The benefits of digital asset management (DAM), including RFID, are a hot topic these days. RFID applications are available for any sort of business. But owners and managers of organizations in the service sectors, from finance and law to healthcare and education, may think RFID is just an inventory tool for the retail and logistics sectors.
If you think your enterprise couldn’t benefit from RFID, think again.
- Asset Tracking – Ever notice how there are never enough chairs in the conference room? Furniture, laptops, and other work tools have a way of wandering from their assigned locations. RFID tags keep tabs on the location of these peripatetic items, as well as providing information on their age and condition. Office and facility managers can easily identify aging furnishings that need repairs or replacement, and pinpoint the location of every physical asset. Plus when inventory time comes, the RFID system can deliver a document listing the assigned value of each item currently in the facility, making financial reporting quicker and simpler. What is does it cost your business to update capital inventory records by hand?
- Personnel Tracking – In busy public settings like hospitals or schools, knowing the location of key personnel can save time, or even save a life. RFID-enabled personnel badges keep track of people’s movements and current whereabouts so no time is wasted when someone is urgently needed. RFID personnel badges work with an institution’s security system to manage access to restricted areas and maintain safety. And in emergency situations, an RFID system can tell first responders who is inside and where they are. What is the dollar value of RFID-managed security and safety?
- Document Tracking – We always advocate converting paper documents to digital documents via a well-planned imaging program; imaged documents are secure, shareable with teams, and save the real estate costs of large file rooms. But in many offices there are documents that need to be retained as paper even if they have been imaged. Paper files are easy to lose or misplace (one of the advantages of imaging), but with the addition of small, inconspicuous RFID tags, the location of a file can be tracked throughout an office. Doorway RFID readers monitor the movement of files from one room to another, and files can be located with a quick look at the tracking record. PricewaterhouseCoopers estimates an average of 25 extra hours to recreate a lost document; how much would that cost your business?
Keep in mind that RFID, unlike bar codes, doesn’t require direct sight lines to record and track business assets carrying RFID tags. Once items or personnel are assigned their unique RFID tag, doorway readers track their movements automatically as they pass from one room to another. And inventory updates can be as simple as walking into a room and pressing a button on an RFID reader. You’ll instantly collect data on all the capital assets the room contains; no need to look through cabinets and underneath furniture to read bar code IDs. RFID is a timesaver, and like its other benefits, that translates into money.
RFID systems come in many shapes and sizes, and can be scaled up or down to suit your organization’s needs. When you start adding up the costs of lost documents, lost equipment, and lost time, it’s clear that you shouldn’t miss out on the benefits of RFID.
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The IRS is acting like Oprah, and small businesses across the U.S. are benefiting. Thanks to Section 179, the IRS is handing out a $1,000,000 deduction to every small business that puts qualifying equipment and/or software into use before the end of the year. Rather than depreciating equipment over the course of several years, Section 179 allows businesses to deduct the full price of equipment in Year 1, up to $1,000,000. That’s an enormous tax benefit.
And it gets better: Even if you finance the equipment rather than paying for it up front, you still qualify for the deduction. Leases as well as purchases are included in this rule. You don’t have to hand over a pile of cash in order to reap the Sec. 179 benefit.
Almost any tangible business-related product qualifies for the deduction, including:
- Equipment purchased for business use
- Computers and off-the-shelf software
- Data hardware (essential for imaged-document storage and access)
- Office furnishings and fixtures, including high density mobile storage and lockers
- Office equipment
- Certain business vehicles, including fork lifts and 9-passenger vans
- Property attached to your building that is not part of the building structure (casework and industrial shelving, for example)
- Tangible personal property used in the business, or equipment with a partial business use
- Some improvements to existing business-only buildings, including security systems, HVAC, and roofing
There’s one small but essential thing to remember: The new equipment must be placed into service by December 31.
With only a few weeks left in the year, that deadline may seem like an insurmountable scheduling problem. Luckily, many business-equipment vendors offer quick-ship programs for their clients who want to take advantage of the Sec. 179 deduction. If you’re planning an equipment acquisition in the first quarter of next year, why not buy it now, put it into use before the end of this year, and get the money the IRS put under your seat?
