RFID market growing around 30% per year, SML says
- SML-RFID, an RFID retail inventory management company, told Supply Chain Dive that RFID tags will garner about 8% of the retail apparel market by the end of 2017, while the RFID market continues to grow 30% year over year.
- According to SML, RFID tags improve inventory accuracy by more than 98%, as opposed to “usually less than 70% in store.”
- As Supply Chain Digest notes, RFID tagging is becoming increasingly popular on multiple levels for supply chain usage, even as implants in human hands to accelerate processes and reduce time spent on repetitious tasks.
As retailers seek to improve their omnichannel options for consumers, RFID tagging is gaining credence as a reliable way to streamline supply chains and better control inventory movement and levels.
Macy’s has already announced its plan to tag all its inventory by the end of the year, and Target has already said that tagging its inventory has increased its online sales up to 50%. Although 96% of retailers use RFID to tag apparel, they can use the tech to tag other types of inventory. As a recent study by CRMBuyer shows, only 35% of retailers showed consumers available inventory online, and while 97% of retailers could view inventory levels online themselves, only 33% had the mobile tech to do so.
RFID tagging can slash those stats, and SML’s Dean Frew told Supply Chain Dive that the method is likely to emerge as the leading inventory management technology. “As omnichannel models become more critical for retailers, inventory accuracy strategies must change and RFID is emerging as the only viable option,” Frew said in an email to Supply Chain Dive.
But Frew said there are still challenges to the widespread implementation of RFID tagging, and the main problem is intense complexity.