AXCESS International Inc., a leading provider of RFID systems, announced positive results for a case study determining the financial return on investment (ROI) for a customer using RFID for container management.
The study was based on the AXCESS ActiveTag system implemented at a chemical plant facility. The system was implemented to automatically account for the pool of flow bin containers, also known as Intermediate Bulk Containers (IBC), a portion of which were regularly missing, returned late, or damaged by customers.
Industry statistics for asset shrinkage due to leakage to other companies, sub-pooling, and customer non- returns are typically 2% of the total base per year, but can be as high as 10%. Industry case studies have also found RFID enabled reductions in the pool of logistics assets as high as 44% through improvements in conventional physical tracking and more efficient management.
The AXCESS study followed the successful implementation of the ActiveTag AssetActivator system using the Company's battery-powered RFID tags placed on containers and activated automatically on-demand (in semi-active or in "hands-free" mode) at entry/exit points for truck and rail. The system provided real-time asset inventory counts, facility location determination for the containers, and full asset management. The ROI study covered more than 3500 IBC's at the facility with 4 different entry/exit points. Assuming only a 1% reduction of missing containers, the study identified over $250,000 in total savings and a 14 month payback. At 2%, $700,000 was saved with a 7 month payback. Although labor savings were found, they were not included in the results as the container asset savings were so dramatic. The study also concluded that further reductions in "lost" assets dramatically increased ROI, providing a solid business case for using semi-active RFID for closed-loop container management and loss protection.
"AXCESS continues to show the superior economic and business benefits of using on-demand or semi-active RFID in typical enterprise operations," stated Allan Griebenow, president and CEO of AXCESS. "RFID brings visibility to the enterprise in areas where no visibility existed previously. Our RFID solutions leverage the benefits of zero human involvement operations to automatically and accurately manage a pool of re-usable assets that clearly reduces costs and potential exposures for companies of all sizes. The unattended and automated nature of a system like this requires zero human involvement and derives the maximum return for the customer."
The results of the study are contained in a white paper entitled: "The ROI for Automatic Container Tracking Using RFID". The paper is available from the Company's Web site at www.axcessinc.com or by calling Stephanie Collins at 972-407-6080.
AXCESS' patented ActiveTag RFID product uses small, battery powered tags (generically called "semi-active" tags) that when automatically activated, transmit a wireless message typically 30 to 100 feet to hidden palm size receivers. The receivers are connected via an industry standard interface to existing security alarm equipment or simultaneously networked to enterprise software. Optionally, the tag system can also be used for actionable security measures, including video recording and live remote video transmission. The tags are used for a variety of enterprise productivity applications including automatic personnel access control and tracking, automatic vehicle access control and payload management, automatic asset management and protection, as well as special purpose sensing. Automatic e-mail alerting and paging is offered for rapid response to security related incidents.
About AXCESS International Inc.
AXCESS International Inc. (OTC Bulletin Board: AXSI - News), headquartered in greater Dallas, TX, provides Active and Semi-Active RFID (radio frequency identification) systems for asset management, physical security and supply chain efficiencies. The battery-powered (active) RFID tags locate, identify, track, monitor, count, and protect people, assets, inventory, and vehicles. AXCESS' RFID solutions are supported by its integrated network-based, streaming digital video (or IPTV) technology. Both patented technologies enable applications including: automatic "hands-free" personnel access control, automatic vehicle access control, automatic asset management, and sensor management. AXCESS is a portfolio company of Amphion Capital Partners LLC.