Logistics and shipping industry analysis presents an ever increasing demand for technology that can make the handling process more efficient by saving time. A number of such developments have been made and many more are being experimented. Radio Frequency Identification or RFID is a data collection technology that uses electronic tags for storing data and is an automated form of identity verification.
Product identification is immensely important for smooth functioning and this sector has been upgraded with technologies such as Bar Code scanners. RFID is a method of storing data and retrieving it via radio waves much in the same way as a bar code can store information about the product. It uses electromagnetic fields to automatically identify and track tags attached to objects. The RFID tags contain electronically stored information and unique identifiers that correspond to inventory database records. Passive tags collect energy from a nearby RFID reader’s interrogating radio waves. Active tags have a local power source such as a battery and may operate hundreds of meters away from the RFID reader. RFID in logistics chain offers some significant advantages over traditional inventory control methods-
- RFID tags are superior to barcodes. Unlike a barcode the RFID tag need not be within the line of sight of the reader and may be embedded in the tracked object. Also, RFID tags hold more data than bar codes. A major differentiator is the unique serial number in the RFID’s Electronic Data Code (EPC) because it allows tracking of individual items. RFID works wirelessly, so you can point a scanner at a box of items and register each one without having to take them out first
- RFID tags contain a microchip hence, the transportation process will also be made smoother as RFID tags on shipping items are of small size and can easily be used, disposed and replaced after usage. This lets the controller know about transportation taking place.
- Safe and secure handling of goods is also made possible as tracking items is made easy and flexible with RFID. The storing and networking of information through RFID gives it an extra edge in security purposes as the tags can trigger security alarms if removed.
- RFID is able to scan multiple products simultaneously which is done without any human intervention making the process diligent. It therefore, acts as a responsible regulator of products.
- RFID can also be integrated with other systems and when scanned on entry and exit can let you know when the item left the premises.
Market research reports for logistics reveal that RFID, which is still in its developing stage, is attracting global interests. The RFID market is expected to hit a market value of USD 19 billion by 2026. The global RFID readers market is expected to witness a significant CAGR of 12.5% from 2017 to 2027.
RFID is widely being promoted as a step forward in logistics management with its advanced techniques. The various uses of RFID tags are still being explored and its ability to track items is gaining popularity among automobile manufacturers, pharmaceutical companies and for livestock management despite the related privacy concerns owing to its ability to get attached and read personally linked information without consent.
Key Factors Considered in the Report:
Logistics and Shipping Market Research Reports
Logistics and Shipping Industry Analysis
Market Research Reports for Logistics
Logistic Market Research Report
Logistics and Transportation Market Research Reports Consulting
Logistics Business Review
Logistics and Shipping Industry Research and Market Reports
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Ankur Gupta, Head Marketing & Communications