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RFID Costs

Frequently Asked Questions About RFID What is the estimated incremental cost for adopting RFID? What is a ballpark figure for implementing RFID in a warehouse and distribution process? How do smart label costs compare to conventional thermal/thermal-transfer printed labels? What is the estimated incremental cost for adopting RFID? Back to Top If one is discussing incremental costs over and above what was invested in your bar code infrastructure, then you can say that you will be making an investment in tags, printer/encoders, readers, middleware, and professional services to integrate these components into your bar code legacy environment. If you are not working with bar codes already, obviously you will need to make an investment in back-office, manufacturing, or WMS systems to use RFID data. What is a ballpark figure for implementing RFID in a warehouse and distribution process? Back to Top According to Forrester Research, a typical supplier that attempts to comply with a mandate can expect to spend as much as $9 million on RFID—depending on the size of its distribution network and Wal-Mart volume. According to this research, the largest expenditures are tag costs and additional warehouse labor. Again, it is stressed that this figure is derived from studying one company seeking compliance with the Wal-Mart mandate. However, this study provides a good perspective on the areas from which costs will derive. How do smart label costs compare to conventional thermal/thermal-transfer printed labels? Back to Top A smart label runs in the vicinity of about 50 cents per label versus about one cent for a conventional label. This is mainly due to the addition of the tag. This cost is also variable based on the total volume printed and the economies of scale associated with large quantities.