Recently I was an expert moderator for a 400 level RFID class at a university and a student posted an interesting question:

"How do you communicate to upper management the benefits of using RFID?" 

This is a very good question.  I typically break down the benefits into three categories:

1. Intangibles - benefits of implementing a RFID system where no dollar savings can be calculated (Better costing, improved charge audit capabilities, improved job satisfaction...)

2. Soft Savings - you can calculate a dollar savings but it will not be used as part of the ROI calculation (i.e. improvement in nurses productivity by improving out of stocks so the nurse doesn't need to search for supplies - 5% improvement * 40 nurses = $210,000/yr in productivity.  This is a soft savings because the number of nurses does not decrease.)

3. Hard savings - you can calculate a savings and it will reduce expenses or increase revenue (reduction in inventory shrinkage, reduction in headcount....)

It is important to note that for some projects the soft savings could be included with the hard savings to calculate a ROI for the project.  The other part of the ROI calculation is the cost piece...RFID Equipment, RFID Middleware, RFID Tags, Consulting & Design Services.