The government of China has stressed on the significance of the development of RFID (Radio Frequency Identification) that could have considerable influence on supply chain management and result in increased efficiency of procurement operations

RFID is basically an identification technology that needs the data stored on its tags, which can then be distantly monitored by means of radio waves. RFID transponders can replace barcodes as they can be employed on both animate and inanimate objects and can eradicate differences in inventory records.

There is a vast scope of RFID use in China as its retail industry is booming that could use RFID tags to scale down the inefficiencies prevailing in supply chain management.

The Big Daddy of retail, Wal-Mart, has already made public that its suppliers have to place RFID tags on consignments and the Company has considerable operations in China. The most recent Five Year Plan of China puts forth several benefits to RFID tags, including providing cost savings and provision of accurate and relevant data.

As per a Research Analyst's view at RNCOS, who has recently researched a report on "RFID - Outlook China", China is aware of the role RFID tags can play in improving the competence of manufacturing and supply chain management and data collection. Considering the vast variety of potential applications and the power it has to cut the supply chain costs significantly, the RFID market is anticipated to record an exponential growth in China in the coming years.

Related Market Research Reports:
Global RFID Market Analysis till 2010
European RFID Industry Outlook (2007-2010)
World GPS Market Forecast to 2012