What is RFID? Is RFID Implementation Expensive? Cost, Applications & ROI Analysis for Vietnamese Businesses

“What is RFID?”, “Is RFID expensive to implement?”, “Should businesses invest in RFID?” — these are the questions most companies ask, from small warehouses and mid-sized factories to retail chains and large enterprises, when they start learning about this technology.

In reality, RFID is not just a technology. It is increasingly becoming a data foundation for modern warehouse management, manufacturing, and supply chain operations.

In Vietnam, Beetech is a full-service RFID solution provider for all industries and sectors, including logistics, warehousing, manufacturing, retail, asset management, healthcare, education, libraries, and industrial zones — delivering end-to-end solutions from hardware and software to system integration and real-world operations.

This article will help you:

• Clearly understand what RFID is and how it works

• Understand the difference between RFID and Barcode

• Learn about common RFID applications in warehouses, manufacturing, and retail

• And most importantly: analyze the cost and ROI of investing in RFID for your business

What is RFID?

RFID (Radio Frequency Identification) is a wireless identification technology using radio waves.

An RFID system allows you to:

• Attach RFID tags to products, pallets, assets, or semi-finished goods

• Use RFID readers to capture data without contact and without line-of-sight

• Read multiple tags simultaneously, even when goods are moving

A complete RFID system includes:

• RFID Tags

• RFID Readers & Antennas

• RFID Management Software

• Integration with ERP, WMS, MES, or existing business systems

Currently, Beetech provides end-to-end RFID solutions, from consulting and system design to hardware supply, software development, deployment, and maintenance.

How is RFID different from Barcode?

Barcode is a very popular, low-cost, and easy-to-deploy technology. However, as businesses grow, barcode systems begin to show their limitations.

Comparison between RFID and Barcode

In practice, many projects implemented by Beetech combine both Barcode and RFID to optimize cost and ensure a smooth digital transformation roadmap.

RFID Applications in Businesses

1. RFID in Warehousing & Logistics

RFID helps to:

• Perform inventory counting:

  • From days → to hours

• Track:

  • Pallets

  • Cartons

  • Warehouse locations

• Reduce:

  • Inventory inaccuracies

  • Lost goods

  • Wrong inbound/outbound operations

Practical benefits:

• Inventory accuracy > 98%

• Reduce inventory counting time by 70–90%

• Increase inbound/outbound processing speed

This is also the most common RFID project group that Beetech is deploying for distribution centers, central warehouses, e-commerce warehouses, and logistics companies.

2. RFID in Manufacturing

RFID is used to:

• Track:

  • Work-in-Progress (WIP)

  • Components

  • Each production stage

• Know exactly:

  • Where each product is

  • Which process is bottlenecked

  • Where materials are missing

Benefits:

• Reduce WIP inventory by 20–30%

• Synchronize:

  • Planning

  • Warehouse

  • Production

• Improve factory operational efficiency (OEE)

In factories, Beetech typically deploys RFID as a real-time data layer between warehouse – production – ERP systems.

3. RFID in Retail Chains

RFID helps to:

• Manage inventory at:

  • Central warehouses

  • Stores

• Reduce:

  • Shrinkage

  • Internal theft

• Optimize:

  • Stock transfers between stores

  • Out-of-stock situations

Benefits:

• Inventory accuracy of 95–98%

• Increase sales by always having the right products available

• Reduce shrinkage by 30–50%

RFID is currently being deployed by Beetech for many retail chains, store systems, and distribution centers in Vietnam.

Should Small Businesses Use RFID?

YES – if:

• The number of SKUs is growing rapidly

• Inventory counting takes too much time

• You start experiencing:

  • Inaccuracies

  • Losses

  • Lack of control

In reality, many of Beetech’s customers started with small RFID projects and then gradually expanded across the entire system.

What Costs Are Involved in RFID Implementation?

An RFID project usually includes 4 main cost components:

1. RFID Tag Cost

• From a few thousand to several tens of thousands VND per tag

• Depends on:

  • Usage environment

  • Whether it is attached to products, pallets, or assets

→ This is a variable cost based on quantity.

2. RFID Reader & Hardware Cost

• Fixed readers

• Handheld readers

• Antennas

→ This is the initial investment cost.

3. Software & Integration Cost

• RFID management software

• Integration with ERP, WMS, MES, accounting or warehouse systems

→ For medium and large enterprises, this is the most critical part.

4. Deployment, Training & Operation Cost

• Process survey

• Installation & configuration

• Staff training

• Maintenance & support

In real projects, Beetech always consults and designs the system to best match the business scale and budget, avoiding over-investment or wrong investment.

Total RFID Investment by Business Scale (Reference)

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⚠️ There is no fixed price for RFID. The cost depends on the business problem you want to solve.

Why Many Businesses Think RFID Is Expensive — But It’s Not

Because they only look at:

❌ Hardware investment cost

And ignore:

• How much money is lost every year due to inventory inaccuracy

• How much is lost due to shrinkage

• How much is spent on inventory checking and reconciliation labor

• How much is lost due to slow and inaccurate decision-making

For example:

• 3% inventory inaccuracy in a 100-billion-VND warehouse = 3 billion VND discrepancy

• 1% shrinkage = 1 billion VND lost per year

👉 Sometimes, not implementing RFID is actually the more expensive decision.

Does RFID Pay Back? (ROI)

• Small businesses: payback usually in 12–24 months

• Medium businesses: many projects in 9–18 months

• Large enterprises: many projects in 6–18 months

In practice, Beetech observes that most RFID projects have very clear and measurable ROI in real money.

RFID Is Not Just a Technology — It Is a Management Platform

• For small businesses:

  • Less effort

  • Fewer errors

  • Less loss

• For large enterprises:

  • System standardization

  • Real-time data-driven management

  • Scalable growth without losing control

When Should a Business Implement RFID?

Small & Medium Businesses:

When:

• SKUs grow rapidly

• Inventory counting becomes exhausting

• Inaccuracies and losses start to appear

Large Enterprises:

When:

• There are multiple warehouses, factories, branches

• You want standardized and centralized management

• You want sustainable and scalable growth

Beetech – A Full-Service RFID Solution Provider for All Industries

Beetech provides:

RFID solutions for:

• Logistics & warehousing

• Manufacturing

• Retail chains

• Asset management

• Healthcare, education, libraries, industrial zones…

End-to-end services:

• Genuine RFID hardware

• Custom RFID management software

• ERP / WMS / MES integration

• Survey – deployment – training – warranty – maintenance

Beetech does not just sell devices, but delivers a complete RFID solution from strategic consulting to real-world operation.

Conclusion: Is RFID Expensive?

RFID is not cheap if you only look at hardware costs.
But RFID is very cheap compared to:

• Money lost due to errors

• Money lost due to shrinkage

• Money lost due to inefficient operations

❗ The real question is not: “Is RFID expensive?”
The real question is: How much money is your current system costing you every year?

📞 Beetech – Full-Service RFID Consulting & Implementation in Vietnam

👉 Contact Beetech today for a free survey and consultation to find the most suitable RFID solution for your business.

📧 Email: info@beetech.com.vn
🌐 Website: https://beetech.com.vn