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CIOs Interest Results in RFID Growth|
- By CXOtoday Staff, Jul 05, 2007 1348 hrs IST
- Tags : CIOs Interest Results in RFID Growth
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Holding up the success of the rising number of Radio Frequency Identification (RFID) projects, end users are keener on using RFID in supply chains. They recognize that better visibility will aid creation of an efficiently managed supply chain that would enable them to reduce their overall operational cost.
According to Frost & Sullivan, the Asia Pacific RFID supply chain market earned revenues of USD 170.3 million in 2006, and it estimates this to reach to USD 646.3 million by 2013.
"Presently, the key driver for RFID adoption in the supply chain, for the Asia Pacific market, is compliance with mandates set by retail giants located in the United States or Europe," states Richard Sebastian, research associate at Frost & Sullivan. According to him, once end users begin to realize that RFID's value extends beyond mere mandate compliance, the technology is expected to experience large-scale adoption.
With an increase in the number of directives in Asia Pacific, the supply chain will indirectly adopt RFID. Other organizations are expected to announce new mandates once they deploy RFID within their own supply chains.
Furthermore, the ratification of standards and frequency allocation for RFID will make it more feasible for end-user adoption. As costs gradually come down, more and more end users will be able to afford RFID in their supply chain. This would ensure that the technology thrives in the Asia Pacific supply chain market for several coming years.
"To build on this increasing interest in RFID, all parties involved need to better educate end users about its actual benefits, without over-hyping it," said Sebastian. According to him, although end users more or less understand RFID technology on a general level, they are unable to comprehend how RFID can make their supply chain more efficient, and hence, earn them more Return on Investment (ROI).
However, to accommodate the technology, end users need to conduct feasibility studies and cleverly restructure their entire business processes. Without proper planning, they won't be able to reap the full benefits that RFID has to offer to their supply chain.
Related Links:
Forum to Discuss RFID Applications
Balluff's RFID Systems get Industrial Connectivity
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