Inventory management is the support system for every enterprise. It defines the growth, survival, and success of the business. Poor inventory management can lead to reduced sales which in turn can result in low profitability or even loss to a firm. Major challenges faced by organizations while managing inventory include product misplacement, counterfeit products, and insufficient stock. RFID is the top available technology for efficient management of inventory. RFID technology enables the reading of products in real-time and helps to eliminate all the challenges faced while managing inventory.
The products and items are equipped with RFID tags which stores data as well as information about the stock. Each product and item stored in the stock are monitored in real time and data regarding the same is displayed on the control center computer. The real time monitoring happens as a result of the transmitted signal to RFID tags from the RFID reader. Once the RFID tag detects the transmitted signal, data is sent to the RFID reader. The RFID tags are then scanned by the RFID reader and the control computer center then displays the information and status from each tag.
The RFID based inventory management system consists of hardware and software. The hardware is typically the RFID reader, the RFID tags, and a host computer. There are two types of RFID tags: active RFID tags and passive RFID tags. The choice of the tag depends upon the requirement. The purpose of the software in the system is to display tracking data collected by RFID tags and readers in a meaningful way.
The RFID digital inventory management system has a number of advantages over barcode technology. First and foremost, with RFID technology in use, there is no need for an operator, unlike barcode where the scanning has to be done by a person with a scanner. Secondly, RFID tags cannot be counterfeited easily, hence providing a degree of security and product authentication. Moreover, RFID is ‘read only’ or ‘read –write’ and can be used in unreceptive environments.
The global RFID digital inventory management system market is driven by the growing need to efficiently manage complex inventory. It has gained popularity across various industry verticals since RFID based digital inventory management systems increase inventory accuracy and in turn help increase profit margin and customer satisfaction. The market has numerous opportunities for further development and innovation in the system. Moreover, various industries are willing to adopt RFID technology to improve inventory management, which is expected to make the market lucrative in the coming years.
The RFID digital inventory management system market can be segmented on the basis of deployment, application, and region. By deployment, the market can be sub-categorized as on-premise and cloud based. By application, the market can be sub-categorized as hospitals and pharmaceutical, retail, logistics and warehouses among others. Big retail stores and pharmaceutical companies are deploying RFID based inventory management systems in order to efficiently deal with complex inventory problems and effectively cater to customer requirements.
Organizations such as Walmart and Zara, among many others have turned to RFID technology to manage their global operations. Hospitals are using the RFID based inventory management system to monitor the stock and help prevent stock-out and inventory shrink. On the basis of region, the market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America
Key players in the market include Impinj, Inc., STANLEY Healthcare, simple RFID, Cygnet Infotech, HID Global Corporation, SATO Asia Pacific Pte. Ltd. CribMaster, Genpact, Mojix, Terso Solutions, CYBRA Corporation, NXP Semiconductors, IBM Corporation, ZIH Corp, and Million Tech Development Limited.
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