Report finds labor, cost savings are enabled by RFID

The Aberdeen Group released a new study revealing that 93 percent of all organizations point to radio frequency identification (RFID) as a significant method for reducing the cost of doing business. Further, best-in-class organizations report the ability to decrease the total value of spare parts on hand by 21 percent by leveraging their RFID data.

The Aberdeen report focuses on opportunities for cost control in four categories: labor waste, excess inventory, loss due to mishandling or misplacement of key components, and exception-handling. The report also notes that “none of these cost containments are possible without visibility into the inefficiencies of asset management, nor without technologies for identifying, addressing and correcting that waste. … The selection of RFID solutions and their integration with business intelligence and business process management systems plays a crucial role in the ability to turn process automation strategies into tangible cost savings.”

“RFID has the potential to improve productivity of workforces and to leverage information and assets across organizations,” said Russ Klein, research analyst with the Aberdeen Group.

To read the Aberdeen Group report “Where’s My Stuff?! Managing Work-in-Process with RFID” for a limited time, visit http://www.aberdeen.com/link/sponsor.asp?spid=30410531&cid=3988.