6 Ways RFID Technology can Increase Operational Efficiency & Increase ROI

6 Ways RFID Technology can Increase Operational Efficiency & Increase ROI

SMS_RFID_Infographic_0615

6 Ways RFID Technology can Increase Operational Efficiency & Increase ROI

As of 2014, only 29.4% of manufacturing managers have visibility to real-time asset data.
Many managers estimate their inventory accuracy at 80%.
Research suggests that number is closer to 63%.
RFID Technology gives managers accurate, real-time inventory visibility.
But how does RFID deliver ROI?

1 – Avoid chargebacks

  • RFID technology enables the automatic generation of ASNs (Advance Ship Notices).
    • Chargeback incidence reduction: 54.3%

2 – Recover shipping assets

  • Tracking returnable transport items (or RTIs) with RFID technology can generate significant savings.
    • Reduction in overall RTI stock size: 14.1%
    • Cost reduction in asset investment: 5.5%
    • Average time to ROI for RTI tracking: less than 12 months

3 – Reduce manual count time

  • Time to scan 10,000 items with a barcode reader: 53 hours
  • Time to scan 10,000 items with RFID: 2 hours

4 – Slash safety stock

  • Average reduction in safety stock requirements: 27%
  • Net savings from reduced safety stock: 10-30%

5 – Accelerate accounts receivable

  • Automatic shipment verification and invoicing eliminates invoicing disputes and reduces billing cycles, in some cases from 30-45 days to just minutes.
  • One U.S. B2B manufacturer reduced AR disputes by 40%.

6 – Minimize Shrink

RFID technology allows companies to create detailed audit trails for individual products, tools, and equipment.

  • Average reduction in shrinkage: 18%

Bottom-line impact of RFID

Supply chain cost reduction: 3-5%

Average revenue increase: 2-7%

“Although RFID implementations are not without costs and risks, typical companies in manufacturing, warehousing and distribution and retail have been known to achieve 200% ROI or more from these projects.” -Tom Pisello, author and entrepreneur

Installing systems that leverage the capabilities of RFID is a complicated process.

Partner with the SMS Group. Our passion is data collection and integration—bringing you the tools that bring clarity to your business.

Our RFID experts are ready to assist your company in making the most of this powerful technology. To learn more, call 937-498-2700 or visit us at www.thesmsgroup.com.

Description

Share this

Did you know that less than half of manufacturing managers have access to accurate, real-time data about the location and status of their assets and inventory? In manufacturing, as in other industries, inaccurate information can cost you.

RFID is a proven technology designed to deliver accurate, real-time inventory visibility. Its capabilities are impressive, but its most important feature is its impact on your bottom line.

Start streamlining your business. Talk to us!

Name

Email

Company

Phone

I am interested in:

 Finding new efficiencies and improvements Using new technology to increase data collection, speed and accuracy A custom app or program to increase efficiency

© 2021 The SMS Group. All rights reserved.