Economic assessment of RFID coupled with open source technologies for wood traceability in Calabria

Abstract

The aim of this work was to assess the economic sustainability of the implementation of a wood traceability system in Calabria based on RFID and open source technologies. We identified a break-even point in its implementation under different scenarios in order to highlight the economic sustainability limits, expressed in terms of m3 or tons of processed product. The results showed that the use of RFID technology along the supply chain could lead to an effective operational simplification and to a more efficient use of resources. Based on the average market prices for timber (80-120 € / m3), the implementation of RFID technology led to an increase in timber price by 8% under the worst scenarios. This suggests that the use of open source technologies for wood traceability is already feasible and economically sustainable, as 40% of private companies stated their willingness to pay a premium price (on average 3.25% higher) for purchasing certified local wood products in Calabria. Moreover, we expect a further reduction of tags and hardware costs in the next future, up to half the costs estimated in this work, thus making the application of such technology to timber traceability even more affordable.

Keywords

• Precision Forestry
• Traceability
• Tag
• RFID
• Open Source
• Economic Sustainability