RFID Applications within the supply chain
Assessing the return on investment of RFIDs added features instead of focusing on tag cost might be the strategy to be followed by users. Nevertheless, sometimes, the payback from the implementation of RFID technology can be difficult to calculate. In order to achieve low price RFID tags it is necessary to trade-off various factors like functionality, data capacity and construction. Presently chipless tags represent the lowest level of cost for RFID tags. The chip with the tag represents the most expensive component and this can be up to 90 per cent of the tag value (Das et al, 2002), Many commentators state that for RFID tags to be used widely the price of a chip-based tag must be reduced to below one U.S. cent. This would enable full scale item level tagging within the supply chain. By early 2003 the cost of chip smart labels was around 40 U.S. cents and it is expected that by 2004 these costs will drop to 15-20 cents and finally to 5 cents by 2007. However, the full scale implementation of item level tagging will require the tags to cost one cent or less (IDTechEx Ltd, 2003a).
RFID Applications within the supply chainAssessing the return on investment of RFIDs added features instead of focusing on tag cost might be the strategy to be followed by users. Nevertheless, sometimes, the payback from the implementation of RFID technology can be difficult to calculate. In order to achieve low price RFID tags it is necessary to trade-off various factors like functionality, data capacity and construction. Presently chipless tags represent the lowest level of cost for RFID tags. The chip with the tag represents the most expensive component and this can be up to 90 per cent of the tag value (Das et al, 2002), Many commentators state that for RFID tags to be used widely the price of a chip-based tag must be reduced to below one U.S. cent. This would enable full scale item level tagging within the supply chain. By early 2003 the cost of chip smart labels was around 40 U.S. cents and it is expected that by 2004 these costs will drop to 15-20 cents and finally to 5 cents by 2007. However, the full scale implementation of item level tagging will require the tags to cost one cent or less (IDTechEx Ltd, 2003a).
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