Some of the main benefits that RFID can provide are:

• The solution does not require a line of sight access to be able to read tags.
• The tag can trigger security alarm systems if removed from its correct location.
• Reader and tag communication are not orientation sensitive.
• Automatic scanning and data logging is possible without human intervention
• Each tag can have a unique product code like standardised Electronic Product Code (EPC-code) and still hold more information in an internal memory bank.
• Each item can individually be labelled.
• Tag internal data can be comprehensive, unique in parts/common in parts, and is compatible with data processing in ERP system.
• System provides a high degree of security and product authentication - a tag is more difficult to counterfeit than a simple barcode.
• The supporting data infrastructure can allow data retrieval and product tracking anywhere provided the reader is close enough to the tag.

Business benefits

The technical benefits of RFID create the basis for real business benefits. When there’s less risk of errors and when there’s real-time information about how the asset is being used and where it’s located, RFID can increase the efficiency of processes and save money. The return on  investment is the key issue when reviewing the general benefits of the system. For example the encapsulated re-usable tag’s cost is typically justified when calculating the eventual cost per use of an asset and when comparing it to the losses. The cost savings of an RFID system are often based on the following facts:

• An RFID system can increase productivity – as less monitoring is needed and both goods and information are handled more efficiently
• An RFID system makes it easier to respond to new circumstances as a result of information gained from the supply networks
• Less errors, higher reliability – no human intervention needed for reading the data
• Improved visibility and traceability – process monitoring, tracking of shipments and assets