Economic evaluation of RFID technology in the production environment

Abstract

The aim of this paper is to present an economic evaluation framework of an RFID system implementation through a pilot project with the aim of streamlining logistic processes and compliance with higher level requirements. The company involved in the project belongs to the CPG (Consumer Packaged Goods) food industry, and in particular to the alimentary industry, whose principal scope was to comply the new norms of the sector by implementation of a better traceability system. This system, besides being very effective for the scope of the project, also had a huge impact in economic terms on logistics resources and cost reduction. For this reason, the discover of the RFID technology for the company has been greatly appreciated at management level, and today other fields of application are under evaluation. The added value of this article is contained not only in the results obtained in the economic evaluations, but also in the applied methodology, evidencing the advantages obtainable in the processes by cutting no added value operations. The economic analysis has thus been conducted on the basis of this TO-BE process streamlining. © 2013 Fera et al.