For Business Process & Applications Professionals (Length: 18 pages)

July 18, 2008

The ROI Of RFID For Supply Chain Visibility

A Total Economic Impact™ Analysis Links Gains To Depth Of Systems Integration

This is the first document in the "ROI Of RFID" series.

by Roy C. Wildeman, Patrick M. Connaughton

with Sharyn Leaver, Jon Erickson, Varun Sedov


Executive Summary (This is a document excerpt)

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.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemThe Business Value Of RFID-Driven Supply Chains Remains Elusive

itemThree Factors Determine The ROI Of RFID For Supply Chain Visibility

itemKey Benefits: Top-Line Opportunities Are The Primary Value; Efficiency Gains Are Secondary

itemKey Costs: Systems Integrations Drive Starting Costs, While Tags Dominate Recurring Costs

itemRisk Analysis: Coordination, Systems Integrations, And Technology Change Issues Loom

itemCalculating ROI For Item-Level Visibility Across Manufacturing, Distribution

itemRFID For Supply Chain Visibility Only Pays Off With Full Systems Integration

recommendations

itemFocus On Value To Align And Mobilize Supply Chain Stakeholders

itemSupplemental Material

Forrester interviewed 13 vendor companies and systems integrators: Acsis, AeroScout, Alien Technology, Capgemini, Clarkston Consulting, Ekahau, IBM, Intermec Technologies, ITC Infotech, Motorola, OATSystems, SAP, and Zebra Technologies.

Related Research Documents

itemMaking Sense Of Sensor Data

September 26, 2007

itemManufacturers Embark On The X Internet Voyage

July 3, 2007

itemCase Study: Achieving ‘Last Tactical Mile' Supply Chain Visibility Using Active RFID

April 9, 2007

itemTopic Overview: RFID

April 26, 2006

Find Documents In Related Categories

This document falls under the following categories. Click on a link below to find similar documents.

Analyst: Patrick M. Connaughton, Roy C. Wildeman
Technology: IT Spending & Budgeting, Packaged Applications, Supply Chain Management, Total Economic Impact™
Industry: Manufacturing, Retail, Retail Technologies, RFID
Geography: Asia Pacific, Europe, North America

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