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It happens every year around this time – the season for end-of-year tax deductions. The Section 179 tax rule gives businesses an opportunity to write off as much as $500,000 in new and used equipment costs. Equipment or software purchased and put into service by December 31st is deducted from your business’s gross income – it’s as simple as that. And depreciation boosts the total tax reduction even more.
The tax experts at Section179.org provide in-depth information on this valuable tax strategy, and the calculator from Crest Capital shows the savings.
The key phrase in Section 179 is “put into service.” With only a month left in 2016, many kinds of business equipment simply can’t be delivered and put into service before the end of the year. The good news: There’s a wide variety of high density storage, RFID systems, and modular furnishings on a quick-order program. Talk to your tax advisor, then talk to your local storage professional to find out which new and efficient storage systems can help your business qualify for this attractive deduction. Don’t waste a minute!
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From Southern California to Washington, D.C., new warehouses are springing up overnight to meet market demands. There’s one time-consuming phase of warehouse build-out, however, that shouldn’t be bypassed regardless of how much of a hurry you’re in.
As reported by Site Selection Group, the demand for new warehousing is spurred by e-commerce’s continued exponential growth, where volume and speed-to-market are critical success factors. Warehouses can be constructed relatively quickly – an average of 81 days in the U.S. – but the permitting process for racking systems can potentially slow your build-out to a crawl, extending your timeline and costs.
Of course, the short-term costs of a longer timeline are far outweighed by the long-term costs of injuries and product losses (not to mention fines) in the event of racking system failures. It’s important to work with an experienced storage consultant who will design and install safe, reliable storage racks. Their expertise could help you speed up permit sign-offs from the building department and the fire department.
Building a strictly legal environment for your employees and your products will ultimately save you big-time in terms of safety and liability. Read more here about permitting, and see a video showing what happens when unpermitted racking fails in a seismic event.
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When the new mega-size container ship “Benjamin Franklin” docked in the Ports of Los Angeles in late 2015, it marked the beginning of a new shipping era. The ship can carry 18,000 containers. Placed end to end, the containers would reach from Baltimore to Philadelphia, a distance of nearly 100 miles. That’s a lot of containers!
And that number of containers has logistics experts worried. Their concern: The land-side infrastructure of ports on the US west coast cannot handle such a large influx of containers at one time. Trucks will not be able to get in and out of the ports quickly enough to move all those containers off the docks and make room for the next ship waiting its turn to unload, says Jared Vineyard, blogging for Universal Cargo.
This congestion starts a domino effect that is felt all the way down the supply chain – transportation delays increase, warehouses aren’t restocked on time, and retailers will feel the squeeze. Despite the increased shipping capacity, American shoppers may actually experience shortages of their favorite consumer goods. To keep retail shelves stocked, wholesalers and warehouse managers should be looking at ways to increase their own storage capacity ahead of the bottleneck that could be building at the seaports.
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Drones, 3D printing – the past few years have seen innovations that could prove highly disruptive to the traditional supply chain. Lora Cecere, CEO of Supply Chain Insights, serves up her predictions for the 2030 supply chain in this post. The highlights include:
- Autonomous Supply Chain. Sensors, robotics, and GPS combined into an adaptive, cognitive system that automates manufacturing and warehouse management, and reduces heavy machinery downtime through sensors and connectivity.
- Safe and Secure Supply Chain. An automated chain of custody will reduce spoilage, secure hazardous shipments, and guard against fakery in everything from purses to pharmaceuticals.
- 3D Printing. Everything from spare parts to medical devices will be individualized and printed as needed.
- Learning Systems and Network of Networks. Manufacturers, shippers, and consumers will know where any customized order is in the process, at any time, in any place, thanks to supply chain systems that learn cognitively, and a network that talks to all other networks.
What do these changes mean for your business? Is your business ready for this brave new world? And where do storage systems fit into the big picture?
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