, and global trade management top the list of areas that deliver quick ROI and lay the groundwork for ongoing innovation.

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