Executive Briefings

RFID Business Benefits

RFID | Wireless | Mobility

Use of RFID technology can increase business productivity and reduce associated costs. To ensure that companies benefit from the advantages RFID provides it is important to understand how to adopt this technology.

The RFID Centre can give you an insight into how other companies have approached such implementations and the business benefits that have been derived in a number of business sectors including but not limited to:

  • Retail & CPG
  • Clothing & Apparel
  • Food & Drink Manufacturing
  • Leisure industry & Service sector
  • Logistics & Transportation
  • Health & Pharmaceuticals
  • Building & Construction
  • IT, Electrical & Electronics
  • Defence
  • Automotive
  • Livestock

By analysing current practices and procedures 8 main areas of benefit can be identified. These are:

Improved Productivity and Cost Avoidance

Identifying items by RFID involves less work than using barcode scanning and other less automated ways. This leads to greater process effectiveness in many tasks such as receiving and putting away, picking and shipping goods where the time required and cost of identifying items by RFID is substantially less than other methods.

Decreased Cycle Time and Taking Costs Out

RFID scanning is not a serial process, like traditional Barcode scanning, so the business can perform identical tasks much more quickly. This means processes moving goods through a supply chain are more efficient leading to a reduction in the need for larger inventories.

Reduced Rework

As RFID scanning has a greater first time pass accuracy this reduces the number of errors that are generated and retries needed.

Reduced Business Risk & Control of Assets

RFID tagging enables better audit and asset control. The ability to track and trace items better means assets can be located more easily. The opportunity for enhanced data collection leads to increased accuracy of record keeping and improved asset maintenance. Regulatory compliance can be achieved more effectively.

Improved Security and Service

Being able to validate information relating to an item enables increased security. This individual identification contributes to more effective access control, reductions in shrinkage and other losses and the ability to provide fast and efficient services at the point of need. Ability to authenticate information can prevent activities like counterfeiting and fraud.

Improved Utilisation of Resources

Information obtained by RFID scanning can be used to improve planning. Processes can be improved, time can be saved, assets can be utilised better.

Increased Revenues

By eliminating uncertainty companies will suffer less “out of stock” situations and obtain greater item availability, reducing lost sales and increasing choice leading to more sales.

Exception Management

RFID enables processes and procedures to be measured better. Until a process can be measured accurately it often can’t be improved. Decisions that are based on limited, inaccurate, out-of-date information are often poor decisions. The contribution information captured by RFID offers to IT applications will allow managers in companies to be alerted when compensatory business decisions need to be taken.

Examples of the implementation of RFID include:

  • Logistics & Tracking
    • Real Time Item Location/ Item Visibility & Status
    • Anti Theft/Tamper evidence
    • Authentication
  • Asset Tracking
    • Hospital Equipment
    • Laundry & Library systems
    • Reusable Assets
  • Personal Identification
    • Access Control
    • Animal Tagging
    • Car Immobilisers
  • Payment Systems
    • Road Toll
    • Electronic Tickets
    • Mass Transit Ticketing
  • Workflow Processes
    • Service/Maintenance Records
    • Remote Management
    • Mobile Data
  • Healthcare
    • Patient Operations
    • Drug Trials & Clinical Testing


RFID Technology | Standards | Business Benefits



Cable & Wireless
Cisco Systems
Cranfield University