Pharmaceutical to drive RFID growth
Global - Growth of the RFID (Radio Frequency Identification) market will be driven by the pharmaceutical industry's pressing need to regain lost reputation and revenues due to counterfeit drugs, according to a supply chain study from Research and Markets.
The study, Supply Chain Security Concerns Provide Impetus for RFID Adoption said the industry is forced to act and adopt RFID solutions to secure their distribution channels from counterfeit drugs, due to concerns over the safety of supply chains and health of patients.
Counterfeiters are innovative in introducing fake drugs into the legitimate supply chain, despite the industry's continuous look-out for them.
RFID solutions provide an ideal identification method by which the industry can counter the fake drugs issue, preventing loss of investor confidence and a consequent decline in share price.
This increased supply chain security and operational efficiency will aid the pharmaceutical industry improve their reputation in the delivery of safe drugs.
The adoption of RFID hardware, software and services is expected to drive the growth of these solutions for the pharmaceutical industry, but concerns are raised over the high projected costs of RFID implementation, which is deterring the industry's adoption of RFID systems in their supply chain.
Costs of other hardware and software services are still prohibiting most pharmaceutical companies, even though high costs of tags are alleviated.
Besides, there are few services out there to accurately estimate the return on investment (ROI) RFID solutions can offer.
This lack of clear business case for RFID implementation proves to be the most important barrier that needs to be overcome to increase adoption rates.
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