The Benefits Of RFID Technology & How It’s Vital To Supply Chain Success

Benefits Of RFID Technology

If you’ve been following supply chain trends for a while, you’ve probably heard (a lot) about RFID and its growing popularity. In fact, you’ve read of many leading organisations turning to this, and you’re wondering – ‘what’s the hype about? And this right for my business?’. So, let’s begin from the beginning.

RFID refers to Radio-Frequency Identification. Ideally, it’s a chip that can store up to 2000 bytes of data and it is successfully replacing the bar-code system in various departments, particularly in supply chain management. Top retailers and suppliers have long since tapped into the benefits of RFID. This includes leading brands such as Amazon, Wal-Mart, Tesco, and more. And clearly, no major multinational would opt for a system renewal or overhaul unless it was helping them drastically cut expenses or pump in profits. So, what’s the deal with RFID?
Supply Chain involves a number of processes such as directing goods from the manufacturer to the distributor; picking, packing, shipping, and its further distribution. RFID technology, simply put, is a revolutionary method that helps keep up with the enormous inflow and outflow of goods. That’s not all, it also creates a transparent system that improves product visibility, streamlined operations, resolves real-time tracking, and optimises business efficiency among others. If you’ve been on the fence about implementing RFID tags, here are a few advantages to consider.

Out of sight. Out of system

To register incoming and outgoing goods, the hand-device has to be held in proximity and directly overhead the barcode. With RFID, products don’t need to be in line-of-sight. All products tagged are automatically detected and entered into the system upon its entry and exit from the warehouse.

Reduced Manpower
By avoiding the process of manually scanning boxes, RFID technology drastically reduces the manual labour involved, sometimes even between 50%-80% in case of large centres. From keeping a track of inventory to scanning, picking and shipping; RFID helps handle multiple activities in a short span.

Real-time updates
Supervisors and executives also have access to real-time data across the system. RFID portals are placed at major access points from where details and timelines of all products are traced. From its exact location at the time of entry and exit – information is automated and accurate. This also helps avoid cases of redundancy, mishandling, or theft.

A fool-proof system
Durability and consistency are major benefits associated with RFID technology. When it comes to using barcodes, executives run the risk of having smudged or unreadable codes due to excess heat or rain. In other occasions, the barcodes may simply fall off if not taped well. With RFID tags, that’s one more thing you needn’t worry about.

RFID is a revolutionary technology that has been changing and improving supply chain operations. A number of companies have already experienced the benefits of this system. Perhaps you can be next in line.