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Solving Latin America's Chicken-and-Egg Dilemma

In order to adopt RFID, companies in the region must spend money they don't have. Yet, one of the surest ways to get funds to pay for such an investment is to deploy RFID.
By Luis Angel González Villa
Sep 04, 2016

In recent years, we have seen significant growth in the adoption of radio frequency identification technology. There is a widespread expectation that RFID deployments will generate a rapid return on investment, an incredible amount of savings and collateral benefits that include automation and business-process efficiency.

Nonetheless, the precarious financial situation that exists throughout Latin America has posed a major obstacle to RFID adoption. On the one hand, Latin American companies know that the use of RFID could generate substantial savings that could pay for the RFID project within less than a year and start generating profits. On the other hand, those companies typically lack the financial resources to invest in even the down payment for such a project.

One of the two sides (client and supplier) must allocate the financial responsibility for projects. I, like other serious RFID technology integrators and vendors, know that technology is a real thing and that the results are solid when professional work is involved from the basic and necessary steps prior to an implementation, such as site survey, solution design, bill of materials and project plan.

We are eager to take on new deployments and have the opportunity to apply our knowledge and experience in projects, but we also have expenses that prevent us from funding projects. In the same vein, companies want to incorporate RFID technology into their operations and become more efficient in their processes. However, the funds they allocate to traditional and conservative budgets are not enough to hire the experts.

There is no magic formula for stretching the funds and making it possible to invest in technology. Yet, once a company finds a way to invest in RFID, that firm will generate more than enough savings to pay for such a deployment. Solving this chicken-and-egg riddle is a big challenge, but a solution must be found.

Luis Angel Gonzalez Villa is an RFID specialist in Mexico and a founding partner of GC Technologies, a consulting technology company specializing in RFID implementations. He has been an RFID evangelist in Latin America for more than 10 years.

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