Logistic companies often face pressure to improve operations, reduce costs, and increase efficiency. One way companies achieve this is by implementing new technologies, such as RFID (Radio Frequency Identification), in their supply chain management.
RFID is a wireless technology that uses radio waves to identify, track, and monitor objects without the line of sight of a barcode. It consists of three main components: a tag, a reader, and software. The tag contains a microchip with stored information and an antenna to receive and transmit data to the reader. The reader then captures this information and sends it to the software for processing.
RFID in supply chain management brings a lot of benefits and plays a critical role in improving operations.
Let’s explore how RFID is used in supply chain management, the benefits companies gain from it, and how your logistics company can get started.
RFID technology is used in various stages of supply chain operations.
Below is a breakdown of how it is used in different stages:
Logistic companies manage products and inventory at various locations, such as warehouses, distribution centres, and retail stores. With RFID technology, companies can monitor their inventory in real-time. This allows for accurate inventory stocktaking and reduces the risk of overstocking or out-of-stock situations.
Most warehouses stock thousands of items, making it challenging to count, track, and monitor products manually.
RFID technology speeds up this process by allowing warehouse workers to scan tags on pallets or boxes without opening them.
This not only increases efficiency but also reduces the risk of human error. (Time-saving)
Human error is one of the most common challenges companies face in warehouse management. It can range from errors in data entry to mislabelling items or picking and packing the wrong products. RFID technology helps to minimise these errors, ensuring accurate and efficient warehouse management.
Once products are ready to be shipped, RFID tags can help track and monitor them throughout the transportation process.
This provides real-time information on the movement of goods, helping logistics companies accurately predict delivery times and ensure timely arrivals.
RFID tags can also be used to authenticate products and ensure their authenticity. This is particularly important for high-value goods, such as luxury items or pharmaceuticals, which are susceptible to counterfeiting.
Through RFID technology, companies can track the journey of their products from production to distribution and verify their authenticity at any stage.
Here are some of the benefits of using RFID technology in supply chain management:
With RFID technology, warehouse workers can quickly scan multiple items at once, reducing the time it takes to count and track inventory. Additionally, since RFID tags do not require a direct line of sight to be read, they can accurately capture data even when items are packed tightly together or hidden behind other objects.
With RFID tags, warehouse workers can easily identify and locate products without having to physically search for them. Even misplaced items can be found quickly and efficiently. This reduces the risk of human error and the time and effort required to find specific items.
This also counts for logistical assets like trucks and containers, which can be tracked and managed more efficiently with RFID technology.
RFID technology boosts security across the supply chain by providing accurate and real-time tracking and monitoring of goods.
It minimises the risk of theft or loss, as items can be monitored throughout their journey, and any discrepancies can be quickly identified. Stock discrepancies can be resolved very quickly.
The use of RFID in supply chain management provides real-time visibility into the location and status of products. This allows companies to identify potential delays or disruptions in the supply chain and take proactive measures to address them.
RFID technology can help improve customer satisfaction by ensuring that products are delivered on time and in the right condition. With real-time tracking, customers can also receive accurate delivery estimates, leading to better communication and transparency. RFID also prevent out-of-stock scenarios, which also enhances customer satisfaction.
RFID in supply chain management benefits operational aspects and provides valuable data for analysis and decision-making. By tracking products throughout their journey, companies can gather data on performance, inventory levels, and consumer behaviour. This information can be used to identify inefficiencies and make strategic improvements to the supply chain.
Do you often face human error, mismanaged operations, and lost track of inventory in your supply chain? Then, it might be time to consider implementing RFID technology.
At Milestone, we specialise in RFID solutions. Our team can help you assess your needs, design a tailored solution, and provide ongoing support to ensure smooth integration into your operations.
Contact us today to learn how RFID technology can benefit your supply chain and enhance your business performance.