The Benefits of RFID for Slab- and Coil-Logistics - Falken Secure ...
The Benefits of RFID for Slab- and Coil-Logistics - Falken Secure ...
The Benefits of RFID for Slab- and Coil-Logistics - Falken Secure ...
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Perfect Steel case study – all scenarios<br />
combined<br />
<strong>The</strong> total combined business case <strong>for</strong><br />
Perfect Steel features an ROI <strong>of</strong> 17.7 million<br />
euros or a net present value <strong>of</strong> 10.8 million<br />
euros after five years. <strong>The</strong> initial investment<br />
<strong>for</strong> the combined scenario is 7.3 million<br />
euros.<br />
In comparison, the total ROI <strong>of</strong> all three<br />
scenarios implemented individually is only<br />
16.9 million euros <strong>and</strong> the net present<br />
value is only 10.1 million euros after five<br />
years, while the individual investments<br />
would add up to 7.7 million euros (higher<br />
investment leading to a lower ROI / NPV).<br />
This is yet another reason why -- as was<br />
already stated in the introduction to the<br />
case study – <strong>RFID</strong> should not be regarded as<br />
a project or number <strong>of</strong> projects but rather<br />
as an infrastructure program. Only by using<br />
that infrastructure to support a growing<br />
number <strong>of</strong> use cases will allow companies<br />
to maximize the benefits this technology<br />
promises.<br />
Combined Business Case Year Business Rollout 2008 2009 2010 2011 2012<br />
Benefit Summary<br />
Application<br />
Project-Specific <strong>Benefits</strong><br />
Growth Rate n / a n / a 5,00 % 5,00 % 5,00 % 5,00 %<br />
Asset Utilization One-Off <strong>and</strong> Recurring combined 2.876.500 € 2.126.125 € 2.182.431 € 2.241.553 € 2.303.630 €<br />
Operational Efficiency One-Off <strong>and</strong> Recurring combined 992.200 € 1.041.810 € 1.093.901 € 1.148.596 € 1.206.025 €<br />
Safety & Security One-Off <strong>and</strong> Recurring combined 2.377.909 € 2.442.259 € 2.509.827 € 2.580.772 € 2.655.266 €<br />
6.246.609 € 5.610.194 € 5.786.158 € 5.970.921 € 6.164.921 €<br />
Cost Summary<br />
Cost Type<br />
Project-Specific Costs<br />
<strong>RFID</strong>-Hardware 170.200 €<br />
Initial Deployment 77.000 €<br />
System <strong>and</strong> Process Integration 6.600.000 €<br />
Tags 634.400 € 652.798 € 639.475 € 626.153 € 612.830 €<br />
Hardware Maintenance 8.510 € 8.510 € 8.510 € 8.510 €<br />
S<strong>of</strong>tware Maintenance<br />
General <strong>RFID</strong>-S<strong>of</strong>tware Plat<strong>for</strong>m Cost (Common Services)<br />
300.000 € 300.000 € 300.000 € 300.000 €<br />
S<strong>of</strong>tware Licenses 250.000 €<br />
Custom Component Development 100.000 €<br />
24 / 24 Operations Support (partial) 50.000 € 50.000 € 50.000 € 50.000 € 50.000 € 50.000 €<br />
Vendor Support & S<strong>of</strong>tware Updates 25.000 € 25.000 € 25.000 € 25.000 € 25.000 €<br />
Component Maintenance 5.000 € 5.000 € 5.000 € 5.000 € 5.000 €<br />
7.247.200 € 714.400 € 1.041.308 € 1.027.985 € 1.014.663 € 1.001.340 €<br />
ROI-Summary<br />
Total Cumulative Savings 6.246.609 € 11.856.803 € 17.642.962 € 23.613.882 € 29.778.804 €<br />
Total Cumulative Costs 7.247.200 € 7.961.600 € 9.002.908 € 10.030.893 € 11.045.556 € 12.046.896 €<br />
Total Cumulative ROI -1.714.991 € 2.853.896 € 7.612.069 € 12.568.327 € 17.731.908 €<br />
NPV-Summary<br />
Total Annual Result -7.247.200 € 5.532.209 € 4.568.886 € 4.758.173 € 4.956.258 € 5.163.581 €<br />
NPV after n-th year -7.247.200 € -2.307.728 € 1.334.561 € 4.721.334 € 7.871.126 € 10.801.080 €<br />
Figure 18 – Combined business case<br />
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