Strategy meets storytelling
Even when the technical solution is proven and the use case is clear, RFID labelling programmes do not implement themselves. They require approval, funding and internal alignment – often across packaging, operations, IT, compliance, and executive leadership. That means building a strong, credible business case.
This chapter is about more than spreadsheets. It is about framing a narrative that shows:
- why RFID labelling solves a real business problem;
- how it supports company strategy;
- what the return will look like; and
- and how risk is being managed.
In essence, a good business case is a story – one that balances financial rigour with vision, and shows that this is not a tech experiment, but a logical next step in operational maturity.
Whether you are pitching a small pilot or a global deployment, the structure of your case matters. Based on our experience, we’d like to offer you a framework for doing it right.
Start with the business objective
Every compelling business case begins with ‘the why’.
Do not open with ‘We want to implement RFID’.
Instead, open with:
- ‘We need to reduce cycle count time by 80%.’
- ‘We are losing €1.2M per year to shrinkage.’
- ‘We must comply with serialised traceability laws in three markets.’
- ‘Our DPP readiness plan is behind schedule.’
- ‘Customers are demanding digital proof of origin.’
This shifts the focus from technology to value. It positions RFID labelling as a solution to a business-critical challenge, not a speculative initiative.
Ask the right questions first:
- What operational, customer, or regulatory pain are we solving?
- Who owns this pain – and how do they currently address it?
- What is the cost of inaction?
- How does this support broader strategic goals?
Tie it to enterprise priorities
Your business case will be stronger if it links RFID labelling to:
- cost control and efficiency drives;
- customer experience and loyalty goals;
- ESG and sustainability reporting obligations;
- risk mitigation and regulatory compliance; or
- digital transformation and automation roadmaps.
Examples:
- ‘This supports our inventory accuracy KPIs under the 2025 Retail Excellence initiative.’
- ‘It aligns with our packaging digitalisation plan and meets Digital Product Passport requirements.’
- ‘It will cut stock loss by 30% in our highest-shrinkage segment, per QX audit findings.’
Start with the business priority – then present RFID labelling as the most effective way to achieve it.
Identify and quantify value
Once the problem is defined, the next step is to explain how RFID labelling creates value. This is the heart of your business case – and must be both tangible and defensible.
Avoid vague claims such as ‘better visibility’ or ‘modernisation’. Instead, show measurable improvements tied to financial impact, operational KPIs, or regulatory outcomes.
Tangible, quantifiable benefits
These vary by use case, but common examples include:
- Labour savings:
- 70–90% reduction in cycle counting time;
- fewer staff hours for returns handling; or
- automation of inbound or outbound scanning.
- Shrinkage reduction:
- 20–40% drop in lost or miscounted inventory;
- lower theft or diversion incidents; or
- improved exception tracking.
- Sales uplift:
- fewer out-of-stocks;
- faster replenishment cycles; or
- higher on-shelf availability of high-margin SKUs.
- Process accuracy and speed:
- near-elimination of mispicks or misroutes; or
- real-time visibility into stock location or status.
- Compliance risk mitigation:
- avoided fines or product holds due to missing traceability; or
- faster recall execution and documentation.
- Packaging consolidation:
- elimination of manual serial number application; or
- reduction in secondary labels or inserts.
- Sustainability gains:
- reduced waste from spoilage, returns, or overproduction; or
- support for EPR, recycling, and DPP disclosures.
All of these should be linked to numbers:
- current baseline (eg 2.3% shrinkage, 5,000 hours/year on cycle counts);
- estimated improvement (eg 50% reduction); or
- financial impact (eg. €150,000 annual saving).
Intangible or strategic benefits
Not every benefit shows up in a balance sheet. Still, they matter.
- Customer trust from tap-for-authenticity.
- Faster onboarding of regulatory regimes (eg DSCSA, DPP).
- Improved brand storytelling.
- Internal agility – fewer silos between systems.
If difficult to quantify, support with:
- industry benchmarks;
- references to peer programmes; and
- risk comparisons or scenario modelling.
Conclusion:
You are not selling technology – you are presenting returns. Build your case around value, not features.
Clarify the costs
A strong business case includes not just the benefits, but a clear, honest picture of total cost. That includes not only tags and printers – but all the elements required to make the system work reliably and at scale.
Total cost of ownership (TCO) categories
- RFID tags / RFID labels:
- unit cost × volume; and
- varies by inlay type, material, encoding, and quantity.
- Hardware:
- readers (handheld, portal, tunnel, mobile);
- print-and-encode machines; and
- antennas, power, mounts.
- Software and licensing:
- middleware, encoding tools, dashboard platforms;
- APIs to ERP/WMS systems; and
- subscription or support costs.
