In 2003, Walmart began a pilot program using RFID technology to track inventory in its stores.Walmart then went on to invest around $500 million in its RFID technology induction program in 2004.
By 2005, Walmart had expanded its RFID program to include all of its suppliers. The goal of Walmart's RFID program was to improve inventory accuracy, reduce out-of-stock items, and increase efficiency. The RFID program was initially successful, with the company reporting improved inventory accuracy and increased efficiency.
In fact, Walmart reported that it achieved 99% inventory accuracy using RFID, compared to 63% with traditional barcode scanning. By 2008, Walmart had over 1,000 suppliers using RFID technology. Then something happened. Some suppliers struggled to meet the RFID tagging requirements, and the cost of RFID tags was higher than traditional barcode labels. Additionally, some customers were concerned about the privacy implications of RFID technology and Walmart wasn’t transparent with suppliers as to if there was a significant impact of RFID.
The suppliers stopped tagging their packages and Walmart had to revoke the mandate asking suppliers to tag packages with RFID.
Fast Forward to 2020, after Walmart ‘s first attempt of incorporating RFID, now Walmart started using passive UHF RFID to track assets throughout its inventories and stores.
With cost of RFID tags and RFID coming down drastically, RFID is now again seen as a great tool for asset tracking and the market for RFID is growing rapidly.
What is RFID?
Radio Frequency Identification (RFID) is a short-range wireless technology that is used for automatic identification anddata capture. It uses radio frequency (RF) signals to communicate through data transmission between an RFID tag and an RFID reader.
Whenever an RFID tag is in the range of an RFID reader, it sends the encoded data in the form of a RF signal and the RFID reader reads the data for the end user. The tag or tagged data doesn’t have to be in a clear line of sight with the RFID reader.
Why RFID is the Future of Asset Tracking
RFID has the unique ability to identify assets through RFID tags. These RFID tags are a cost- effective option to track an asset as well. By strategically placing RFID readers at various crucial intersections, assets can be tracked over a large warehouse or store as well.
Let’s see some of the reasons why RFID is the Future of Asset Tracking:
Improved accuracy
The RFID technology offers higher accuracy than traditional asset tracking methods like barcode scanning, reducing errors and increasing inventory accuracy.
Faster data capture
RFID technology can capture data automatically, much faster than traditional methods, allowing businesses to process and analyze data in real-time.
Reduced labor costs
It requires less manual labor than traditional methods, reducing labor costs and increasing efficiency.
Improved supply chain visibility
RFID also enables real-time tracking of assets, providing businesses with greater visibility into their supply chain and allowing them to make better decisions.
Enhanced security
RFID technology can be used to secure and protect assets, reducing the risk of theft and loss.
Improved asset utilization
Businesses can better track the location and status of assets, enabling them to optimize asset utilization and reduce waste. RFID improves the overall asset utilization.
Enhanced customer experience
RFID also allows businesses to provide better customer service by ensuring that products are always available and reducing the risk of out-of-stock items.
Increased efficiency
RFID can automate many asset tracking processes, increasing efficiency and reducing the time required for manual tasks.
Lower costs
While the initial investment in RFID technology can be significant, the long-term cost savings can be substantial, particularly in industries with high asset volumes.
Industry demand
As more and more businesses adopt RFID technology for asset tracking, it is becoming increasingly clear that RFID is the future of asset tracking.
The success story of Walmart's RFID program has led many-many other companies to adopt RFID technology for asset tracking around the globe.
In fact, a report by MarketsandMarkets predicts that the global RFID market will reach $23.4 billion by 2025, driven by demand from industries such as retail, healthcare, and logistics, Retail being the biggest driver.
To summarize, the use of RFID for asset tracking is a feasible and accurate and efficient option for not only in businesses but for personal use as well. Various asset tracking IOT devices for personal use are improving our day-to-day life as well and it can be considered as the future of asset tracking.
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