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Advantages of RFID technology in Logistics Management

  • Akansha Sharma
  • Feb 22, 2023
  • RFID
Advantages of RFID technology in Logistics Management

Use of RFID technology is not new. It is being done for many decades now but the recent growth in technological advancement, 4g internet, Bluetooth, Wi-Fi, NFC have only pushed the RFID applications to a huge scale. 

Logistics is one of the leading beneficiaries of RFID implementation in businesses. The huge costs of keeping an extensive human capital, long working hours, slow and erred inventory controls etc. are some of the problems that have been solved using RFID. 

RFID is the new age alternative to manual and slow barcode scanning. Remote scanning using RFID UHF Readers is profoundly used in logistics and retail businesses.

Here’s how RFID has changed the Logistics business completely:

RFID in Inventory management:

Using UHF RFID Readers, RFID tags and antennas (altogether termed as RFID system), the inventory management has become easier. You can place RFID Tags on stocks/ stockpiles, and take stock of items left and their movement in the inventory itself, from a distance, using an UHF RFID Reader.

You can also manage how items move by prioritizing stock out within the inventory.

Inventory management software can also manage the followings:

•  Inventory valuation,

•  Inventory carrying cost,

•  Replenishment Lead Time/replenishments, and

•  Inventory forecasting.

RFID Inventory Control:

 RFID Inventory Control Software, utilizing the RFID System, can manage stock control, purchase history, production history, reduce time taken to take stock of inventory, and manage inventory levels. 

It can avoid human errors significantly and prevent “item out of stock” situations.

 Inventory software, using RFID system in place, can generate real time results regarding inventory in seconds. 

Delivery and Consignment tracking using RFID: 

It has always been an issue to know where a particular consignment is. What time will it arrive to the warehouse or where is it now? The on time delivery of a consignment is also a factor that makes or breaks a Logistics business.

Using RFID system, you can keep track of inbound or outbound consignments passing through various intersections within a delivery course. It is done using RFID Tags, RFID Readers and antennas.

 RFID Reader modules can be used for reading from and writing to various intelligent RFID transponder tags, and the written data can be as per your needs.

Beacons (Active RFID tag) can be used to track assets with precision, and maintaining the delivery period. 

RFID in Logistics Supply Chain:

Supply is a huge part of logistics business and RFID is very much capable of resolving supply related issues with increased automation.  Many Logistics businesses, with increased demand, suffer with supply, lack inventory and can’t handle excess demand. 

RFID can be used for forecasting the demand over the period and generate data on the same. 

RFID tags can be used on particular items to keep track of their consumption and disposal from the warehouse. Defective assets can be identified and removed from the inventory and the space can be utilized further.  Handheld UHF RFID Readers can help workers move around freely and take stock of resources within the supply chain and maintain the inventory effectively. 

Inventory automation and fast supply chain are important part of Logistics business in recent times. RFID can transform the logistics further when integrated with modern technology.

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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 Jan 10, 2023

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