With the rise of e-commerce and retail businesses, changing customer expectations, and the need for real-time inventory visibility, implementing an RFID-based inventory tracking and management solution becomes crucial for operational efficiency.
RFID technology, as a fast and efficient data capture technology, is now replacing traditional barcodes as well. An RFID-based inventory offers streamlined inventory operations and inventory control.
The use of RFID tags on pallets, stocks, and supply boxes allows one to accurately identify and track items throughout the inventory, from the moment they are procured to the moment they are delivered to end customers. You’d have real-time visibility on these items: how many, where, and how.
Various businesses extensively depend on inventory to ensure business operations, such as order fulfilment and non-stop manufacturing and production. The use of an RFID technology solution offers quick identification of items and accurate data capturing, allowing staff members to quickly take stock counts and manage inventory with absolute ease.
What is an RFID-based Inventory Management System?
As the name suggests, an RFID-based inventory management system is a comprehensive solution that combines RFID hardware and RFID software for data capturing and managing the stocks, inventory levels, inbound and outbound transactions, etc., in a warehouse.
With a clear view of inventory, the RFID inventory tracking system helps you track inventory inflows and outflows, making it so much easier with precision and quick scanning.
Let's take a detailed look at the RFID system and components in inventory management:
1. RFID tag in Inventory Management
An RFID tag is a small electronic device that contains a microchip and antenna. Each tag is programmed with a unique identifier (an electronic product code or EPC) for product identification.
In inventory management, RFID tags make it easier to take stock counts, ensure order fulfillment, and perform cyclic audits.
2. RFID Readers and Antennas in Inventory Management
An RFID reader is a device equipped with a battery or direct power supply port and an RFID reader module. The reader also has an antenna that sends and receives radio signals. Readers connected to a computer system are responsible for establishing communication with the RFID tags. Some RFID readers come with integrated antennas, and some require additional antennas to catch radio signals.
3. Inventory Management Software
The RFID inventory management software is the central component of an RFID inventory solution that can store and manage the data. It receives data from an RFID reader, processes it, and updates the inventory data at various stages of the supply chain.
The RFID inventory management system offers inventory tracking, generating reports, setting alerts, and managing stock levels in the warehouse.
How to Implement an RFID-based Inventory Management System?
Implementing an RFID-based inventory management system in a business requires great precision and calibration, which involves tagging each item, encoding these tags with EPC codes, and setting up RFID-based gates that involve RFID fixed readers and antennas.
Let’s see the implementation of the RFID-based inventory management system in detail:
1. Inventory tagging
Inventory tagging is the first process of the RFID inventory management system. Each item in the inventory is tagged with an RFID tag. These tags can be attached or affixed to items like product packaging, shipments, and labels.
2. Reader and Tag Response
The reading of data stored in a tag is the next step in RFID inventory management. When an RFID tag comes within range of a radio signal emitted by an RFID reader, the radio signal powers up a passive RFID tag. Then, tags transmit their unique identifier (an electronic product code) to the reader using the same radio waves.
3. Data capture and inventory update
After receiving data from a tag that includes the unique information of a product, it is transferred to a connected database system (computer system), and inventory management software updates the inventory database in real time. This process of data updating in the database occurs without any human interaction.
4. Monitoring and controlling inventory
Monitoring and controlling inventory is the last step of an RFID-based inventory management system. Warehouse authorities can monitor stock levels, track item movement, and generate insight reports. The management system is efficient in notifying of the various stock-level information.
Advantages of an RFID-based inventory management system
RFID inventory management systems offer various advantages that include quick scanning, improved visibility of inventory operations, reduced manual interventions, and automated inventory management, which increases inventory accuracy.
Let's discuss some of the advantages of businesses implementing RFID-based inventory management systems:
1. Quick scanning of items
RFID readers can scan multiple tags simultaneously. It can automate various tasks of inventory management that help in identifying and categorizing data quickly.
2. Enhanced visibility of inventory operations
RFID offers a complete overview of the supply chain. With RFID technology, businesses gain real-time insight into their inventory, item location, and movements. This level of transparency in business improves decision-making, improves response according to demand, reduces the risk of stockouts or overstocking, and optimizes the supply chain.
3. Improved asset tracking
An RFID tag assigned to each item helps in automating and tracking inventory. The tracking of assets in real-time helps to avoid the theft of products.
4. Better customer experience
With RFID systems, businesses get faster and more accurate inventory checks. So that they can respond to customer queries about product availability, it will reduce the wastage of time, improving the overall customer experience.
5. Environment-friendly
Using RFID in an inventory management system can reduce paper usage and waste of raw materials associated with manual inventory tracking through improved efficiency.
6. Reduced labor cost
RFID provides an automated solution for data capturing and reduces the need for manual intervention, freeing up staff from more strategic tasks and reducing labor costs.
To summarize, RFID technology has revolutionized various operations in inventory management, such as stock count and replenishment. It offers a higher level of accuracy, efficiency, and real-time visibility on the warehouse floor, compared to traditional methods like barcode scanning and manual data entry. It can streamline inventory management and reduce inaccuracies on the warehouse floor while also preventing theft and losses.
Apart from inventory management, RFID technology is also used in RFID-based parking management systems, RFID-based library management systems, RFID warehouse management systems, RFID Asset Management System, RFID vehicle tracking systems, etc.
