Sometimes, the ROI of a new technology isn’t in what you gain — it’s in what you no longer have to do.
During our recent AbeTech + Xemelgo webinar, Akhila Tadinada CTO of Xemelgo shared a powerful story:
“We had a customer that had 11 expediters whose entire job was just to locate stuff. After implementing RFID, they reallocated all of those expediters because they no longer needed to look for any items.”
This is where the true power of RFID comes into focus.
The Problem: Manual Searching Is Expensive
In many operations — from manufacturing floors to distribution centers — items don’t always end up where they should. Tools get misplaced. Work-in-process orders stall in unexpected locations. Inventory slips into the wrong rack or bin.
Without real-time visibility, the only way to find those items is to send someone looking. In this case, 11 people. Every day. Full time.
That’s thousands of labor hours each month producing zero direct value. And it’s not just a labor cost problem — missing items delay production, hold up shipments, and frustrate customers.
The Solution: Real-Time RFID Visibility
By tagging key items and installing RFID readers at strategic choke points, this enterprise gained real-time insight into asset location.
Instead of guessing where something was last seen, the team could:
- Search by item in the RFID dashboard
- See its last recorded location in seconds
- Walk straight to it without wasted motion
What used to take hours — or sometimes days — now took minutes.
The ROI: More Than Labor Savings
On paper, the most obvious return came from reassigning those 11 expediters to more productive roles. That’s a massive labor cost recapture.
But the downstream benefits were just as impactful:
- Faster throughput — production stayed on schedule without delays waiting for missing items.
- Higher morale — employees weren’t stuck on frustrating scavenger hunts.
- Better customer service — shipments went out on time, with fewer errors.
- Lower inventory carrying costs — no need to overstock “just in case” something couldn’t be found.
These are the kinds of operational wins that make RFID a strategic advantage, not just a technology upgrade.
Why RFID ROI Is Often Undervalued
Many enterprises evaluating RFID focus solely on the technology’s ability to count inventory. But the hidden ROI comes from process changes — like eliminating low-value work and redeploying people where they can make a bigger impact.
As Akhila explained, real-time visibility can even change business models. When customers see you can guarantee accurate, on-time delivery, they prefer doing business with you — and may demand the same visibility from all their suppliers.
Your ROI Might Be Hiding in Plain Sight
If you’re struggling to quantify the ROI of RFID, look beyond inventory accuracy metrics. Consider:
- How many labor hours go into manual searches?
- How many production delays stem from missing items?
- How often do you over-purchase to compensate for lack of visibility?
Chances are, your ROI case is already there — you just need the data.
Turn Lost Time Into Competitive Advantage
RFID isn’t just about tracking assets. It’s about reclaiming wasted time, unlocking your workforce’s potential, and creating a more agile operation.
AbeTech designs and deploys RFID systems that deliver ROI fast — and scale with your business.
