A Brief Guide On Implementing RFID Technology On A Budget
Radiofrequency Identification (RFID) has been gaining significant traction in an array of industries due to its ability to enhance inventory management, supply chain visibility, and operational efficiency. Indeed, an increasing number of businesses are now using RFID as their primary asset-tracking system because it can track and monitor assets with more accuracy and security than other technology solutions.
However, implementing RFID technology comes with substantial costs. There are different kinds of costs usually involved with the implementation of RFID, such as integration costs, hardware costs, software costs, and service costs. That said, there are several things a business can do to cut the costs of adopting RFID technology. Read on to find out how RFID can be implemented effectively, even on a limited budget.
1. Assessment of needs
Assessment of needs and objectives is one of the most important things that a business should do before deciding to invest in RFID technology. What are the issues that the company wants to solve with RFID? What are the advantages they expect to gain from RFID? How will the company measure return on investment (ROI) with RFID? These are the questions that a business should be asking to determine the scale, scope, and budget of its RFID project. Prior assessment also helps to identify the most crucial and valuable applications of RFID for the business.
2. Selecting a suitable RFID system
There are various types of RFID systems, such as active, passive, and semi-passive. These RFID types come with different capabilities, features, and costs. To make a cost-efficient RFID investment, a business should carefully choose the right RFID system for its specific requirements and environment. For instance, if a company’s regular operations involve tracking items over long distances and in extreme conditions, it is highly advised to invest in an active RFID system with a longer read range and a battery-powered tag.
3. Leveraging existing infrastructure
One way for a business to minimise the cost of implementing an RFID system is to leverage its existing equipment and infrastructure. For instance, if a company has printers, barcode scanners, and software, it can utilise these existing tools and integrate them with RFID tags, readers, and middleware. It can also reuse some of its current labels and tags by adding RFID inlays or chips to them. By maximising its existing infrastructure, a company can save money, resources, and time, as well as avoid unnecessary replacement or duplication.
4. Partnerships or external fundings
Another excellent way to overcome the cost barriers of adopting RFID is to seek partnerships or external funding. A company may be able to find incentives, grants, or subsidies from industry associations, research institutions, or government agencies that support RFID innovation. It may also be able to partner with suppliers, other businesses, or even customers who utilise or benefit from RFID. By looking for partnerships or external funding, the company can share the risks, costs, and rewards of an RFID system.
5. Gradual RFID implementation
Implementing RFID technology can also become more affordable if it is carried out incrementally and gradually. A company does not have to deploy RFID across its whole business at once. It can begin with a pilot project that examines and assesses RFID technology in a specific area and on a small scale. It can then gradually scale up and expand its RFID implementation to other processes and areas based on the feedback and outcomes of the pilot project. This way, the company can reduce the upfront costs and optimise the performance of its RFID system.
Conclusion
Implementing an RFID system comes with significant costs. Nonetheless, the benefits that this technology brings totally outweigh its upfront costs and maintenance fees. Furthermore, there are numerous solutions that can help businesses minimise the cost of incorporating RFID into their operations. By following these recommended cost-cutting measures, a business can absolutely enjoy the advantages of an RFID system without necessarily breaking the bank.
