Don't analyze RFID cost one sidedly

Don't unilaterally analyze the cost of RFID

normal> the standard is an important aspect that affects the popularization of RFID applications. However, the insiders interviewed about the maintenance and precautions of the cold thermal shock testing machine believe that with the coordination of Chinese standards and various relevant organizations, it is not difficult to solve the standard. Therefore, the value or return on investment of RFID is the key to the hesitation of government and enterprise CIOs

Zhuzhaojun, senior technical manager of Xunbao technology company in the United States, said that the cost of RFID tags is affected by many factors, mainly by the technological breakthroughs of various manufacturers, and the price can be reduced by technological innovation. I believe no one can predict the specific time, exact date and how much RFID will be reduced, but I think the time when the tag is reduced to a few cents will be the time for Chinese users to adopt it significantly. At present, from the perspective of cost, there may be a certain distance between the cost of RFID and the acceptance ability of Chinese enterprises. However, I believe that with the innovation of technology, the price of RFID tags will decline significantly. If the RFID tag cost can be controlled within a few cents, some end users in China, including retail enterprises, manufacturing enterprises, or logistics companies, will begin to adopt RFID technology. Whether the new technology can reduce the cost of the company's business operation is the main consideration for many end users to adopt RFID in the existing production lines

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normal> but Gartner global research Yongxing special steel also issued an announcement. Kristian steenstrup, vice president of research, disagreed with this. He said that theoretically, everyone is discussing whether to produce RFID tags with a cost of 5 cents, but in fact, the cost is not important. What matters is how you use this technology. Now passive tags are 40 cents per tag, while active tags are as high as $per tag. Generally speaking, low-cost labels are suitable for consumer packaging, that is, low-cost products. You are deciding whether to use this label, not by how low its absolute cost is, but by the comparison between the value after use and its cost. For example, the active tag is a little expensive in terms of price alone, but if it is used to monitor an expensive machine and equipment, it is still worth the money, and it will be expensive if it can be used on a bottle of mineral water. Therefore, the cost is a relative concept. It doesn't mean that high or low can determine the value, but depends on how you use it. As long as you use it properly, it will be worth it

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normal>, Can we spend less money to bring greater benefits? On the other hand, users also need to look at the hidden cost and total cost of ownership of RFID. RFID tags can be reused. If they are used frequently, the cost of each use is not high

Dai Dingyi, vice president of China Federation of logistics and purchasing, said that the cost problem or return on investment involves two aspects: the price of the chip and the infrastructure construction cost of the system. The price of chips has been falling, and some have reached a few cents. In fact, the price of chips is always relative. For automotive and aircraft parts, the chip industry can afford dozens of dollars. For commodities such as radish and cabbage, a few cents of chips is also too high a cost, and the return on investment is difficult to guarantee. This is actually to find a suitable application entry point. As for the investment in infrastructure, it must be difficult for enterprises to invest entirely. Therefore, the state should have a plan and carefully study the infrastructure construction that RFID can improve product quality to achieve steady development and rapid development of technology application

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normal> source of information: Information System Engineering