CES 2008: Making money with RFID

HP demonstrates its ideas on how to get ROI from RFID technology.

The Consumer Electronics Show isn't just about gadgets and devices. It's also the home of several parallel conferences, including the Consumer Electronics Supply Chain Academy. Stepping off the beaten track of the conference floor can lead you to some interesting sessions, including details of how companies such as HP have been working with RFID tags.

The company has 33 manufacturing and distribution sites that are RFID equipped, and in 2007 it tagged 19 million cases, using 277 RFID readers and 202 RFID label printers. Many of HP's RFID sites are run by partners and contractors.

HP has had to be innovative. In one case antenna had to be redesigned. "RFID scanners have problems working around liquids and metal - and what we have with inkjet cartridges is a metal can of liquid," said HP's global RFID programme director Frank Lanza.

One successful implementation used RFID to handle printer product returns. Bundled cartridges have a finite life and boxes needed to be individually checked for cartridges that needed replacing. RFID tags on the boxes mean scanners can identify only the boxes that need to be opened. This improved cycle times by 50 per cent, increased capacity by 70 per cent and cut labour costs by $500,000 (250,000) a year; the project cost $1 million (500,000) but it will pay for itself in less than two years.

RFID ROI comes from various directions; improving supply chain operations, monitoring service levels and keeping products moving. "We're seeing that the product moves from the stockroom to the floor, enabling us to see what's in the back room that hasn't been brought forward to the shelves," said Patrick Javic, the industry development manager for RFID standards body EPCglobal.

RFID can show who's to blame if time-sensitive products like DVDs don't arrive in stores in time for release dates, so you can invoke contract penalties. It can also be used to store after sales information, for example linking to a product recycling information.

Featured Resources

Modern governance: The how-to guide

Equipping organisations with the right tools for business resilience

Free Download

Cloud operational excellence

Everything you need to know about optimising your cloud operations

Watch now

A buyer’s guide to board management software

Improve your board’s performance

The real world business value of Oracle autonomous data warehouse

Lead with a 417% five-year ROI

Download now

Recommended

Canon Image Formula R10 review: Makes scanning a dream
peripherals

Canon Image Formula R10 review: Makes scanning a dream

19 Jan 2022
Kodak S2085f review: A ferociously fast network scanner
peripherals

Kodak S2085f review: A ferociously fast network scanner

20 Sep 2021
Fujitsu ScanSnap iX1600 review: Unparalleled cloud support
peripherals

Fujitsu ScanSnap iX1600 review: Unparalleled cloud support

16 Sep 2021
Canon imageFORMULA DR-M260 review: The ideal workhorse
peripherals

Canon imageFORMULA DR-M260 review: The ideal workhorse

14 Sep 2021

Most Popular

Google Cloud to open new office in Pune, India
Cloud

Google Cloud to open new office in Pune, India

24 Jan 2022
Dell XPS 15 (2021) review: The best just got better
Laptops

Dell XPS 15 (2021) review: The best just got better

14 Jan 2022
Sony pulls out of MWC 2022
Business operations

Sony pulls out of MWC 2022

14 Jan 2022