Ramping Up, Rolling Out
Despite the indisputable benefits, pricing and standardization issues are considered by many to be the chief stumbling blocks to RFID implementations.
Allen explained that costs for implementing RFID depend on the number of touch points and read points that are required; for instance, whether it's just around warehouse dock doors or throughout the entire warehouse. "Costs can be controlled from a reader perspective by having multiple antenna systems working off of a single reader," he added. "In terms of hardware, a reader is the single most expensive component, followed by the antenna. The tags can cost less than $0.30 apiece, but when tagging thousands of items, it adds up. A midsized company could spend $100,000 on an RFID system and accomplish exactly what it wants, and see a return on investment. A major retailer with multiple national and even world-wide locations could spend tens of millions."