The costs associated to implementing such a solution is expensive and typically doesn’t pay for itself in reduced inventory shrink for nearly three to four years in most industries. What was striking about this industry in healthcare in particular was the amazing inventory shrink rate of 20% annually. This made the system return on investment within two years of operations we thought in the outset.
Our solution allowed for each individual laundry item to be uniquely tracked across several sites and location known during transit. It allowed for confirmation of delivery, just in time billing for inventory needed and had far superior metrics and analytics. The solution virtually eliminated human error from counting and managing inventory, was able to show current inventory locations and was able to reduce shrink rates under 7%.
During the initial testing and feasibility phase of this project our team discovered quickly that the costs in terms of labour savings to implement such a solution made this solution economically viable within the first 6 months of operations. The labour cost savings alone in reduced counting times for loading and unloading laundry carts cost less than the entire system did to implement within 6 months. The decreased shrink rates, improvement of inventory knowledge and just-in-time billing abilities made this solution an easy choice.
The Nu-Worx teams’ knowledge in RFID inventory management could easily see such a solution be implemented in a retail environment to track all products within a store, a warehouse to track and locate all inventory or anywhere the need for highly accurate, low cost inventory management is needed. RFID is the future for inventory management and the Nu-Worx team easily leads the way.