How RFID Can Help Transform a Business’s Supply Chain?

Radio frequency identification (RFID) technology utilizes electromagnetic waves to transfer information without any contact wirelessly.

Although a large number of entrepreneurs have already invested in a barcode system, RFID is believed to be better since it does not require a line of sight.  No matter how far the objects are, the RFID scanners can interact with them in a seamless manner. Of course, the objects must have the necessary tags.

The following write-up specifies ways businesses incorporate RFID into the supply chain. Please check it out right now.

The supply chain, regardless of the industrial sector, consists of four components – integration, operation, purchasing, and distribution. Each has an opportunity to leverage the RFID technology.

Integration

Proper integration, or in other words, communication and data sharing, is essential to an effective supply chain, especially if it is international. Not integrating the supply chain is the same as running a restaurant where the servers must fill five or more forms to submit the orders to the kitchen. It hardly makes any sense, and it would not get you far.

Through supply chain integration, the suppliers, warehouse workers, and transportation companies will be able to communicate and share the data they have in a seamless manner. A tight supply chain is a powerful supply chain.

The experts offering durable yet affordable RFID for inventory said with this technology, sharing and gaining access to data has become easy. RFID tags allow the companies to account for the goods that are in transit quickly, captivate the data, and then share them with the other supply chain associates.

RFID is ideal for sectors whose products do not obstruct readability in any way. Major ones include apparel and fashion, jewelry, cosmetics, and medical and pharmaceuticals.

Operation

The daily operations are known for making or breaking a supply chain. The managers who carry out the day-to-day tasks with caution end up creating a supply chain that is much bigger than the sum of all its parts. Such a supply chain achieves two objectives – 

  • Increases revenue
  • Decreases other expenditures

Through performance data, the managers can comprehend exactly how well they are operating on a regular basis. They will also come to know about the processes that require immediate improvement and the opportunities that are yet to be seized.

Thanks to RFID scanners, the companies can analyze how the goods are moving through the warehouses. Inventory management becomes efficient due to the ready availability of real-time information regarding what is in the warehouse, what is on their way to the warehouse, and what has been delivered to the customers.

Zara is a popular brand that relies on the RFID tag to accomplish operational excellence. As a fast fashion retail establishment, the business model of Zara depends on its capacity to generate cost-effective alternatives to the pricier trendy pieces.

Purchasing

Purchasing is an integral part of the supply chain because it is not possible to manufacture products without procuring the raw materials. With RFID technology, you can keep a track of the raw and semi-finished materials in real-time. RFID also lets you check whether everything that you have ordered is in the shipment. This alleviates the time spent on the receiving and moves the products to the manufacturing stage sooner.

Distribution

Good logistics paves the way for hassle-free distribution – whether it is distributing the raw materials to the manufacturers, distributing excess items to the warehouse, or distributing individual items to the customers. All this happens smoothly if the information is transmitted timely and precisely. And what can smoothly transmit information? RFID, of course!

As evident from the above discussion, RFID is the answer to all the supply chain issues. Even though an up-front investment, you must back away from it.

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