Economic Evaluation of RFID Investments in Cargo Operations

Abstract

Third-party logistics providers (3PL) store and transport large volumes of different goods and deal with a number of logistics services clients simultaneously. Due to the increasing demand for automatic identification, 3PL providers turned to RFID to help them improve total product traceability and increase accuracy. However, the implementation of RFID within a 3PL company is a complex process. Evaluation of both operational performance and economic feasibility is necessary to appropriately assess the value of RFID technology. This chapter focuses on this aspect of RFID implementation in cargo operations of 3PL providers.