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Is this the right time to incorporate RFID technologies into your business? What is the ROI?’

Is this the right time to incorporate RFID technologies into your business? What is the ROI?’. David Myers CEO AiDC Solutions Limited Chairman AIM UK Prague – 30 th March 2011. Agenda. Calculating ROI RFID Diagnostic Real-world examples. ‘There is no ROI with RFID’.

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Is this the right time to incorporate RFID technologies into your business? What is the ROI?’

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  1. Is this the right time to incorporate RFID technologies into your business? What is the ROI?’ David Myers CEO AiDC Solutions Limited Chairman AIM UK Prague – 30th March 2011

  2. Agenda • Calculating ROI • RFID Diagnostic • Real-world examples

  3. ‘There is no ROI with RFID’ • Define the business process • Inputs, Activities, Outputs • Define the Costs of the Activities • Time, People, Objects, Space • Technology Options • In Supply Chain we look at: • Receiving/Raw Materials • WIP • Shipping

  4. Consider what RFID DOES not what RFID IS • RFID is a technology which improves visibility • Closed Loop Supply Process • ASNs, Production Scheduling, WIP, inbound/outbound logistics, Resource Utilisation • Open Loop Supply Process • WIP Flows, Inventories, Safety Stock, Storage • Value is the elimination of cost in the forms of time, unnecessary manual work, equipment, surplus inventories or space.

  5. Diagnostic Matrix Vehicle Container Pallet Tote Bin Case Singles

  6. Pallet Tagging Reusable Low Cost Automatic Pallet Reading Labour Savings Read/Write

  7. Tote/Tray Tagging Robust Low Cost (Under 70 cents) Robust Reusable Automatic Tote Reading Labour Saving Good Payback

  8. Case Tagging Product and Packaging Material • Metal • Fluid / High % Water • Wood /Paper Case • Not reusable • Cost of the tag becoming very significant • Buried Tags in pallet not readable • Multi Tag reading

  9. Hadfields Stockport • Rug & Carpet Supply • 200,000 Custom made rugs • Barcode labels supplied to manufacturers • Thousands of variants • Variety of manufacturers

  10. Hadfields Stockport • Container Deliveries • 3,000 to 4,000 rugs per delivery • 60 deliveries per year

  11. Hadfields Stockport • Incoming Stock; • Unloaded and checked manually • Unload time 3 days for 7 men

  12. Hadfields Stockport • RFID enabled labels • Unloaded and placed into container with known quantity of rugs • Container wheeled past reading gate and RFID tags read • Quantity verified • Information tied to stillage • Sent to store

  13. Hadfields Stockport • RFID advantage; • Unloading - reduced from 147 hours to 20 hours • Cost saving per year £58,000 • Added Bonuses; • Stock accuracy • Despatch and tracing accuracy

  14. Poor Printing and label Positioning causes Read Errors • Read Errors cause Downtime/Rework Errors like this cost NGFE on average £25,000 Per Year

  15. Saving £18,500 Per Year

  16. One Label – Means Less Bobbin Cleaning Potential Saving £50,000 Per Year

  17. RFID - it’s all around you! • Access Pass • Toll Roads • Transportation (Smartcard) • Tote box, Pallet & Load ID • Clothes tracking (M&S) • Libraries

  18. RFID Growth Sales $ Millions

  19. CallAiDC Solutions Limited+44 1422 399530or visitaidc-solutions.co.uk

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