This technology uses a radio frequency identification (RFID) system and it has a wide variety of applications ranging from livestock tracking and FASTag to supply chain and inventory management. RFID-based FASTag payment system has been made mandatory by the National Highway Authority of India in 2019. It was first introduced in 2014.
RFID is a preferred technology of small businesses and retailers, said Vikash Wadhwa, Chief Operating Officer of Bar Code India. “Retailers, offline and online, use RFID technology to adapt to disruption.
Leveraging RFID and IoT, retailers craft intelligent, data-driven supply chain strategies, remaining
informed about stock levels across locations. RFID’s strengths include rapid, accurate inventory tracking, reducing manual errors, enabling non-line-of-sight data reading, and enhancing efficiency and consumer protection,” he said during an interaction with ET Digital.
According to Allied Market Research, in 2020, the India RFID market size was valued at $523.7 million and was estimated to reach $1.8 billion by 2030. It would see a CAGR of 14.1% from 2021 to 2030.
Wadhwa said RFID can drive smart, data-informed supply chains, and can also give counterfeit protection. It can be used in warehouses, and toll roads, making it a versatile solution.
The technology entered India in the early 2000s but the challenges around its adoption remain. Wadhwa said that retailers encounter several challenges such as costs and operational changes when adopting RFID technology. Many SMEs have limited operational budgets, necessitating cost-effective, high-quality solutions. Customisation to local needs can complicate projects.
Inadequate infrastructure and disjointed tech stacks cause interoperability issues, demanding skilled integration, he said. “The initial investment in RFID technology, including tags, readers and software, could be substantial for retailers, especially SMEs with limited budgets. Implementing RFID often involves changes in workflows and processes which may affect ongoing operations,” he said.
Retailers also struggle to find professionals who are well-versed in RFID technology and can guide the implementation effectively. “Handling the massive influx of real-time data from RFID tags could overwhelm retailers’ existing data management systems.” It is important to continuously educate customers about the benefits of RFID and IoT technologies and the ways to use and manage them for optimal results.
Wadhwa said Bar Code India will soon launch a RFID reader portfolio for global use. This will be an advanced RFID UHF (ultra high frequency) reader for tough environments, delivering enterprise-level performance and features. UHF reader helps to read data from a distance of 8-10 m and is completely wireless.
Tough environments include places where there are multiple objects and variables and can thus block the signal and make it unstable between the tag and the reader.
The new technology will also enable seamless interaction with cloud services, facilitating reading from and writing to the cloud, empowering remote management. “This RFID reader will be able to boost your operations, whether at a warehouse dock or managing retail inventory down to individual items. It brings heightened accuracy to receiving, stocktaking, picking, shipping and dispatching tasks,” he added.
