RFID technology is fast adopted by manufacturers and retailers owing to its benefits and the easiness - imparted by the technology to the functioning of businesses.

RFID technology in retail consumer goods segment reached in 2005 US$161 Million with hardware share of 41%. RFID is projected to follow a growth rate (CAGR) of almost 57% in subsequent four years with profits greater than US$1.5 Billion by 2010.

Pantaloons, Wal-Mart, and other retailers meet demand by ensuring availability of goods when and where they are needed. RFID technology integrated with supply chain process lessens manpower required to supervise the flow of inventory. It provides absolute supply chain transparency not including exorbitant manpower expenditure and error rates, which a comparable manual arrangement would necessitate.

On April 30, 2004, foremost batch of consumer products with RFID (radio frequency identification) tags were dispatched to Wal-Mart Stores. This was tracked soon by authorization by Department of Defense, Target, and Albertsons as per news published by Forbes . From 2004 to 2006, Wal-mart spent US$800,000 on RFID pilots on standard consumer products and number of stores using RFID pilot tags increased from 100 to 1000 in 2007.

RFID is used with bar code system or for individual inventory tracking purpose. It automatically updates information regarding inventory movement in system. All RFID tags bear some vital information on it like model number, place of assemblage, serial number, color, or other data.

RFID tracking methods are increasingly used in warehousing and cross-docking. To establish an efficient supply chain with RFID integration, increased collaboration of retailers and suppliers is needed. With RFID, goods are tagged during production and everybody from supplier to end consumer are benefited by augmented information available due to RFID implementation. 

As per the research analyst at RNCOS: “RFID industry is booming worldwide with ever increasing number of retailers and producers appreciating the benefits harnessed by RFID pilot tags. RFID technology, in addition, is akin to security guard as it keeps track of movement of goods from dock to truck to store and double check the numbers by conducting automatic inventory check with manifest. Flow of goods become streamlined and systematic with presence of ample safety stock reducing stock outs and reducing overstocking, besides, the financial becomes transparent and discrepancies are removed.”

Related Market Research Reports:
Global RFID Market Analysis till 2010
European RFID Industry Outlook (2007-2010)
RFID Outlook China