RFID: Survey says 37% of RFID end users expect ROI within a year
Quick, positive return on investment is especially important during recession, ABI research reports.
By Staff -- Modern Materials Handling, 2/10/2009
A survey conducted by ABI Research revealed that rapid, positive return on investment (ROI) estimates are critical to RFID purchasing decisions. The survey of 185 organizations conducted in mid-2008 reported that 36.7% of RFID end users anticipated a return within the first year.
ABI Research practice director Michael Liard, said, “We asked survey respondents about their hopes and expectations for ROI on their RFID investments. While a substantial majority saw 12 to 24 months as a reasonable expectation, more than one third anticipated a return within the first year.”
Here’s how long respondents said they are willing to wait for positive ROI:
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Less than 12 months 36.7%
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12-18 months 25%
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18-24 months 13.3%
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More than 24 months 6.7%
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Do not know 18.3%
A general lack of clear ROI models and data on real-world results has slowed adoption of RFID technology, particularly in open-loop supply chain environments. This lack of data is the third-highest ranked reason for non-deployment, according to ABI.
One of the great problems in formulating useful ROI models and setting goals has been the reluctance of many end users to share what they have learned. “It’s tough,” said Liard, “and it has been holding parts of the industry back. But somebody who’s getting great results with RFID is often understandably wary of letting competitors know how much more competitive it is making them. But if we want this market to move forward in a recession, we need to start talking about these things as proactively as we can.”
Some RFID projects are still moving forward; others have been delayed by the recession, or put on hold.
“The good thing,” Liard concludes, “is that we’re not hearing much about cancellations. That’s a positive sign.”
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