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For Application Development & Delivery Professionals

The ROI Of RFID For Supply Chain Visibility

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

July 18, 2008

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Why Read This Report

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

  • The Business Value Of RFID-Driven Supply Chains Remains Elusive
  • Three Factors Determine The ROI Of RFID For Supply Chain Visibility
  • Calculating ROI For Item-Level Visibility Across Manufacturing, Distribution
  • RFID For Supply Chain Visibility Only Pays Off With Full Systems Integration
  • recommendations

  • Focus On Value To Align And Mobilize Supply Chain Stakeholders
  • Supplemental Material