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The value of RFID tags: From product consumption to the importance of labor costs

In today’s society, with the continuous development of technology, RFID tags, as an important intelligent tracking tool, are gradually demonstrating their enormous potential in the business field. For items with high consumption and relatively high unit prices, such as some high-value goods in daily life, the application value of RFID tags is becoming increasingly prominent.

 

Why focus on the product’s unit price? This relates to the biggest selling point of RFID tags: their relatively low price. Only RFID tags that are cost-effective can be widely applied, especially in scenarios requiring a large number of tags, such as asset management and product tracing. If the unit price of the product is low and the profit margin is thin, using costly RFID tags may not be cost-effective.

 

Furthermore, the product characteristics of RFID tags determine their applicable scenarios, especially excelling in asset management and full-process tracing. Its characteristics of being inexpensive, battery-free, and having limited information transmission make it excel in managing a large number of products. From the perspective of business logic and product characteristics, scenarios requiring efficient asset inventory, process tracking, and anti-counterfeiting are most suitable for the application of RFID tags.

 

Recent studies have shown that there are differing views on the application of RFID tags. Some believe that the applicability of RFID tags does not depend on the product unit price but on the labor costs in the scenario. This view stems from the cost savings that RFID tags can bring to users.

 

Specifically, RFID tags can save costs in several ways. Firstly, they save on labor costs, especially in inventory processes, where RFID tags can significantly reduce labor costs. Secondly, RFID tags reduce loss costs by effectively reducing product losses. Additionally, saving time costs is also one of the advantages of RFID tags, enabling quick product location, reduced logistics time, and achieving refined operations to enhance the turnover efficiency of company funds.

 

Why are labor costs so important? Besides direct cost savings, other cost savings ultimately translate into labor cost savings. Therefore, for RFID users, the direct cost savings from labor costs are most significant. In fact, the most direct benefit felt by clothing and footwear brands that have already implemented RFID tags is the significant reduction in labor costs.

 

In conclusion, the application of RFID tags needs to consider the industry’s labor requirements and labor cost levels. Only in industries requiring a large amount of labor and with relatively high labor costs will the application benefits of RFID tags be more significant. Therefore, industries such as clothing retail and express logistics have become important areas for the large-scale application of RFID tags.

 

Finally, besides cost savings, RFID tags also have other values, such as anti-counterfeiting tracing, anti-diversion, and full-process product tracing. Although these effects do not directly reflect in economic benefits, with the increasing societal demands for product safety and environmental protection, the application of RFID tags will gain greater momentum. The application value of RFID tags is not only reflected in cost savings but also in their ability to promote industrial development and meet societal needs.
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Exploring the Most Effective Applications of Various RFID Tag Types