Return on investment calculator for RFID ecosystem of high tech company

Authors:
Robert de Souza;Mark Goh;Balan Sundarakani;Wong T. Wai;Keith Toh;Wu Yong
Affiliations:
The Logistics Institute - Asia Pacific, National University of Singapore, Singapore;The Logistics Institute - Asia Pacific, National University of Singapore, Singapore and University of South Australia, Adelaide, Australia;Faculty of Business and Management, University of Wollongong in Dubai, Dubai, United Arab Emirates;GS1, Singapore;Institute for Logistics and Supply Chain Management, Victoria University, Melbourne, Australia;Department of International Business, Griffith University, Gold Coast, Australia
Venue:
Computers in Industry
Year:
2011

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Abstract

The use of RFID technology affords an opportunity for greater visibility in the supply chain and further supply chain automation, making the processes more streamlined, providing accurate and timely automatic data capture, thereby improving shipment reliability. This paper provides a case study of an RFID-enabled supply chain ecosystem focusing on a large high tech multi-national corporation based in Singapore. Specifically, the paper provides an implementation framework for the Return on Investment (ROI) calculator which trades off labor cost and productivity gains. The Supply Chain Operations Reference (SCOR) methodology is used to assess the operational level benefits of RFID implementation. We show how scalability is critical for RFID adoption.