APQC’s data indicates that there is no clear best choice among RFID tagging strategies. Organizations that have adopted a specific tagging strategy perform better on some logistics metrics than on others. When the potential for RFID requirements from customers is considered, the situation becomes more complex.

When evaluating whether to adopt an RFID tagging strategy, and which strategy to adopt, organizations should look at their unique situations and consider several factors. How would a particular strategy fit into the organization’s current logistics processes and would it improve logistics performance? How would the RFID system function on a day-to-day basis? What would be the cost of purchasing the RFID system? And would additional employees be needed to use and maintain the new technology?

Although RFID tagging offers the potential for more efficient logistics processes, an organization looking to implement this technology should weigh the potential benefits against any additional costs and longer delivery times that could result.

APQC is a member-based nonprofit and a proponent of benchmarking and best practice business research. Working with more than 500 organizations worldwide in all industries, APQC focuses on providing organizations with the information they need to work smarter, faster and with confidence.