Why You Can't Afford RFID

I've been involved in RFID implementation in commercial laundries for over a decade. My work at SPL helped bring them to the point where they could automatically generate customer orders based on usage, and create their "Linen Hubs" — the 'just walk out' linen store for short-term stays.

Most commercial laundry operators are aware of the hardware and software costs involved, and are okay with the investment when it actually delivers on the promises. But I've seen enough RFID readers in laundries collecting dust to recognise the pattern:

A laundry operator invests in hardware and software, and starts chipping the linen. They focus on it for a quarter or two, but the system never progresses to the point where anyone in the business actually trusts the data. And if the laundry doesn't trust the data, how can you expect your customers to?

So the 'RFID Project' is never officially decommissioned. The portals stay installed, the linen is still purchased with chips, 'RFID Capabilities' are still added on tenders. But the system never actually delivers any value to the laundry.

The tunnel washer test

Imagine you heard about the efficiency gains of tunnel washers, so you decide to invest in one. You see the cost of the hardware and install, do the ROI and say "great, let's do it!"

You then rip out all your washer extractors and install a CBW. On its own. No conveyor systems, no batch transfer dryers, no changes to the rest of the operational flow of the laundry. I'm sure you can imagine this would be an unmitigated disaster.

RFID readers and software will provide absolutely no value if they're not coupled with absolute commitment — from every level of the business — to ensuring the data is accurate.

So what does the operational change look like?

RFID rollouts fail because the RFID data is treated as optional.

After a successful rollout, if the dispatch readers go down, the laundry isn't sending anything out the door. An RFID reader going down is treated with the same operational urgency as an ironer or washer breaking down — it stops production.

This may sound ludicrous to some, but it's the natural fallout of treating RFID data as "not optional". Only when a laundry has that level of commitment to data integrity can they sit down with a customer with utmost confidence and show them the data.

Only then can they:

• Automate ordering according to demand
• Minimise cold stock at customer sites
• Reduce linen spend

Lack of data integrity is the reason laundries aren't using their RFID systems — and you can't have data integrity without a commitment to ensuring all linen sent to a customer is chipped, registered, and scanned correctly. Regular audits must also be conducted to ensure soil readers are operational.

Getting there means implementing processes on the factory floor that are followed with the utmost diligence.

So why can't you afford RFID?

An investment without ROI isn't something any business can afford. It's a waste of not only money, but time.

You'd laugh at an operator installing a tunnel washer without making any operational changes on the floor — but so many do the same with RFID rollouts: throw in some readers and expect it to start generating savings on its own.

If you can't afford the time to nurse an operational change project over 6–12 months, you can't afford RFID.