- Integration and configuration:
- IT resources for setup;
- custom interfaces, testing, data mapping; and
- middleware development or licensing.
- Training and change management:
- staff onboarding and SOP updates;
- printed guides, videos, support materials; and
- super-user or train-the-trainer programmes.
- Quality assurance:
- test and reject equipment;
- sample validation; and
- encoding verification tools.
- Maintenance and support:
- spare parts;
- SLA agreements; and
- reader calibration or updates.
- Pilot and development costs:
- prototyping, test materials, temporary labour; and
- consultancy or technical support
Recurring versus one-off costs
Distinguish clearly between CAPEX and OPEX – many firms prefer solutions that shift cost to operating budgets, or that scale with usage.
Conclusion:
Transparency builds credibility. If costs are laid out in full, decision-makers are more likely to trust your ROI numbers.
Frame the ROI and payback period
Once you have mapped value and cost, the next step is to frame the return on investment (ROI). This helps stakeholders understand whether RFID labelling is a financial priority – and how long it will take to pay for itself.
A credible ROI projection:
- uses realistic assumptions;
- separates direct and indirect returns;
- includes best- and worst-case scenarios; and
- shows when value begins – not just when it maximises.
Core ROI formula
A basic annual ROI can be expressed as:
ROI (%) = ((Annual Benefit – Annual Cost) / Annual Cost) × 100
But in practice, you should also calculate:
- cumulative ROI over 3–5 years;
- payback period (time until cumulative benefit = cumulative cost); and
- break-even point based on deployment timeline.
Typical payback periods
Shorter paybacks are usually achieved by:
- starting with a focused use case;
- deploying at a single site or high-value SKU; or
- leveraging existing infrastructure.
Use conservative assumptions
Build credibility by:
- underestimating performance gains (eg 30% reduction in returns, not 70%);
- using real data where possible (labour rates, volumes, historical shrinkage); and
- excluding soft value unless well supported.
Then present alternative views:
- Base case – likely outcome with current resources.
- Best case – if adoption and performance exceed expectations.
- Worst case – lower benefit, higher training, or integration time.
Use clear visuals to present comparisons, break-even points, and timelines.
Conclusion:
Your job is not to impress with the highest ROI – it is to convince with the most believable path to value.
Address risk and mitigation
Any strategic investment comes with risk. RFID labelling is no exception – and decision-makers will expect you to identify, acknowledge, and plan for the most likely points of failure.
The goal is not to pretend there is no risk – but to show that it is:
- understood;
- actively managed; and
- bounded by smart design and staged rollout.
Common technical risks
Common organisational risks
Strategic and financial risks
Include a short risk register in your business case or presentation – and show that each item has an owner and a response plan.
Conclusion:
When risk is acknowledged and contained, your proposal gains credibility – and makes it easier for leadership to say ‘yes’.
Align with internal goals and budgets
RFID labelling is rarely a standalone initiative. To gain traction, it should be positioned as a solution that advances existing priorities – rather than something new that competes for resources.
The strongest business cases show clear alignment with:
- corporate strategies;
- departmental KPIs;
- ongoing transformation programmes; or
- compliance or sustainability targets.
Map to strategic initiatives
Examples of strategic alignment:
- ‘This supports our 2025 goal of 98% inventory accuracy.’
- ‘It enables GS1 traceability, which is a requirement in our Asia export market.’
- ‘It advances our ESG reporting framework by enabling real-time product metadata.’
- ‘It complements our ERP modernisation by automating inbound scanning.’
If the company is already investing in digital transformation, sustainability reporting, packaging redesign, or regulatory readiness (eg DPP, FMD, DSCSA) – RFID labelling becomes a natural extension, not a distraction.
Identify budget owners and champions
Depending on the use case, the initiative could sit under:
Where possible, structure funding across departments – showing how each one gains.
Shared ownership signals shared value.
Timing matters
Connect your proposal to:
- upcoming budget planning cycles;
- compliance deadlines;
- new product or packaging launches; or
- digital rollouts or ERP upgrades.
RFID labelling succeeds when it rides the wave of something that’s already happening.
Conclusion:
You are not asking for a new budget line – you are helping existing budget owners deliver better outcomes.
Map the stakeholder landscape
No RFID UHF or NFC initiative succeeds without people. From operators and IT leads to executives and regulators, your business case must anticipate the needs, concerns, and incentives of every stakeholder involved.
A smart stakeholder map:
- identifies key groups;
- clarifies what matters to them;
- adapts messaging accordingly; and
- helps you build champions early.
