RFID has seven advantages for supply chain and logistics management.
Despite being around for a while, RFID technology still has uses today and may be able to assist businesses in streamlining their supply chains.
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Logistics managers can track and manage goods and assets in the supply chain in a variety of ways thanks to RFID. With applications ranging from inventory management to automation, RFID tags and scanners have the ability to enhance product and material handling both within and outside the warehouse environment.
1. Enhances product tracking by integrating WMS
The receipt, storage, and distribution of commodities are monitored by warehouse management systems, or WMSs. Product locations, inventory levels, reordering information, and other data that users would need for supply chain management are all stored in a WMS.
Users may be able to increase the speed, ease, and accuracy of product tracking by integrating RFID technology with a WMS. Employees may use an RFID scanner to scan the items on each pallet as soon as they arrive at the warehouse and update the new stock to the WMS. Employees may activate location tracking by scanning the goods and the bin number when they are being stored in the warehouse. Additionally, pickers have the option to scan each RFID tag as they choose items and subsequently designate them as leaving the distribution facility.
2. Increases the effectiveness of product handling
RFID tags can also be used for managing items both inside and between supply chain sites and for planning routes.
Workers in warehouses may outfit trucks, containers, forklifts, and other material handling equipment with RFID tags so that they can swiftly retrieve equipment to transport goods and always know where it is.
3. Quickens the process of inventory counting
Inventory counting and reconciliation can be accelerated with RFID tags and scanners because warehouse staff can quickly and precisely scan RFID tags with portable RFID equipment. While some scanners can count each tag individually for each item, others can count every tag in a certain area almost simultaneously.
Accurate inventory management may also be achieved through faster and more regular inventory counting.
4. Aids in resolving inaccurate inventory counts
RFID technology facilitates the process of locating the root cause of problems related to product distribution, storage, or receipt. RFID allows warehouse staff to track the movement of a specific product and look into the cause of any discrepancies. An RFID scanner could detect the tag somewhere else and notify the user, for instance, if a worker accidentally stores an item in the wrong place.
Given that RFID offers details about the issue’s cause, warehouse managers may find it easier to take preventative measures.
5. Promotes increased product accessibility
Customers of today want everything to be available at all times, and suppliers may guarantee their items will be in stock when required by merging RFID product monitoring with consumer demand information.
RFID allows manufacturers, suppliers, and retailers to monitor items across the supply chain, giving them constant visibility into the locations of their products. These teams may then coordinate the quantity of items in a certain area to make sure they have enough to fulfill sales targets and projections.
When combined with consumer demand data, RFID has the potential to enhance the customer experience by increasing product availability.
6. Aids in automating the distribution, storage, and reception of products
Automation is a common tool used in modern warehouses to try to expedite selecting, distributing, and receiving items. RFID allows robotics and other technologies to recognize, handle, and route products.
Product tags enable automated technologies to choose the best package types for certain things, while packaging tags help robots recognize products and store them in or retrieve them from a given area. Equipment tags facilitate the movement of goods by robots that use specific picking and packaging technologies.
Automation technology has the potential to lower a company’s total expenses by eliminating the need for human labor.
7. Promotes manufacturing process optimization
RFID may help reduce production costs and improve productivity while upholding quality requirements.
RFID tags allow suppliers to track parts and raw materials inside their buildings, which may eliminate the requirement for restocking in the event that a part that was thought to be lost turns out to be located. RFID may also be used by manufacturing equipment to recognize and choose components and assemble them into things that are ready for consumers.