Rfid Asset Tracking Cost Benefit Analysis

Topics: RFID, Cost-benefit analysis, Cost Pages: 2 (1381 words) Published: August 1, 2012


This paper outlines the cost‐benefit analysis of using Ultra High Frequency (UHF) Radio Frequency Identification  (RFID) technology in an asset‐tracking application.  To facilitate the analysis, RFID will be compared against the  incumbent technology, bar‐coding.  An experiment comparing these two technologies was conducted, and the  findings from this experiment are further analysed. 


Search for missing items

Annual Stock take

Deploy, repair, relocate, refresh and return
Figure 1: Hierarchy of Needs for Asset Tracking 


  Number of  Assets  10,000  20,000  50,000  100,000  Number of Reads   per Asset per Year  14.11  14.57  16.06  18.71  Annual Labour  Cost for Barcode  $12,721.70 $26,273.45 $72,398.94 $168,700.81 Annual Labour  Cost for RFID  $1,361.96 $2,812.79 $7,750.90 $18,060.81 Annual Cost  Benefit  $15,064.00  $23,685.80  $65,254.07  $150,640.00 

Table 1: Annual Cost Benefit compared to number of assets 

Table 1 lists the annual labour cost savings when comparing bar coding to RFID processes.  For an organization  with 100,000 assets, the annual labour cost savings exceed $150,000. This cost saving carries forward (future  years) into perpetuity.       

The purpose of this experiment is to ascertain the time (and hence cost) savings that can be achieved through the  use of RFID in Asset Tracking.  This experiment only focuses on operational cost savings that arise due to the day‐ to‐day work activities involved in asset tracking.  As well as these definite operational cost savings, other cost  savings that are present include:   Improve utilization rate of existing assets   Increased productivity through more accurate data recording   Security and theft prevention ...
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