a) If you were SAVI, how would you position tracking technology to companies like Quad -- as a cost avoidance or as a value-adding service? Why?
b) The cost of active tags is about ten to one-hundred times more expensive than the simple passive tag. Should Quad consider investing in active tag technology? How could these tags be used to offer new business opportunities? How could you determine the value of using active tags?
Quad is a company which leases and services the plastic containers which are used from industries to grocers to transport the products. They are facing some difficulties with them supply chain and following processes for each container. SAVI proposes some new technologies to facilitate this tracking and the inventory management. So in my opinion, if I were SAVI, I would like to position the tracking technology to companies like Quad as a value-adding. The SAVI’s technologies will come for the other companies more like an advantage to improve their efficiency. Such technologies offer the possibilities to manage better the visibility of physical goods, to increase the supply chain efficiency and to facilitate the inventory’s management. The RFID technology adds value not only to the product but also to the QUAD Company. By using such service, they will increase the productivity and improve their products but also reduce the spendof-time. It is really a value—adding service. SAVI offers different kind of RFID tags: active or passive. The active tags are an evolution of the passive tags. They have the ability to transmit their location and other information like the time spending at the same place. Moreover they can be monitored by readers not far from them. So with all these capacities, it could be a great choice for QUAD to invest on this evolution. It will provide them more flexibility, give them the capacity to better organize them inventory and to improve the inventory