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Successful RFID cases are proliferating in the retail industry, with more fashion and apparel retailers adopting and expanding technology rollouts. As their RFID tagging volume grows, these retailers are beginning to push the tagging function back to their suppliers. This trend greatly increases the potential for non-reading or underperforming tags to enter the supply chain.
There are immediate technical solutions to this challenge, and industry standards are being developed to deliver RFID source tagging best practices to retailers, brands, global producers and RFID tag and service providers. To move forward confidently with source tagging, it's important to consider the risks and rewards from a variety of angles.
Abundant benefits, amazing growth
Just how rapidly is RFID use growing? Market research firm IDTechEx estimates the market for RFID tags, solutions and services reached $9.2 billion in 2014 and double to approximately $18 billion by 2018. In the global apparel industry alone, that translates into about 3 billion RFID tags being applied to garments right now. IDTechEx estimates there are 40 billion apparel items produced each year that have the potential to be tagged.
The drivers and returns are clear. Retailers that have implemented RFID tagging have seen sales increases of 3 percent to 10 percent, according to consulting firm Kurt Salmon. When University of Arkansas researchers conducted a survey about RFID's greatest uses, retailers pointed to the prospect of improved inventory accuracy, fewer out-of-stock problems, stronger loss prevention and greater ease of locating products.
