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After much experimentation in the marketplace, Real Time Locating Systems (RTLS) have found their place across a range of industries, from healthcare to manufacturing, according to Frost & Sullivan, which says that the RTLS market was worth some US$201.3 million in 2004, and is forecast to reach some US$1.26 billion in 2011.
There are several alternatives as far as simple locating technologies are concerned. However RTLS has a key role to play where real-time data is essential and when the assets need to be located while in transit. Growing disloyalty among consumers with regard to shifting brands, as well as higher aspirations of companies to increase profit margins, the aggressive approach of the US government toward homeland security, and emerging laws and regulations concerning consumerism, have all nurtured the growth of RTLS.
Consumer intolerance
Consumers are becoming less tolerant toward deficient products or services, due to wide range of choices available to them. Non-traceability of products is no longer a reason for such problems. Consumers want information pertaining to origin of products, such as beef and other edible items, and numerous laws and regulations have emerged to support this. Such issues are becoming more critical due to pressures from both consumers and governments.
"The drawbacks of existing systems have led to the need for real time locating systems," said Frost & Sullivan research associate Sathya Durga. "The unique feature of RTLS - to provide real time data - is a major driver in this market. The need for real time data is growing in every vertical market as it is perceived to provide efficiency and better customer service by providing access to the right information at the right time."
Channel education needed
The latest Frost & Sullivan analysis, RFID Real Time Locating Systems Market, also suggests that channel partners in the RTLS industry are not very active and need to be trained more effectively. The successful implementation of this technology requires a deep understanding of business operations, quality functions, system support issues, standards, IT infrastructure issues, and ERP systems. Ineffective installations lead to customer dissatisfaction and increased customer support issues later on.
"The apparent inefficiency of channel members adversely affects the perception of brands among consumers," warned Durga. "Though technology and pricing factors remain favourable, ineffective deployments reduce consumer confidence and ruin brand images." To overcome these issues, solution providers must train their channel members. Effective and customised training would reflect on the level of customer satisfaction and help in brand building, the report says.
Source: Frost & Sullivan
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