Common stakeholder groups and their focus
Tailor your messaging:
- For finance: ‘Payback occurs in 14 months, supported by reduction in shrinkage and labour.’
- For marketing: ‘Enables tap-based brand storytelling and traceable sourcing.’
- For operations: ‘Reduces manual scanning and improves stock accuracy by 35%.’
Identify champions and blockers
- Engage supporters early – especially those with influence and credibility.
- Address likely sceptics by involving them in pilot design.
- Make usage data and feedback loops visible.
Conclusion:
The business case is not a document – it is a conversation across the organisation. Win the people, and the rest follows.
Provide proof – or a path to it
Decision-makers are more likely to approve a smart labelling project if they see evidence that it works. That evidence can come from internal pilots, industry benchmarks, or analogous deployments. If such data is not yet available, your business case must include a low-risk path to proving it.
Use pilot data, if available
If your organisation has run a trial, share:
- read rates and encoding accuracy;
- time savings or staff feedback;
- shrinkage or error reduction metrics;
- scan performance under different packaging types or environments; and
- qualitative insights from operators or consumers.
Graphs, heatmaps, and side-by-side workflow comparisons help make the case visual and relatable.
Borrow credibility from the market
If your company is new to RFID, reference:
- competitor case studies;
- supplier references in your industry;
- published GS1 or analyst ROI benchmarks; and
- relevant regulatory guidance.
You can find a number of RFID use cases by industry here.
These analogues reduce perceived risk and give internal stakeholders confidence in the concept.
No proof yet? Propose a pilot
If you are starting from zero, design a pilot that is:
- short (4–8 weeks);
- focused (single SKU or location);
- measurable (clear before/after metrics); or
- inclusive (engages key stakeholder groups).
Your proposal then becomes:
- ‘We’re not asking for a full rollout – we’re asking for €X to validate performance over 60 days.’
Include clear pilot goals, team roles, evaluation criteria, and a decision point for next steps.
Conclusion:
If you cannot provide proof now, show how you will get it – and why the journey is safe, strategic, and scalable.
Build confidence, not hype
A strong business case is not about flash or novelty. It is about showing:
- that a real problem exists;
- that RFID labelling is the best tool to solve it;
- that the return will be worth the risk; and
- that your organisation can deliver.
Avoid inflated projections or techno-optimism. Focus instead on:
- clear alignment with company priorities;
- practical, proven use cases;
- cost transparency and credible ROI timelines; and
- phased deployment and risk control.
The goal is not to make RFID UHF or NFC exciting – it is to make the decision to invest feel obvious.
Checklist: Is your case ready?
✅ Does it solve a real business problem?
✅ Have you quantified both value and cost?
✅ Is ROI realistic, not theoretical?
✅ Have you addressed stakeholder needs and risks?
✅ Is there evidence – or a plan to get it?
✅ Does it align with current strategies and budgets?
If so, your proposal is not just compelling – it is ready for approval.
Conclusion and next steps
The journey to RFID labelling is both technical and strategic. It touches materials and metadata, packaging lines and customer touchpoints, regulation and ROI. And as our series of article, hopefully, has shown, it is no longer experimental – it is proven, accessible, and necessary.
What began as a way to track pallets in warehouses has evolved into a platform that:
- transforms supply chain visibility;
- enhances customer trust and interaction;
- automates compliance and traceability;
- supports circular economy goals; and
- unlocks real-time intelligence across operations.
RFID labels are not about chasing trends. They are about designing a more transparent, responsive, and efficient business – one tag at a time.
Where to begin
Whether you are at the exploration stage or preparing for scale, your next steps are clear:
Step 1. Choose a starting use case
Focus on one high-impact, well-understood challenge – inventory accuracy, shrinkage, authentication, or traceability.
Step 2. Select the right partner
Work with a label converter and integrator who understands your packaging, processes and goals – not just the technology.
We’ve written an in-depth piece on how to select your RFID partner here:
Step 3. Run a pilot with clear metrics
Design a test that is time-bound, measurable, and useful – and that allows you to gather evidence, refine assumptions, and build stakeholder confidence.
Step 4. Plan for scale from the start
Even if you begin small, choose data standards, encoding rules, and processes that can grow with you – and ensure interoperability across regions and partners.
Step 5. Prepare your team
Train early, communicate clearly, and involve the right people at every level – from operators to executives.
Think long-term, act now
The packaging you produce today will carry your products into a world that is:
- more regulated;
- more data-driven;
- more customer-centred; and
- more environmentally accountable.
You do not need to overhaul everything at once. But you do need to act with intent – and to design your labelling systems for what your customers, regulators, and teams will need two, five or ten years from now.
RFID is an investment in future readiness.
And now, you know how to begin.
