Intrinsic value is the perceived value of a Company, possible investment or Asset, taking into account both tangible and intangible factors, using fundamental analysis. Also called the true value, the intrinsic value may or may not be the same as the current market value.
Any ROI Calculation needs to take the intrinsic value of the automation project to understand the true value
Actual and Projected Cash Flows are a key element of the decision to automate calculation.

Estimated breakdown of RFID System costs

Calculating the “AS IS” position

The current system problems need to be totally costed, along with the potential cost savings if the problems are 100% solved. To view the SmartRFiD formula for calculating visibility inaccuracy.

Some general guidance points:

  • Everyone desires 100% problem solving, what if it is slightly less, how low can we go Run what if analyses
  • Single Item Replacement cost, usually higher than book cost
  • Looking for missing items
  • Interruptions to production
  • Incorrect shipments
  • Lost sales
  • Reduced customer satisfaction
  • Inventory inaccuracy
  • Management time
  • Downstream process issues
  • Physical Count time

Calculating the value of an RFID System is not difficult as long as a clear understanding of the existing process costs can be determined,
Collaborating with a reputable and experienced RFID Systems integrator and a basic understanding of how this technology platform can be best utilised going forward.
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