3 Reasons Why Your Business Benefits From RFID Technology

3 Reasons Why Your Business Benefits From RFID Technology

Over time, we’ve seen how RFID technology application has managed to help numerous businesses save time and money.

For instance, RFID retail has helped many businesses in the retail sector shorten queues, speed up the checkout process, and make the cycle count significantly faster and more accurate. Some of the human errors that initially led to wastage of time and huge losses have also been cut down by the use of RFID.

Besides the advantages mentioned, there are many other ways RFID tags can help the business operate efficiently in the long run.

Bolstering security and reducing theft

In the retail sector, to be more precise, one of the main causes of inventory loss is due to theft. This is especially true when there is no special mechanism or technology to ensure that the items are always safe and secured.

Some companies have devised different means to counter theft and improve their internal and even external security; however, certain security tags are costly and not as efficient. RFID tags, on the other hand, particularly passive RFID tags are economical and easy-to-carry, so it’s a viable option for businesses with a tighter budget.

Active RFID tags are undoubtedly more effective, but it’s considered more expensive due to the additional benefits provided – such as an extensive range of scanning goods and depending on its own primary source of power.

RFID technology helps to fortify security at the main doors of the warehouse facility. This is to help deal with anyone planning to take items out of the facility without following the correct procedures. When such an item gets to a door, the tag sends signals to the reader, which then triggers an alarm.

Reducing human error

Human error is one of the most common occurrences to consider when managing a business – as they’re bound to happen from time to time. As such, this may affect the business negatively as rectifying them may equally take time and money, thus derailing the gains made by the business.

This is where RFID comes into the picture. When using these tags on items inside a facility, it will help to obtain accurate data. Sufficient training aside, RFID tags help to create clearer processes and an easier way of checking stocks without much difficulty – mainly due to easier scanning, improved product visibility, and location tracking.

Taking stock on inventory only requires a few minutes as well due to how RFID acts as a highly effective asset tracking system, hence, all the data is present from the RFID tags on items and products.

Better ROI and more savings

Businesses are able to review and analyse RFID data to pinpoint any sort of bottlenecks during the manufacturing process. Moreover, through the real-time data obtained – information can be used to plan for new orders of inventory, predict stock life cycles, as well as utilisation and maintenance of inventory. This also extends up to predicting growth of a particular inventory or the business itself.

With the insights acquired, it helps the business prepare for future innovations and improvements so that one can have more efficient operations and provide better customer experience.

Similarly, labour savings are massive as with the increased accuracy in transactions and inventory – a business could save money by reducing the required level of safety goods, avoiding chargebacks, and accelerating accounts receivable.

Regardless of the business operations, RFID can be utilised in many different industries, as seen in instances like military or aerospace RFID. Check with an RFID technology provider to find out if there are products suitable for a business.