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Companies primarily use item-level RFID to track items for inventory control and supply chain management purposes. Tagging single products allows for better accuracy and visibility in supply chain processes, helping to eliminate common supply chain problems such as inventory shortages and wasteful overstocking. RFID tag prices have decreased in recent years, making item-level RFID more realistic for many companies, particularly in the retail and consumer goods industries. In addition, innovations such as fabric tags or disposable paper tags appeal to retailers for use cases like apparel inventory management.
In the future, item-level RFID could play a larger role in the Internet of Things because RFID tags could contain sensors capable of transmitting operational, location and situational data that could help improve manufacturing and supply chain operations.