Buoyed by the success of the increasing numbers of radio frequency identification (RFID) pilots and projects in supply chains, end users are becoming progressively keen on utilizing RFID in supply chains. They are realizing that better visibility will aid the creation of a more efficiently managed supply chain, which will enable them to reduce their overall operational cost. They can achieve greater efficiencies if the RFID project deployment takes place on an end-to-end scale.
New analysis from Frost & Sullivan (autoid.frost.com), Asia Pacific RFID Supply Chain Market, reveals that the market earned revenues of $170.3 million in 2006 and estimates this to reach $646.3 million in 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 Frost & Sullivan Research Associate Richard Sebastian. "Once end users begin to realize that RFID’s value extends beyond mere mandate compliance, this technology is expected to experience large-scale adoption."
An increasing number of mandates in Asia Pacific will indirectly spur RFID adoption in the supply chain within this region. Other companies and organizations in this region are expected to announce new mandates once they deploy RFID within their own supply chain.
Furthermore, the ratification of standards and frequency allocation for RFID technology will make it more feasible for end-user adoption. As costs gradually come down, more end users will be able to afford RFID in their supply chain, ensuring the technology thrives in the Asia Pacific supply chain market in the next few years.
"To build on this greater interest in RFID, all parties involved with it need to better educate end users about its actual benefits, without over-hyping it," remarks Sebastian. "Although end users more or less understand what RFID technology is on a general level, they are unable to comprehend how RFID can transform their supply chain to be more efficient, and hence, earn them ROI."
However, end users need to conduct feasibility studies and plan cleverly to restructure the entire business processes to accommodate this technology. Without proper planning, they will not be able to reap the full benefits that RFID has to offer to their supply chain.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Asia Pacific RFID Supply Chain Market, then send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. We will send you the information through email upon receipt of the above information.
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