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RFID Being Useful to the Supply Chain

  • Administrator
  • Sep 29, 2022
  • RFID
uses of RFID in product logistics

When a company expands it is obvious that its operations and supply chain will naturally grow. This makes the processes to be more complex and this makes the accuracy to be more important at each link in the supply chain.

Here uses of RFID in product logistics come into play. 

RFID application is commonly used for tracking and management; in which inventory management, cargo, asset tracking, supply chain logistics, and vehicle tracking come in. It is also be used in the supply chain for more visibility and distribution.

Less visibility and inaccuracy can stop production and also limit the company’s efficiency. RFID gained much importance several years ago; while some people today might argue that with more expansion of IoT integrations, RFID is now outdated, and now RFID technology is anything but useless.

But that is not true; RFID is still being implemented widely and is more useful to the supply chain industry.

RFID vs Barcodes 

Barcodes and RFID tags are the two leading pieces of equipment that help logistics companies to locate and identify products. While they both do similar things, they are different.

Both are used to track assets; however, one is mobile, while the other is stationary.

The Barcode system scans the “UPC” code that identifies a product, location, or storage commodity used in the movement. It depends on a stationary system and is not useful for tracking goods in real-time.

While RFID tags can be traced in real-time as they move through the chain.

RFID Improves Visibility 

With the use of RFID in product logistics companies can track their supply chain workflow this provides more usable data along with manufacturing equipment, inventory, asset management, and company processes. All this data can help streamline the areas of the supply chain through automation.

It is possible to integrate RFID into various supply chain tasks and streamline things. Processes that take two hours to complete with RFID may only take a matter of minutes.

With all the information you can make quicker, more informed decisions that can easily boost your supply chain management efforts.

All this allows processes to be fully automated and removes the element of human error. RFID-based warehouses and distribution centers take their inventory visibility and availability from 2 percent to 20 percent.

Improves Productivity 

Barcodes have to be visible for scanning it. This is time-consuming as the person has to walk to the product, locate the barcode and then scan it with the equipment.

RFID uses radio frequencies this helps to ping the location of the product and reduce the time needed to locate, and track products.

Provides Real-Time Inventory Tracking 

With increased visibility using data generated through RFID cuts costs. Real-time tracking shows the most accurate inventory levels. 

RFID helps companies to see exactly how much of the product is left. This allows getting a better timeline of when to reorder. You can also check the optimal inventory level so there is no excess product left, wasting money on storage. 

All this visibility gives the retailers information on what is selling and what is sitting for too long. To handle this sort of task, it would take days or weeks without RFID in product logistics.

Higher Accuracy 

RFID in warehousing and storage systems results in a major improvement in product picking. According to a survey, manufacturers who implemented RFID into their supply chain saw an 80 percent improvement in shipping and picking accuracy. This saves companies a good amount of money.

RFID increases inventory accuracy and high inventory accuracy lead to increased sales. But this is then possible if the retailers use the data to improve their operations and processes.

As supply chains are evolving, RFID is also improving and helping to solve some common supply chain problems while improving efficiency.

RFID is improving visibility and generating more useful information such as real-time inventory tracking and is more accurate.

Reduce Loss, Theft, and Shrink 

With the use of RFID in product logistics, it also helps companies with inventory control, where they can keep track of any moving products that are not authorized. This is really necessary with high-value products such as computers, televisions, and automobiles. Also, most of the time the only appearance or knowledge that RFID tags are attached to the product can reduce the potential of theft.

Disclaimer: The information presented here is for general information purposes only and true to best of our understanding. Users are requested to use any information as per their own understanding and knowledge. Before using any of the information, please refer to our Privacy Policy and Terms and Conditions.

  • Created on May 26, 2022

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