Supply Chain Challenges & How RFID Technology Can Help

A staggering 97% of supply chain professionals are turning to RFID solutions to tackle today's most pressing operational supply chain challenges.

This isn't just another technology trend; it's a fundamental shift in how businesses approach supply chain management in a complex global marketplace.

Supply chain challenges have become more intricate and costly than ever before. However, Radio Frequency Identification (RFID) technology offers a powerful solution to many of these persistent issues.

This blog explores the most significant supply chain challenges facing businesses today and demonstrates how RFID technology can transform these obstacles into opportunities.

5 Major Supply Chain Challenges

Here are the five most pressing issues:

1. Inventory Management Difficulties

Poor inventory tracking leads to stockouts, overstocking, and significant financial losses. Many businesses struggle with real-time visibility into their inventory levels across multiple locations, resulting in inefficient resource allocation and customer dissatisfaction.

2. Labour Shortages and Rising Costs

The ongoing labour shortage crisis affects warehouse operations, logistics, and overall productivity. Companies face increasing wage demands while simultaneously dealing with reduced workforce availability.

3. Lack of Real-Time Visibility

Without comprehensive visibility across the entire supply chain, businesses cannot make informed decisions. This opacity leads to reactive rather than proactive management, resulting in increased costs and reduced efficiency.

4. Manual Process Dependencies

Many supply chain operations still rely heavily on manual processes, which are time-consuming, prone to errors, and difficult to scale. These outdated methods create inefficiencies and increase the likelihood of human error.

5. Compliance and Traceability Requirements

Increasing regulatory requirements and customer demands for transparency create additional complexity in supply chain management. Businesses must maintain detailed records and ensure full traceability throughout their operations.

How RFID Technology Addresses Supply Chain Challenges

RFID (Radio Frequency Identification) technology consists of three main components: RFID tags, readers, and software systems.

This powerful combination creates an automated identification system that can revolutionise supply chain management.

What is RFID?

RFID uses electromagnetic fields to automatically identify and track tags attached to objects, animals, or people. These tags contain electronically stored information that can be read from several metres away without requiring direct line-of-sight scanning.

How RFID Transforms Supply Chain Management:

• Improved Inventory Accuracy: RFID provides inventory tracking with up to 99% accuracy, dramatically reducing stockouts and overstock situations. This precision enables better demand forecasting and inventory optimisation.
• Automated Data Collection: RFID eliminates manual data entry processes, reducing human error and freeing up valuable labour resources for higher-value activities. This automation can increase operational efficiency by up to 30%.
• Improved Traceability: Complete product journey tracking, from manufacture to delivery, ensures compliance with regulatory requirements and enables a rapid response to quality issues or recalls.
• Labour Efficiency: By automating routine tracking tasks, RFID allows staff to focus on more strategic activities, effectively addressing labour shortage challenges whilst improving overall productivity.
• Real-Time Visibility: Instant access to location and status information across the entire supply chain enables proactive decision-making and reduces response times to potential issues.

Solve Supply Chain Challenges with RFID Today!

The evidence is clear: RFID in supply chain offers a comprehensive solution to many of the most challenging issues.

Ready to transform your supply chain operations?

Contact Milestone Integrated Systems to get started with RFID solutions.